SAN JOSE, CALIF. (April 27, 2005) - Virtual PBX®, the leading supplier of hosted PBX services to small- and medium-sized businesses, today announced record first quarter revenue, profitability and customer signups. Sales increased 51% over the same quarter a year ago and increased 10% sequentially over the fourth quarter of 2004, marking the company’s ninth consecutive quarter of revenue growth. The rate of new customer acquisition also reached a new record. New customer contracts signed in the first quarter of 2005 increased by 86% over the same period a year ago, and 67% over the fourth quarter of 2004.

"We’re experiencing solid growth across our business, driven by the technical superiority and value of our offerings and by the market’s growing acceptance of hosted PBX services," said Greg Brashier, vice president of marketing at Virtual PBX. "For just $12 per month, our Virtual PBX service delivers the sophisticated call management features - including automated call attendants, automatic call distribution (ACD) and skills-based routing – of thousands of dollars worth of PBX equipment."

Virtual PBX achieved several milestones during 2004 that laid the foundation for the company’s record first quarter results, including:

• Major product enhancements that included skills-based routing capabilities, integrated conferencing, and real-time online monitoring of ACD queues and human resources.
• Successful introduction of the Virtual PBX SOHO (Small Office Home Office) Service, a new value package for small businesses.
• Introduction of a new partner program that allows channel and strategic partners to share in revenue generated by opening new accounts.
• Strengthening the management team by hiring Greg Brashier as vice president of marketing, an accomplished high-tech executive and former professor of marketing at BYU’s Marriott School of Management, a US top-30 business school.
• Winning the CommWeb/CMP Editor’s Choice Award for hosted PBX service.

"We’re pleased with our growth in 2004 and our strong performance in the first quarter,”" said Paul Hammond, CEO of Virtual PBX. "A major factor in our success has been the increasing number of mobile workers and telecommuters in the SMB market. Our customers expect sophisticated, easy to deploy services that can route calls to any worker, in any location. We will continue to meet those needs while we further expand and enhance our offerings in 2005."

Virtual PBX^® pioneered the hosted PBX market, introducing the first service of its class in 1997. Virtual PBX utilizes the public switched telephone network and the internet to provide PBX functionality as a hosted service. The three primary customers for Virtual PBX services include small businesses that want full PBX functionality without the capital and support expense of installed equipment; companies of any size that need to route calls to telecommuters or other employees outside of a main office; and enterprises looking for phone system disaster recovery solutions. Additional information about Virtual PBX can be found at http://www.virtualpbx.com or by calling 888-825-0800.

# # #

VirtualPBX.com^®, Virtual PBX^®, and VirtualPBX^® are registered trademark VirtualPBX.com, Inc.

Kerry Swanson
Dovetail Public Relations
(408) 395-3600
kerry@dovetailpr.com

Greg Brashier
VP of Marketing
VirtualPBX.com, Inc.
(888) 825-0800 x333
greg.brashier@virtualpbx.com