FOR IMMEDIATE RELEASE

                SmarTalk Completes the Sale of its Assets to AT&T

                  DUBLIN, OHIO, April 2, 1999 -- SmarTalk TeleServices, Inc.
         (OTC:SMTKQ) today announced that the acquisition by AT&T Corp. of
         substantially all of SmarTalk's assets was consummated as of March 31,
         1999. Attached is a Current Report on Form 8-K filed by SmarTalk with
         the SEC containing additional information regarding the transaction.
         Among other things, the Form 8-K indicates that, based upon currently
         available information, SmarTalk does not anticipate that the proceeds
         of SmarTalk's bankruptcy estate will be sufficient to fully satisfy the
         claims of its creditors, and thus SmarTalk does not anticipate that
         there will be funds available to permit any distribution to holders of
         SmarTalk's equity securities.

         Note: This press release contains forward-looking statements. The
         words, "believe," "expect," and "anticipate" and similar expressions
         identify such forward-looking statements. These forward-looking
         statements reflect the Company's views with respect to future events
         and financial performance. Such statements are subject to risks and
         uncertainties that could cause the Company's actual results and
         financial position to differ materially from those projected in the
         forward-looking statements. In particular, SmarTalk has not prepared
         any formal liquidation analysis based on the assets of the bankruptcy
         estate, and any such analysis would be premature at this time. Readers
         are cautioned not to place undue reliance on these forward-looking
         statements, which speak only as of their dates. The Company undertakes
         no obligation to publicly update or revise any forward-looking
         statements, whether as a result of new information, future events or
         otherwise.

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