Elephant Talk and Its ValidSoft Subsidiary Are Updated in Josh Levine's MicroCap Investor Newsletter

SCHIPHOL, THE NETHERLANDS--(Marketwire - Sep 28, 2011) - Elephant Talk Communications, Inc. (OTCBB: ETAK) (www.elephanttalk.com) has announced that reports on the company and its wholly-owned subsidiary, ValidSoft Limited (www.validsoft.com), have been updated by Josh Levine in his MicroCap Investor newsletter. The profile is available at http://www.levinesmicrocapinvestor.com/.

In his latest report, Levine focused on the recent Elephant Talk annual shareholder meeting, held on Sept. 14 in New York at which ETAK CEO Steven van der Velden and ValidSoft CEO Pat Carroll gave presentations on their respective operations.

Levine said that if there was a single message at Elephant Talk Communication's recent annual shareholder meeting, it was that the company and ValidSoft subsidiary have established strong technical foundations and favorable partnerships with multinational telecom and financial firms.

He also noted that the Elephant Talk and ValidSoft businesses are modeled on recurring revenues. Elephant Talk and ValidSoft solutions enable their major customers to:

1. Shift investment from capital expenditures to the operational side, enabling them to free up resources;

2. Move from fixed to variable costs, preferring "pay as you go" arrangements; and

3. Replace overly complex and partial solutions with one-stop-shop solutions.

Levine said that Elephant Talk is targeting the market for companies to become virtual mobile operators. There will soon be close to 8 billion handset SIM's and approximately 50 billion machine-to-machine SIM's around the globe, Levine said.

As an enabler of mobile network operators, Levine said, Elephant Talk will, on average, charge $1 per month per subscriber. The company expects to have one million SIM cards in operation at the end of 2011. Levine also described ValidSoft's revenue model, which is based on payments per transaction.

ValidSoft offers a comprehensive solution for securing the mobile cloud and a range of financial transactions, which Levine said currently includes 350 billion transactions per year, which management expects to increase when near-field communications ("NFC") technology is widely implemented.

ValidSoft's anonymous, encrypted service has received the European Privacy Seal (EuroPriSe). Among its partnerships, ValidSoft has a contractual agreement with Visa Europe for the provision of its fraud-prevention solutions, VALid-POS®, a sophisticated card fraud detection and prevention solution, and VALid®, ValidSoft's multi-factor authentication platform. The agreement allows Visa Europe to integrate and market the solutions as services to its member banks as part of its European processing platform.

Other highlights from the Elephant Talk presentation to shareholders at the annual meeting included an increase in revenues for Elephant Talk's mobile and cloud security services; an agreement between Elephant Talk and Your Card B.V., a Mobile Virtual Network Operator (MVNO) serving the Dutch market; and, a joint venture with MECO Holding AG (www.mecogroups.com) to launch mobile virtual network enabler (MVNE) platforms in the UK, Europe, and Canada.

About Elephant Talk Communications
Elephant Talk Communications, Inc. (OTCBB: ETAK) is an international provider of business software and services to the telecommunications and financial services industry. The company enables both mobile carriers and virtual operators to offer a full suite of products, delivery platforms, support services, superior industry expertise and high quality customer service without substantial upfront investments from clients. Elephant Talk provides global telecommunication companies, mobile network operators, banks, supermarkets, consumer product companies, media firms, and other businesses a full suite of products and services that enables them to fully provide telecom services as part of their business offerings. The company offers various dynamic products that include remote health care, credit card fraud prevention, mobile internet ID security, multi-country discounted phone services, loyalty management services, and a whole range of other emerging customized mobile services. For more information, visit (www.elephanttalk.com).

About ValidSoft
ValidSoft is a subsidiary of Elephant Talk Communications, Inc. (OTCBB: ETAK) (www.elephanttalk.com) and is a market leader in providing solutions to counter electronic fraud relating to card, the internet, and telephone channels. ValidSoft's solutions are at the cutting edge of the market and are used to verify the authenticity of both parties to a transaction (Mutual Authentication), and the integrity of the transaction itself (Transaction Verification) for the mass market, in a highly cost effective and secure manner, yet easy to use and intuitive. For more information, please visit (www.validsoft.com).

Forward-Looking Statements
Certain statements contained herein constitute "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. These forward-looking statements are based on current expectations, estimates and projections about the Company's industry, management's beliefs and certain assumptions made by management. Readers are cautioned that any such forward-looking statements are not guarantees of future performance and are subject to certain risks, uncertainties and assumptions that are difficult to predict. Because such statements involve risks and uncertainties, the actual results and performance of the Company may differ materially from the results expressed or implied by such forward-looking statements. Given these uncertainties, readers are cautioned not to place undue reliance on such forward-looking statements. Unless otherwise required by law, the Company also disclaims any obligation to update its view of any such risks or uncertainties or to announce publicly the result of any revisions to the forward-looking statements made here; however, readers should review carefully reports or documents the Company files periodically with the Securities and Exchange Commission.