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Rapid Link Announces 1st Quarter Fiscal 2008 Financial Highlights

FIRST QUARTER FISCAL 2008 HIGHLIGHTS

--  Operating Income of $28,831, an improvement of $535,289 compared to
    the same period last fiscal year.

--  Gross profit increased to over $1.29 million, or 22%, as compared to
    first quarter fiscal 2007; general and administrative expenses decreased
    $187,000, or 23%, as compared to first quarter fiscal 2007.

--  Net income excluding non-cash items of $127,457 for the three months
    ended January 31, 2008, an improvement of $485,331 over the same period
    last fiscal year.
    

                                         Quarter Ended January 31,
                                    ----------------------------------
                                         2008                2007
                                    --------------      --------------

Total Revenue                       $    4,013,479      $    4,452,977
Gross Profit                        $    1,297,708      $    1,064,209
Operating income (loss)             $       28,831      $     (506,458)
Net income (loss)
 excluding non-cash items           $      127,457      $     (357,874)

With over 15,000 customers worldwide, Rapid Link is poised to grow with technologies, further serve our customer base of customers and expand into new markets. We have fully integrated Telenational Communications into our operations, and recently completed the asset purchase of Web-Breeze Networks and Communications Advantage, which include a wireless broadband network. We expect to close the acquisition of One Ring Networks, Inc., in our second fiscal quarter of 2008.

"We are pleased to have been able to back up our strong 2007 year-end numbers and earnings with a solid first fiscal quarter of 2008. As we continue to grow through both organic means and strategic acquisitions, we have set our sights on an aggressive yet attainable growth model for the balance of our fiscal year," stated Chris Canfield, Rapid Link's President and Chief Financial Officer.

Excluding non-cash items, net income available to common stockholders for the quarter ended January 31, 2008 was $127,457 vs. a net loss to common stockholders of $357,874 for the previous quarter ended January 31, 2007, representing a $485,331 improvement. For the three months ended January 31, 2008, Rapid Link incurred $154,189 in non-cash interest expense. Additional non-cash items incurred during the year include depreciation and amortization expense, share-based compensation expense, bad debt expense, and loss on property and equipment.

Net income (loss) before non-cash items is not a term defined by generally accepted accounting principles (GAAP) and may not be comparable to other similarly titled measurements used by other companies. Such non-GAAP measures should be considered in addition to, and not as a substitute for, performance measures calculated in accordance with GAAP. The accompanying table includes a detailed reconciliation of net loss reported in accordance with GAAP to net income (loss) before non-cash items.