Elephant Talk Reports Closing of Initial Corporate Restructuring

Elephant Talk Communications Corp.

("Elephant Talk" or the "Company"), a global provider of Software Defined Network Architecture (ET Software DNA® 2.0) platforms and cyber security solutions, today announced that it has completed its initial restructuring efforts as part of its strategic plan to improve operational efficiencies, increase sales efforts and reduce expenditures. The plan includes eliminating approximately $5 million in 2015 from its annual cash operating SG&A budget consisting of a reduction in staff, elimination of office locations and a focus towards securing and supporting a growing number of Mobile Network Operator (MNO) and Mobile Virtual Network Operator (MVNO) customers in the Americas, Europe, the Middle East and Asia. The Board-approved restructuring plan was the result of the need to refocus the business following the end of the Company's relationship with a large Mexican customer following its acquisition by a major U.S.-based carrier earlier this year, the subsequent financial settlement and the resulting restructuring and reduction of its outstanding debt obligations, both of which were announced recently. As part of the restructuring, the Company has divided its operations into two organizations - Delivery & Operations led by Co-President Dr. Armin Hessler and Sales & Innovation led by Co-President Martin Zuurbier. Delivery & Operations will be will be responsible for platform architecture, implementation and operations and Sales & Innovation will be responsible for all commercial activities, vendor management and R&D. With this business realignment, both divisions have made adjustments to their respective organizations to improve operational efficiencies and reduce costs. Steven van der Velden, Chairman and CEO of Elephant Talk, stated, "Today is an important milestone for Elephant Talk, one that sets the Company on a new path for growth with a refocused and dedicated sales effort supported by a more operationally efficient delivery organization. As we enter the second half of 2015, these strategic adjustments are expected to begin to show in our results delivering reduced operating costs in our third quarter and improving top line growth in our fourth quarter. We believe it will also improve our ability to provide customers with exceptional products and support in the future as we grow. Management expects that this new operating structure and increased commercial focus will allow the Company to quickly and cost efficiently scale the business as we expect to add new clients later this year." Mr. van der Velden continued, "The Company's renewed focus is targeting a global base in excess of 800 MNOs, helping them to better serve their own brands as well as their wholesale and enterprise customers in addition to the hundreds of larger Mobile Virtual Network Operators (MVNOs) brands, all of which seek cost efficiently, reliable and rapidly-deployable core network and operation support systems such as Elephant Talk's full suite of SDN and NFV-enabled platforms. Elephant Talk's sales organization which currently consists of 9 sales, channel management and sales support members, is expected to double over the next 12 month while we secure additional customers."