Elephant Talk Communications, Inc. Executes Joint Venture with ValidSoft Limited

- Elephant Talk's Joint Venture Products Target Credit Card Fraud

SCHIPHOL, Netherlands, June 24 /PRNewswire-FirstCall/ -- Elephant Talk
Communications, Inc. (OTC Bulletin Board: ETAK), an international telecom and
multimedia content distributor, specializing in carrier grade mobile delivery
platforms, today announced the completion of a Joint Venture agreement with
ValidSoft Limited, a provider of sub-second identity verification, fraud
prevention and false positive reduction for Credit and debit card ATM and POS
(Point of Sale) transactions. The agreement executed on June 17, 2009, shall
remain in place for ten years.

Prominent European banks have completed trials of the product and have
reported that card fraud and false positives were both virtually eliminated.
The joint venture is now in discussions to deploy its products and services
with major financial institutions located around the world. It is estimated
that the total cost of credit card fraud in the United States in 2008 cost
financial institutions over $50 billion and industry sources estimate the loss
from credit card frauds will triple over the next 3 years.

ValidSoft will use Elephant Talk's international telecommunications platform
to integrate and seamlessly deliver their proprietary software solutions to
protect users from financial fraud, while offering additional unique product
offerings. Each party will be entitled to a commission from the other party
for the generation of revenues from each others products and services.

"ValidSoft's best in class software, quality relationships with Fortune 500
companies, and experienced management team provides the perfect complement to
Elephant Talk's elite telecommunications network infrastructure," stated Mr.
Steven van der Velden, CEO of Elephant Talk Communications. "We believe that
this joint venture will assist the users of the joint venture products and
services in reducing credit card fraud and will help banking institutions and
governments lessen the amount of money loss from fraud. Management expects
that this partnership will allow ETAK to offer an innovative proprietary
solution to our rapidly expanding customer base which will increase our market
share and expand our global footprint."

ValidSoft's patented and patent pending software is based on precisely
detecting real time electronic fraud while minimizing false positives
detection and resolving fraudulent transactions in a fully automated manner
whilst protecting the privacy of the individual. False positives result in
the denial of legitimate transactions which is a leading reason for customer
dissatisfaction with the card issuing bank. Due to ValidSoft's ability to
accurately detect electronic fraud and eliminate up to 95% of false positives,
the software offers card issuing banks significant operational cost savings,
high customer satisfaction, greater customer protection, higher transaction
completion and significantly reduced fraud.

"Bank fraud and identity theft are a worldwide epidemic that account for tens
of billions of dollars lost annually," said Pat Carroll, Chief Executive
Officer of ValidSoft. "We are confident that this strategic relationship is
the ideal partnership to combat the global fraud dilemma, and bring innovative
products using mobile networks. Upon completion of paid trials, ValidSoft has
received positive feedback from major European banks. We believe that banks
and governments worldwide will make a concerted effort to stop bank fraud and
identity theft in order to provide peace of mind to customers and promote
better business practices. It is our goal to establish ourselves as a
worldwide leader in fraud prevention and we believe that this agreement will
help us achieve that goal."

ValidSoft is a real-time, risk-based, Out-of-Band Multi-factor Authentication
and Transaction Verification platform with solutions designed to help prevent
fraud across a variety of transaction types and channels including: Card
Present (CP) & Card Not Present (CNP) fraud and false positive detection,
identification and resolution; Internet Banking; Telephone Banking; Mobile
Financial Services; Extranet; VPN; Remote Access, and Business Continuity. The
solutions are disability enabled, environmentally friendly and based on
telecommunications technologies thereby providing the highest levels of
security up to non-repudiation level where required, based on the banks risk
policies.

Mr. Martin Zuurbier, CTO of Elephant Talk Communications added, "The market
for fraud prevention software and solutions is an emerging and rapidly growing
sector. In the last 100 years, the scope and quality of telecommunications
technology has exceeded anything anyone could have imagined, from the
introduction of basic Telephone Service, up to the massive introduction of the
Internet followed by the enormous development of mobile and wireless
capabilities. In today's market financial institutions would benefit from
adopting our mobile enabling technology in coordination with ValidSoft's
capabilities in order to lower credit fraud. On top of that, our joint venture
will provide banks the platform for a secure mobile distribution channel as an
alternative for bricks and mortar or internet banking, while allowing the
banks to reach their customer base on an individualized basis. Further, by
using our converging technology and fully integrating Fixed, Mobile, WIMAX and
WIFI platforms, Elephant Talk should gain a strong competitive advantage in
servicing the needs of the world's largest banks."

