Momentum Telecom to Acquire Alteva

BIRMINGHAM, AL and PHILADELPHIA, PA--(Marketwired - Sep 3, 2015) - Momentum Telecom, Inc. ("Momentum Telecom") and Alteva, Inc. ("Alteva") (NYSE MKT: ALTV) announced that they have entered into a definitive agreement under which Alteva will be acquired by Momentum Telecom for a total equity purchase price of $28.7 million (the "Merger").

Upon the closing of the Merger, shareholders of Alteva will receive $4.70 per common share, which represents a premium of 31% based on the closing price of Alteva's stock on September 2, 2015 and 38% based on Alteva's 20-day average price.

The combination of Momentum Telecom and Alteva:

• Builds on each company's expertise in delivering best-in-class unified communications services
• Enhances the reach of the sales and marketing initiatives
• Strengthens the ability to support new and existing customers
• Increases Momentum Telecom's number of users to over 250,000

Bill Fox, President and Chief Executive Officer of Momentum Telecom, commented, "The combined strengths of these two companies further enhance Momentum Telecom as a market leader in the VoIP and unified communications industry. Alteva shares our dedication to providing top-notch reliability and service to its customers. We are excited about the opportunity to invest in and grow upon Alteva's success and significantly expand Momentum's presence in the Northeast. With the merger, customers will continue to experience the high quality products, service and support that they count on from Alteva and Momentum today."

Brian J. Kelley, Chief Executive Officer of Alteva, commented, "After a comprehensive evaluation of strategic alternatives, which included the payment of a dividend of $2.60 per common share on June 30, 2015, our Board of Directors concluded that combining with Momentum Telecom represents the best opportunity to realize immediate, substantial value for our shareholders. In the past year it has become exceedingly clear that profitability in the VoIP space requires significant scale to achieve maximum efficiency. As the industry grows, so does the competitive landscape. The control of selling expenses and the achievement of operating efficiencies depend on scale. Momentum Telecom and Alteva together constitute the most viable solution toward achieving these goals and benefitting our employees, customers and partners."