Fusion Notifies NYSE Amex of Its Intention to Voluntarily Delist

Fusion Notifies NYSE Amex of Its Intention to Voluntarily Delist From the

  PR Newswire

  NEW YORK, May 29

NEW YORK, May 29 /PRNewswire-FirstCall/ -- Fusion (NYSE Amex: FSN) today
announced that it has notified the NYSE Amex Exchange of its intention to
voluntarily withdraw its securities from listing on the NYSE Amex Exchange and
to de-register from Section 12(b) of the Exchange Act. The Company intends to
file a notification on Form 25 with the Securities and Exchange Commission
after ten days pursuant to Rule 12d2-2 of the Securities Exchange Act of 1934.
It is expected that the delisting will become effective ten days following the
filing of the Form 25, and that Section 12(b) deregistration will become
effective 90 days after filing. The Exchange had previously notified the
Company of its intent to delist the Company's securities due to non-compliance
with Sections 1003(a)(i), (a)(ii), (a)(iii), a(iv) and 1003(f)(v) of the
Company Guide. However, the decision of an appeals panel who heard the
Company's appeal of the Exchange's notice stayed delisting, subject to the
Company's timely achievement of certain milestones established by the panel.

Notwithstanding the Company's intention to delist from the NYSE Amex Exchange
and to de-register from Section 12(b) of the Exchange Act, the Company intends
to continue to file periodic reports (e.g., 10-K, 10-Q, 8-K) under the
Exchange Act.

The Company decided to withdraw its securities from listing on the Exchange
and to de-register from Section 12(b) of the Exchange Act for the following

        a)  The costs to the Company to remain listed on the Exchange have
            become overly burdensome given the Company's mandate to
            achieve profitability through the continued reduction of
            expenses other than those required to manage and grow
            its core business.
        b)  While the Company was committed to achieving the Panel's
            milestones for continued listing on the Exchange, and has made
            substantial progress in meeting the Panel's requirements, the
            Company has determined that it must focus its resources on its
            initiatives to reach profitability, and in so doing may not be
            able to achieve all of the Panel's milestones within the
            required timeframe.
        c)  The Panel has indicated that it would not consider an extension
            of time in which to achieve the milestones.
        d)  In the absence of a listing on a national securities exchange,
            the Company does not qualify for continued registration under
            Section 12(b) of the Exchange Act.

The Company has applied to FINRA for its securities to be quoted on the Over
the Counter Bulletin Board and its application is currently pending. The
Company looks forward to listing of its securities on the OTCBB; however,
there is no assurance that its listing application will be approved. The
Company anticipates that following delisting from the NYSE Amex, its
securities will trade in over the counter markets without interruption.

Commenting on the voluntary action, Matthew Rosen, Chief Executive Officer,
said, "We believe that our decision will result in significant cost savings
and is part of our ongoing commitment to reduce expenses as we work toward
achieving profitability. The Company is dedicated to maintaining complete
transparency in all aspects of the business and will continue to file SEC
reports so that shareholders will be fully informed. Further, the Company
intends to maintain an independent Board of Directors and independent Audit,
Compensation and Nominating Committees to ensure appropriate corporate
governance. Fusion is firmly focused on building its core business and looks
forward to improved results in the months ahead."

About Fusion:

Fusion is a new breed of communications carrier, dedicated to providing a full
range of advanced, IP-based voice and data solutions to corporate and carrier
customers worldwide. The Company provides hosted IP-PBX applications, SIP
trunking services, voice traffic termination, private networks, Internet
access and a full suite of enhanced features and services.

For more information, please go to http://www.fusiontel.com

Statements in this Press Release that are not purely historical facts,
including statements regarding Fusion's beliefs, expectations, intentions or
strategies for the future, may be "forward-looking statements" under the
Private Securities Litigation Reform Act of 1995. All forward-looking
statements involve a number of risks and uncertainties that could cause actual
results to differ materially from the plans, intentions and expectations
reflected in or suggested by the forward-looking statements. Such risks and
uncertainties include, among others, introduction of products in a timely
fashion, market acceptance of new products, cost increases, fluctuations in
and obsolescence of inventory, price and product competition, availability of
labor and materials, development of new third-party products and techniques
that render Fusion's products obsolete, delays in obtaining regulatory
approvals, potential product recalls and litigation. Risk factors, cautionary
statements and other conditions which could cause Fusion's actual results to
differ from management's current expectations are contained in Fusion's
filings with the Securities and Exchange Commission and available through

(Logo: http://www.newscom.com/cgi-bin/prnh/20050705/NYTU073LOGO )

    FUSION      Philip Turits, Treasurer
    CONTACT:    212-201-2407

                Damon Testaverde, Managing Director
                Network 1 Financial Securities


Website: http://www.fusiontel.com
Contact: Philip Turits, Treasurer of Fusion, +1-212-201-2407,
pturits@fusiontel.com; or Damon Testaverde, Managing Director of Network 1
Financial Securities, +1-732-758-0991, ddtestaverde@netw1.com
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