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MISSISSAUGA, ONTARIO--(Marketwire - June 29, 2010) - Phonetime Inc. (the "Company") (TSX:PHD) announced that it has completed a two year subordinated debenture with Bridge Capital Corp. for a principal amount of $805,000. The debenture bears interest at 14.5% and include three classes of warrants: the first is for 161,000 two-year warrants with an exercise price of $0.15 per share; the second is a one-year full warrant for each dollar of debt with an exercise price of $0.20; and the third is a two-year full warrant for each dollar of debt with an exercise price of $0.30. The Loan must be repaid in conjunction with the sale of the Company's retail business at a rate of $200,000 per month commencing 30 days following the initial closing of the sale of the retail business. Proceeds of the debenture financing have been used to settle existing obligations of the Company.

About Phonetime Inc.

Phonetime is an international telecommunications Network carrier. Phonetime provides long-distance services to major telephone carriers around the world. Phonetime's common shares trade on the Toronto Stock Exchange under the symbol PHD. More information can be found at the Company's website, [ www.phonetime.com ].

Caution Regarding Forward Looking Information:

This press release contains forward-looking statements, which may be identified by words like "expects", "anticipates", "plans", "intends", "indicates" or similar expressions. These statements are not a guarantee of future performance and are inherently subject to risks and uncertainties. Phonetime's actual results could differ materially from those currently anticipated due to a number of factors set forth in reports and other documents filed by the Company with Canadian securities regulatory authorities from time to time.