VSRV Voiceserve Inc (CE)

Voiceserve, Inc. (OTCBB:VSRV), a low-cost, next-generation Internet telephony software and service provider, announced an increase of 39 percent in revenues from the previous quarter.

For the three months ended June 30, 2012 and 2011 the company generated revenues of $1,381,118, and $1,172,654 respectively. The change represents an increase of $208,462 or 17.7 percent for the three months ended June 30, 2012.

The revenue increase is attributed primarily to the exposure of the company's products through exhibitions as well as the reputational success the products are having in the market place. For the three months ended June 30, 2012 and 2011 the cost of revenues were $776,868, and $736,766 respectively. The change represents an increase in cost of revenues of $40,102 or 5.4 percent for the three months ended June 30, 2012. The cost of revenue increase is attributed to the increase in clients that require servicing. Gross margin averaged 44 percent during the first quarter of fiscal year 2012 (ended June 30, 2012) compared to 37 percent during the first quarter of fiscal 2011. The increase in gross margins is due to an increase in productivity and special customisation for specific clients.

For the three months ended June 30, 2012 and 2011 the SG&A were $959,827,and $1,118,526 respectively. The change represents a decrease of $158,699 or 14.1 percent for the three months ended June 30, 2012. The decrease in SG&A was due to a lower stock based compensation cost of $394,345 in the quarter June 30, 2012 versus the quarter June 30, 2011 where the cost was $567,645. The group has not materially increased its overhead despite its customer base and revenues increasing over the quarter. The Company generated net income for the three period ending June 30, 2012 of $33,115 and compared to net loss of $1,133,580 for the three month period ended June 30, 2011. The net gain is due to the reasons described above as well as a gain of $388,625 on the revaluation of the common stock warrants. In the quarter ended June, 30 2011 there was a loss on the revaluation of the common stock warrants of $450,954. A difference of $839,579 between the two periods.

"We are seeing strong growth for our industry especially with the advancements and awareness within the mobile dialer sector. Our dialers are suitable for the full range of smart phones and remain a strong competitive differentiator for Voiceserve," said Alexander Ellinson, President of Voiceserve, Inc. "These dialers enable our customers to benefit from the vast deployment of 4G and wifi connectivity globally."

In addition to reporting strong revenue, the company also announced the appointment of North 6th Agency (N6A) as its new public relations partner for the entire North American region. N6A will work to promote Voiceserve and a wide range of its products through a strategic mix of media relations, digital communications, and consumer marketing initiatives.

About Voiceserve, Inc.

Voiceserve is a software platform provider focusing primarily on delivering affordable, complete, next generation services to Internet Telephony Providers (ITSPs). Products include VoipSwitch, a custom modular all-in-one Voice over Internet Protocol (VoIP) management platform licensing solution for resellers.

For further information please visit http://www.voipswitch.com.

Certain statements in this news release may constitute "forward-looking" statements within the meaning of section 21E of the Securities and Exchange Act of 1934. The Company believes that its expectations, as expressed in these statements are based on reasonable assumptions regarding the risks and uncertainties inherent in achieving those expectations. These statements are not, however, guarantees of future performance and actual results may differ materially. Risks and uncertainties which may cause actual results to be different than expressed or implied in our forward-looking statements include, but are not limited to, the risk factors listed in the most recent Annual Report on Form 10-K and described under the heading "Risk Factors" our Form S-1 filed December 20, 2010. The Company expressly disclaims any current intention to update any forward-looking statements as a result of new information or future events or developments.

Contacts: North 6th Agency, Inc. (for Voiceserve) 212.334.9753VoipSwitch@n6a.com