"The approach taken by Elephant Talk and ValidSoft represents a complete
paradigm shift to combating the global electronic fraud epidemic," stated Mr.
Phil Hickman, Chairman of ValidSoft Limited. "During my 32 years at HSBC
Bank, I spent much of my time focused on trouble-shooting, change management
and innovation. In my opinion ValidSoft's software, in combination with
Elephant Talk's superior delivery platform will provide both banks and
governments the most accurate, best in class, and cost effective fraud
prevention solution on the market. We estimate that our software combined
with Elephant Talk's platform will provide significant savings to the banking
industry."

About Elephant Talk Communications
Elephant Talk Communications is positioning itself as an international telecom
operator and enabler to the multimedia industry by facilitating the
distribution of all forms of content as well as mobile and fixed telecom
services to global telecommunications consumers. The Company provides
traditional telecom services, media streaming, and distribution services
primarily to the business-to-business (B2B) community within the
telecommunications market where it has a presence. The Company's global
footprint as a fully licensed carrier, supported by its propriety IN
(Intelligent Network) and Billing/CRM (Client Relationship Management)
Systems, has been designed to offer cutting-edge solutions to the increasingly
competitive global multimedia industry. Elephant Talk's telecommunications
platform eliminates the usual limitations caused by national borders,
networks, devices or media and, therefore, enables its B2B customers to
operate as independent telecom and multimedia distribution organizations.
Elephant Talk is also a developer for mobile telecom and content distribution
solutions; and, as a Mobile Virtual Network Enabler (MVNE), the company has
positioned itself as the premier outsourcing partner for both Mobile Network
Operators (MNO's) as well as for Mobile Virtual Network Operators (MVNO's). At
the same time, Elephant Talk assists its MNO partners to more efficiently
provide a broad range of sophisticated services to their own existing base of
MVNO's. Elephant Talk is positioning itself as the preferred MVNE partner of
the larger, global Mobile Operators and currently operates sophisticated
networks in over a dozen markets in Europe, Asia Pacific, and the Middle East.
The Company was ranked fifth on the Orange County 2008 Deloitte Technology
Fast 50. For more information, visit: www.elephanttalk.com.

Forward-Looking Statements
Certain statements contained herein constitute "forward-looking statements"
within the meaning of the Private Securities Litigation Reform Act of 1995.
These forward-looking statements are based on current expectations, estimates
and projections about the Company's industry, management's beliefs and certain
assumptions made by management. Readers are cautioned that any such
forward-looking statements are not guarantees of future performance and are
subject to certain risks, uncertainties and assumptions that are difficult to
predict. Because such statements involve risks and uncertainties, the actual
results and performance of the Company may differ materially from the results
expressed or implied by such forward-looking statements. Given these
uncertainties, readers are cautioned not to place undue reliance on such
forward-looking statements. Unless otherwise required by law, the Company also
disclaims any obligation to update its view of any such risks or uncertainties
or to announce publicly the result of any revisions to the forward-looking
statements made here; however, readers should review carefully reports or
documents the Company files periodically with the Securities and Exchange
Commission.

About ValidSoft
ValidSoft is an emerging leading provider of telecommunications based, world
class security solutions to counter the serious problem of growing fraud, in
particular Card Fraud (ATM and Point of Sale), Card Not Present fraud (e.g.
Internet purchases) and Internet Banking fraud, which is costing the Financial
Services Industry, Corporations and Governments billions of dollars per annum
in fraud losses and associated administration and manual processing costs.
ValidSoft solutions represent a paradigm shift in solving these problems with
performance improvements of over 900% achievable over today's industry
standard results. ValidSoft solutions are easy to implement, are operationally
fast (sub second), accurate, low cost and avoid privacy issues. The solutions
are capable of providing protection against the most sophisticated fraud, yet
are simple and convenient for users and provide a fast return on investment.
For more information, visit www.validsoft.com.

For media enquiries, please contact:
Elephant Talk Communications, Inc.
Mr. Steven van der Velden
Tel: +31 20 653 59 16
Email: info@elephanttalk.com
http://www.elephanttalk.com

Or

Investor Relations:
Alliance Advisors for Elephant Talk
Thomas Walsh
Tel: 212-398-3487
twalsh@allianceadvisors.net

SOURCE Elephant Talk Communications, Inc.

Mr. Steven van der Velden of Elephant Talk Communications, Inc.,
+31-20-653-59-16, info@elephanttalk.com; or Investor Relations, Thomas Walsh
of Alliance Advisors for Elephant Talk, +1-212-398-3487,
twalsh@allianceadvisors.net