Elephant Talk Communications, Inc. Agrees to Acquire 100% of ValidSoft Limited

SCHIPHOL, THE NETHERLANDS, Nov 02 (MARKET WIRE) --
Elephant Talk Communications, Inc. (OTCBB: ETAK), an international
telecom and multimedia content distributor, today announced the execution
of a heads of terms agreement with ValidSoft Limited which provides
financial institutions with identity verification, fraud prevention and
false positive reduction for credit and debit card users, Point of Sale
transactions, Card Not Present transactions (Internet), Internet Banking
and Remote Access using patented software solutions which interact with
the users of a mobile device. The heads of terms agreement sets forth the
terms and conditions whereby Elephant Talk will purchase all of the
issued and outstanding securities of ValidSoft and the transaction is
subject to the execution and consummation of a definitive agreement which
shall contain provisions customary in such type of transactions.

Upon the execution and consummation of a definitive agreement, the
transaction is expected to allow ValidSoft to leverage Elephant Talk's
strong international telecommunications platform to assimilate and
distribute their proprietary software solutions to protect users from
financial fraud while offering additional unique product offerings based
on Elephant Talk's Mobile Virtual Network Enabler platform (MVNE)
technologies and converging telecommunications technologies including
Long Term Evolution, Wi-Fi, WiMax and Digital Enhanced Cordless
Telecommunications.

ValidSoft's patented and patent pending software is based on detecting
real time electronic fraud, minimizing false positives and resolving
fraudulent transactions in a fully automated manner while protecting the
privacy of the individual. False positives often result in the denial of
legitimate transactions which the company believes to be one of the
leading reason for customer dissatisfaction with their bank and increased
processing costs for the financial institutions. Due to ValidSoft's
ability to detect electronic fraud and eliminate an estimated 95%+ of
false positives, the software is expected to offer issuing banks and
institutions significant operational cost savings, high customer
satisfaction, greater customer protection, higher transaction completion
and significantly reduced fraud.

Mr. Steven van der Velden, Chief Executive Officer of Elephant Talk
Communications, states, "The combination of ValidSoft's paradigm shifting
software, deep-rooted relationships with Fortune 500 companies and
knowledgeable management team coupled with Elephant Talk's premier
telecommunications infrastructure is expected to create one of the
strongest anti-fraud solution on the market. The addition of ValidSoft to
Elephant Talk's platform of service offerings will provide the company
with a distinct advantage over our competitors. We will aggressively
target major banks, financial institutions and government agencies in
order to implement our revolutionary approach to controlling worldwide
card fraud." Mr. van der Velden further states, "Elephant Talk believes
that we will be fully equipped to be the global leader in fraud
prevention by utilizing our global telecommunication footprint, while we
remain focused on our ultimate goal of expanding market share in our
current offerings. Our management team believes that this is the best way
to deliver increased earnings and improved shareholder value in the near
term."

Several well-known banks have already concluded testing of ValidSoft's
software and have determined that electronic card fraud and false
positives were substantially eliminated. The company is now in
negotiations to implement its products and services with banking and
financial institutions around the world. According to Javelin Research,
it is estimated that the total cost of card fraud in the United States in
2008 cost financial institutions over $50 billion whilst Gartner Research
predicts that the loss from card related fraud will triple over the next
3 years. ValidSoft believes it possesses the solutions to assist in the
prevention of the massive losses attributable to fraud that the current
preventative technologies cannot stop.

Pat Carroll, Chief Executive Officer of ValidSoft, states, "The ownership
and management of ValidSoft believes that this combination with Elephant
Talk will allow our innovative software to be brought to the market much
more efficiently and rapidly by leveraging Elephant Talk's highly
efficient mobile networks. With our proven track record of success, via
our paid trials with major banks, we are confident that our technology can
substantially eliminate bank fraud and identity theft, 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 partnership will help us achieve that goal."

ValidSoft's capability is based on 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 a high level of security up to
non-repudiation level where required, based on the banks risk policies.

Mr. Martin Zuurbier, Chief Technology Officer of Elephant Talk, adds,
"ValidSoft's technology will be successfully integrated into the Elephant
Talk platform and the new technology is expected to allow Elephant Talk to
present our rapidly expanding customer base with essential proprietary
software solutions to combat the global epidemic of fraud. In addition to
reducing card fraud and assisting banks to efficiently manage overhead
costs associated with false positives for banking institutions and
government agencies, it is expected that ValidSoft will offer new exciting
solutions to our users such as secured Mobile Banking, Business Process
Automation and other innovative solutions. These new product offerings are
expected to attract new users, increase market share and expand our global
footprint."

About Elephant Talk Communications, Inc.

Elephant Talk 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 one of 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.

About ValidSoft Limited

ValidSoft (www.validsoft.com) is an Irish software engineering company
that develops security software solutions to help global institutions
counter the most sophisticated card and electronic fraud consistent with
leading independent research thinking. ValidSoft solutions are at the
cutting edge of the market and are used to verify the authenticity of
both consumers and institutions (Mutual Authentication), and the
integrity of online transactions (Transaction Verification) for the mass
market, in a highly cost effective and secure manner, yet easy to use and
intuitive. The ValidSoft Security Model is a very strong security model
and has been independently reviewed by Professors Fred Piper and Andreas
Fuchsberger of the Royal Holloway, University of London, one of the
foremost security institutions in the world.

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. Readers should review carefully reports or
documents the company files periodically with the Securities and Exchange
Commission.

Contact

Elephant Talk Communications, Inc.
Mr. Steven van der Velden
Tel: + 31 20 653 59 16
E-mail: Email Contact
http://www.elephanttalk.com

Or

Alliance Advisors, LLC
Mr. Thomas Walsh
Tel: (212) 398-3487
E-mail: Email Contact

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