Metro One Telecommunications, Inc. the renowned developer and provider of Enhanced Directory Assistance® (“EDA”) and other telecom services, today announced here that it had reached an agreement in principle with two of its largest shareholders, Columbia Ventures Corporation and Everest Special Situations Fund L.P. It has been stated, that the agreement has been inked for the emergence of up to $10 million of a new series of convertible preferred stock, along with warrants for the sake of purchasing convertible preferred stock, in a private placement transaction. It has moreover been avowed that the transaction is subject to the completion of definitive documents and necessary board and shareholder approvals, if there is the need of any. In addition, the net proceeds are to be used for general corporate purposes.

It is known that the Metro One Telecommunications, Inc. is an internationally famous developer and provider of Enhanced Directory Assistance and other information services. The Company is chiefly betrothed in the operation of call centers located throughout the length and breadth of the United States. The Company has excelled in handling over 300 million requests for information over the past two years. Metro One in the year 2005 experienced significant adversity. But it was the age-old experiences and the zeal to attain the zenith that has made the travel of the company better. In respect of the operational and financial turnaround the Company through its tried team of best professionals is now positioned on a sound basis and is moving by leaps and bounds to the accomplishment of its objectives. The foundation of this turnaround has been the consequence of the decision to return to the area of core competencies of business-to-business directory assistance services where there are two important competitive advantages. They include the provision of high quality directory assistance and information services to the subscribers of national and international repute, of wireless carriers and other telecom providers. In addition, the delivery of data services based on information derived from the updated telephone listings and other databases to companies in the service, marketing and financial sectors, has worked its magic in the further enhancement of the parent company.

According to the market review, the combination of proprietary technology, call center management experience and groundbreaking approaches to provide data services for mass marketers and others gives the Company a strong competitive advantage in the niches that are served. It is estimated that these are the completive advantages that allure the well-known shareholders.

It is anticipated that the issuance of approximately $2.2 million of convertible preferred stock with warrants in the first of a two-step closing will occur later this month, with the issuance of the balance of approximately $7.8 million of convertible preferred stock with warrants, subject to shareholder approval, occurring within the next three months.