ELCOTEL TO PROVIDE NEW DESKTOP TERMINAL SERVICES                
                        (PR Newswire; 05/26/99)                        

              Company Forms Exclusive Alliance With CHS

 SARASOTA, Fla., May 26 /PRNewswire/ -- Elcotel, Inc. (Nasdaq: ECTL) announced 
today that it has formed an alliance with Caribbean Hotel Services, Inc. (CHS), 
a privately held company based in Delray Beach, Florida, to begin offering 
telephone and video advertising services in a new line of public access desktop 
terminals to be marketed worldwide.

The alliance with CHS gives Elcotel the opportunity to respond to both consumer 
demand for better quality of service and customer need for greater revenues 
from public access terminals for indoor locations, such as airline and hotel 
lounges, convention centers and clubs.  In addition to integral video display, 
these new terminals will provide consumers with a broader range of long-
distance and operator assistance services, available through Elcotel Coinless 
Services, combined with the convenience of credit card payment options.

Elcotel and CHS are currently completing the design and initial production of 
these patent-pending terminals, which will be introduced in customer trials 
this summer, and offered for full operational deployment later this year. Each 
public access desktop terminal will generate additional revenues from video 
displays, which convey advertising content to consumers either on or near the 
phone.  In partnership, the two companies will be providing the advertising 
content management, card management, and network management services required 
to support the successful deployment of these terminals.

"Our back-office systems will use the Internet to deliver advertising content, 
card verification and transaction, and maintenance service information to each 
desktop terminal on a per-terminal and per-location basis anywhere in the 
world," said David Hemmings, Elcotel's Senior Vice President of Business 
Development.

"We have established an exclusive service provider and terminal production 
relationship with Elcotel to improve our time-to-market and expand our 
opportunities to deliver video advertising content revenues to our prospective 
customers in the world market," commented David Grabowski, President of CHS. 
"This alliance will provide our customers with new revenue sources, and offer 
Elcotel and CHS the opportunity to participate in new growth applications in 
the public access telecommunications industry, domestically and 
internationally," continued David Hemmings.

Elcotel, Inc., based in Sarasota, Florida, designs, develops, manufactures and 
markets state-of-the-art microprocessor-based public communications products 
and software that provide service over both domestic and international wireline 
and wireless telephone networks. Elcotel is a leader in sales of microprocessor-
based payphone products to domestic private payphone operators and publicly 
regulated telephone companies and provides complete public communications 
solutions for its domestic and international markets.  Visit Elcotel's 
corporate website at www.elcotel.com

Statements contained in this release may contain forward-looking information 
regarding the Company's plans, projections, or future performance, which 
involve certain risks and uncertainties that could cause the Company's actual 
results to differ materially from those expected by the Company.  These risks 
and uncertainties include the risk of adverse regulatory action affecting the 
Company and the Company's customers, risk of competition, risk of obsolescence 
of the Company's products, and other uncertainties detailed in the Company's 
filings with the Securities and Exchange Commission.  SOURCE  Elcotel, Inc.

© 1998 Kiosks.Org.
All Rights Reserved.