Up: Microsoft Word - PHONNE~1.DOC PHON-NET ANNOUNCES STRATEGIC ALLIANCE WITH VIRTUAL MERCHANT INC Phon-net through BCDONLINE, has formed a strategic alliance with Virtual Merchant, Inc., a national leader in providing merchant services and e-commerce solutions, to provide online merchants with a complete internet marketplace solution, Web Design, Hosting, Internet Access, Merchant Accounts (accepting credit card payments ), Online Processing (of credit card and check payments), Virtual Mall, and Phon-net's Direct Connect. Virtual Merchant's extensive technology experience and marketing capabilities, coupled with there merchant services and online processing prowess has created one of the most powerful resources available to internet merchants. "When you add Phon-net Direct Connect to that mix, the merchant has the most complete solution available today." Stated Virtual Merchant. Direct Connect now makes it possible for a customer to speak with a merchant at the same time they are visiting that merchants website. Direct Connect is the ideal product for merchants that thought they could use a presence on the world wide web either because they don't sell on-line or because they don't have time and resources to monitor e-mails. A web presence now means the merchants potential customers can find them on the internet and then call the merchant without having to go off line. Small businesses with limited budgets and personnel can now reach around the globe and compete the bigger rivals. Virtual merchant offers merchants the most advanced on-line processing programs and the opportunity to secure merchant accounts. Merchant Accounts are the means by which merchants are able to accept credit card payments from their customers. Accepting credit cards, particularly on-line, has proven to be indispensable for merchants who want to grow and prosper on the internet. For additional information on virtual merchant visit them at their website, www.virtualmerchant.com Phon-Net Investor relations can be reached at 800-441-6584. If you have a website you need "Direct Connect" Try it today.