Preferred Voice, Inc. Reports Significant Increase in Revenues for the Quarter Ended December 31, 2001 (Third Quarter of Fiscal Year 2002)

Net Loss Continues To Improve as Quarterly Revenue More Than Doubles

DALLAS, TX. January 30, 2002 /PRNewswire/ -- Preferred Voice, Inc. (OTC Bulletin Board: PFVI), a leading voice recognition technology company, today announced that its financial results for the third quarter of fiscal year 2002 were marked by significant revenue growth. Revenues for the third quarter of fiscal 2002 increased substantially over the same period of fiscal 2001, totaling $565,400 and $8,500, respectively. Preferred announced a net loss of ($781,000), or ($0.05) per common share, for the three months ended December 31, 2001, compared with a loss of ($1,032,000) or ($0.07) per common share, for the three months ended December 31, 2000. Revenues for the third quarter of fiscal 2002, ending December 31, 2001, increased 168% to $565,400 from $211,000 reported in the second quarter of fiscal year 2002. Additionally, the Company announced that expenses were reduced by 11% for the same period. As a result, EBITDA (earnings before interest, taxes, depreciation and amortization) was a loss of ($681,250) for the third quarter of fiscal 2002 compared to a loss of ($1,033,500) in the second quarter of fiscal 2002, a 34% increase. For the nine months ended December 31, 2001, Preferred had revenues of $860,500 and a net loss of ($2,952,000) or ($0.18) per common share, compared with revenues of $66,650 and a net loss of ($2,840,000), or ($0.21) per common share, for the corresponding period in fiscal 2001.

The Company also reported that it has now completed carrier switch installations in 23 service areas under 14 of its previously announced agreements. These 14 carriers have over 1.7 million subscribers. Currently, the Company is receiving revenues from an aggregate of approximately 110,000 users under 10 of these agreements. The Company has scheduled carrier switch installations to be completed in 14 additional service areas within the next three months under five of its previously announced agreements. These carriers have an additional 500,000 subscribers. The Company reports consistent growth in its Voice-Activated Dialing (VAD) revenue and expects that its two new services, BusinessConnectsm and Network Services, will add to net revenues later this fiscal year.

"This is the second quarter in a row that we have more than doubled revenues," commented Bill Schereck, President and COO for Preferred Voice, "With the successful deployment of our new BusinessConnectsm and Network Services scheduled for next quarter, we hope to accelerate even that rate of growth."

Certain financial information with respect to the quarter ended December 31, 2001 is set forth below. More information and unaudited financial statements covering the 3 months and 9 months ended December 31, 2001 will be set forth in the Company's 10-QSB filings with the Securities and Exchange Commission (SEC), which will also be posted on the Company's website www.preferredvoice.com.

	Three Months Ended December 31, (unaudited)					Nine Months Ended December 31, (unaudited)
	2001		2000		2001			2000
Sales	$ 565		$ 9		$ 861			$ 67
Cost of Sales	194		20		268			80
Gross Profit (loss)	$ 371		$ (11)		$ 593			$ (13)
Costs and expenses:
Selling, general and
administrative expenses	$ 1,150		$ 1,020		$ 3,541			$ 2,824
Interest expense	2		1		4			3
Total costs and expenses	$ 1,152		$ 1,021		$ 3,545			$ 2,827
Loss from operations	$ (781)		$(1,032)		$(2,952)			$(2,840)
Other income (expense):
Loss from sale of assets	0		0		0			0
Loss from operations before
income tax and extraordinary item	$ (781)		$(1,032)		$(2,952)			$(2,840)
Provision for income taxes	0		0		0			0
Net loss	$ (781)		$(1,032)		$(2,952)			$(2,840)
Per share amounts:
Net loss per share	$ (0.05)		$ (0.07)		$ (0.18)			$(0.21)

	December 31, 2001 (unaudited)		December 31, 2000 (unaudited)
Assets
Current assets:
Cash and cash equivalents	$ 2,347		$ 1,018
Accounts receivable, net of allowance for
doubtful accounts of $-0- and $-0-, respectively	204		8
Employee Advances	1		1
Inventory	0		48
Prepaid Expenses	0		761
Total current assets	$ 2,552		$ 1,836
Property and equipment:
Computer equipment	$ 1,479		$ 751
Furniture and fixtures	42		43
Office equipment	63		60
Computer software	0		682
	$ 1,584		$ 1,536
Less accumulated depreciation	342		444
Net property and equipment	1,242		$ 1,092
Other assets:
Capitalized software development costs, Net of accumulated amortization of $520,798 and -0-, respectively	$ 382		$ 0
Deposits	23		90
Patents and trademarks - net	53		48
Deferred stock issuance costs	0		0
Total other assets	$ 458		138
Total assets	$ 4,252		$ 3,066
	December 31, 2001 (unaudited)		December 31, 2000 (unaudited)
Liabilities and stockholder's equity
Current liabilities
Accounts payable	$ 278		$ 178
Accrued payroll and payroll taxes	2		2
Accrued interest payable	41		43
Accrued operating expenses	134		22
Accrued vacation	21		27
Customer deposits	554		342
Current maturities of long-term debt	20		30
Note payable	51		51
Total current liabilities	$ 1,101		$ 695
Long-term liabilities:
Notes payable - related parties	$ 0		$ 0
Long-term debt, net of current maturities	50		0
Total long-term liabilities	$ 50		$ 0
Stockholders' equity (deficit):
Common stock, $0.001 par value;
50,000,000 shares authorized; shares issued 18,389,689 and 14,780,086, respectively	$ 18		$ 15
Additional paid-in capital	17,709		12,127
Accumulated deficit	(14,624)		(9,769)
Treasury stock - 22,500 and 385,224
Shares, at cost respectively	(2)		(2)
Total stockholders' equity	$ 3,101		$ 2,371
Total liabilities and stockholders' equity	$ 4,252		$ 3,066

About Preferred Voice

Based in Dallas, TX, Preferred Voice, Inc. (OTC BB: PFVI) is a leading voice recognition technology company. Through its Carrier Services Group, Preferred Voice markets its products and services to wireless, ILEC and CLEC companies across the United States. These enhanced voice services include Safety Talk voice activated dialing, voicemail navigation, VAC voice accessed content, voice calling cards, BusinessConnectsm voice directory assistance and EmmaPR voice telephone receptionist. Preferred Voice's Network Services Group provides carrier connectivity, call management, provisioning and service delivery solutions for carriers, voice portal providers, wireless application providers and other enhanced features providers. Preferred Voice has signed agreements with 45 telecom carriers. These telecom carriers serve more than 5.5 million subscriber lines in 36 states. For more information please visit www.preferredvoice.com.

SOURCE: Preferred Voice, Inc.

This press release contains forward-looking statements. Since all statements about Preferred Voice's plans, estimates and expectations are based on current projections that involve risks and uncertainties, and are subject to change at any time, the company's actual results may differ materially from expected results. Readers should consider these risks and uncertainties, which are discussed in documents filed by Preferred Voice, Inc., with the Securities and Exchange Commission. These documents identify important factors that could cause the actual results to differ materially from those contained in the forward-looking statements. Preferred Voice, Inc. expressly disclaims any obligation to update any forward-looking statements.

Company Contact:
Bill Schereck
President / COO
(214) 265-9580
wschereck@preferredvoice.com

Agency Contact:
Ira Weingarten
Equity Communications
(805) 897-1880