TeleSphere Announces Investment by Hawkeye Capital.

Investment Firm Headed by Telecom Veteran John Chapple

Investment Partner Adds to Growing List of 'Smart' Telecom Money Backing TeleSphere

PHOENIX -- TeleSphere, a Phoenix-based managed telecommunications and Internet services

provider, announced today that Hawkeye Capital, LLC, a venture capital firm led by well known telecom executive John Chapple, has made an investment of an undisclosed amount in the company. Hawkeye becomes a minority shareholder in TeleSphere and Chapple will serve on the company's board of directors.

Hawkeye joins Rally Capital as another leading telecommunications venture firm that has recently invested in TeleSphere. Rally made its initial investment in TeleSphere in 2005 and has made several subsequent investments in the company during the past two years and in recent months. Dennis Weibling, President of Rally Capital, currently serves as Chairman of the TeleSphere Board of Directors.

"We are pleased to have Hawkeye's financial commitment, and are particularly thrilled to have John's involvement with the company," said Weibling. "His experience, his direction, and his successful track record of being associated with winners is a meaningful marker of the bright road ahead for this company."

TeleSphere offers a full suite of fully hosted voice telecommunications and data services that address telephony, local and wide area networking and voice and data solutions for small to medium-sized businesses by utilizing the same PBX rich feature sets that Fortune 500 companies have used in the past, but at a fraction of the cost. TeleSphere uses a centrally hosted PBX platform which can provide businesses throughout the U.S. with the latest in voice and data services without the need and cost of an on-premise PBX service.

"I have been involved in providing communications services to businesses and consumers for nearly 30 years and have personally witnessed these services become the lifeblood of businesses large and small," said Chapple. "TeleSphere's service offering has the opportunity to extend valuable business telecommunications services to the business masses. Previously, economics limited these services to select businesses that had reached a size that they could invest heavily in telecom infrastructure and support."