TRNCD Trinsic (MM)

Trinsic, Inc., (NASDAQ/SC: TRNCD), a leading provider of both traditional and IP telephony services, announced today that on September 30, 2005, all of the outstanding shares of its Series H Convertible Preferred Stock, having a liquidation preference of approximately $24 million, will convert into common stock at conversion price of $2.00 per share. The Series H Preferred Stock is held entirely by The 1818 Fund III, L.P., an investment fund managed by Brown Brothers Harriman and Co. and Trinsic's largest shareholder. The terms of the Series H Preferred Stock provide that the stock is mandatorily convertible into common stock upon the later to occur of (a) September 30, 2005, or (b) the approval of the transaction by Trinsic's shareholders. The transaction was approved by Trinsic's shareholders on September 23, 2005. The terms further provide that liquidation preference of the Series H Preferred Stock will convert into shares of Trinsic's common stock at a conversion price equal to $3.90 per share (post reverse split); provided, however, that if on or prior to September 29, 2005, Trinsic shall not have entered into a definitive agreement to acquire no less than 150,000 UNE-P subscriber lines (tested as of September 29, 2005), then the conversion price shall reduce to $2.00 per share (post reverse split). Although, Trinsic recently announced a letter of intent to acquire up to 181,000 lines from Sprint, a definitive agreement was not executed before the deadline. According to the Company, negotiations to acquire those lines are continuing and, moreover, the Company is exploring other opportunities to acquire lines and to otherwise realign its current subscriber base consistent with its strategy of focusing on certain territories. Trinsic effected a 1 for 10 reverse stock split on September 26, 2005. About Trinsic Trinsic offers consumers and businesses traditional and IP telephony services. Trinsic's products include proprietary services such as Web-accessible, voice-activated calling and messaging features that are designed to meet customers' communications needs intelligently and intuitively. Trinsic is a member of the Cisco Powered Network Program and makes its services available on a wholesale basis to other communications and utility companies, including Sprint. Trinsic, Inc. changed its name from Z-Tel Technologies, Inc. on January 3, 2005. For more information about Trinsic and its innovative services, please visit www.trinsic.com.