Exhibit 99.2

[Logo of Log On America]                        Contact:
                                                David Paolo
                                                Log On America, Inc.
                                                settlement@loa.com
                                                www.loa.com

For Immediate Release
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Log On America Settles with its Remaining Preferred Holder

PROVIDENCE, R.I., February 8, 2002 /PRNewswire/ -- Log On America, Inc. (OTC
Bulletin Board: LOAX.OB - www.loa.com), which earlier today announced the
settlement of its litigation with Promethean Asset Management L.L.C. and HFTP
Investments, also announced today that it has entered into a settlement
agreement, which settled all claims with the remaining holders of its Series A
Convertible Preferred Stock and their affiliates (the "Remaining Holders"). This
settlement repairs the capital structure of Log On America (the "Company"),
preserves shareholder value, and will allow the company to put its complete
attention to growing its business.

Pursuant to the settlement with the Remaining Holders, the Company will pay the
following amounts and issue the following Promissory Note and Convertible
Preferred Stock to them: (1) the sum of $500,000 within three business days of
the execution of formal settlement documents, which is expected to occur on or
about February 28, 2002; (2) $250,000 on or about May 1, 2002; (3) $500,000 on
or about August 1, 2002, plus interest at 8% per annum; (4) on or about February
28, 2002, the Company will execute a three year Promissory Note (the "Note")
payable to the Remaining Holders in the amount of $1,750,000, which will bear
interest in the amount of 9% per annum, paid semi-annually; (5) on or about
February 28, 2002, the Company will issue 500,000 shares of its common stock to
the Remaining Holders from a partial conversion of the Series A Preferred Stock
according to its terms and the balance of the Series A Preferred Stock will be
exchanged for the Series C Convertible Preferred Stock described below; and (6)
the Company will issue Series C Convertible Preferred Stock to the Remaining
Holders with a face value of $1,725,000, repayable in three years in cash or
stock at the Company's election, with a conversion price of $1.25 per share and
bearing interest at 9% payable semi-annually. In the event that the Company
fails to make any of the payments under (1), (2), (3) or (4) within five
business days after notice of a default in payment, judgment may be entered
against the Company and in favor of the Remaining Holders in the amount of
$5,752,775 less any payments made by the Company in accordance with the above
provisions.

David R. Paolo, the Company's Chairman and CEO, stated: "We are pleased to have
fully and finally resolved our disputes with the Remaining Holders. After
investigation, we concluded that the Company's factual allegations against the
Remaining Holders, including their affiliates and employees, could not be
substantiated and, as a result, we believed it was appropriate to enter into the
Settlement Agreement."

Mr. Paolo continued: "This agreement brings final rest to the capital structure
problems that have plagued Log On America over the past 2 years.

                                     -more-

Log On America will now have a finite capital structure of approximately
12,000,000 shares including conversion of all classes of Preferred Stock and
long-term debt of approximately $6,600,000."


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About Log On America

Log On America is a full service provider of business communication
technologies. We deliver a unique end-to-end customer experience from
consultation through professional managed services. Our core services include:
Business Telephone & Voicemail Systems, Dial-up & High-speed Internet Access,
Website Creation & Hosting, Integrated Voice & Data Services, Server
Collocation, Niche ASP Applications, Managed Service Level Agreements, and
Network Consultancy, Architecture & Implementation (LAN,WAN,VPN). Our expertise
lies in a wide array of business communication solutions all of which may be
customized and scaled to the specific needs of your business today and in the
future.

Forward-looking Statements

Statements made in this news release, may contain forward-looking statements
concerning our business and products. Our actual results may differ materially
depending on a number of risk factors including, but not limited to, the
following: general economic and business conditions, development, shipment,
market acceptance, additional competition from existing and new competitors,
changes in technology, and various other factors beyond our control. Other risks
inherent in our business are described in our Securities and Exchange Commission
filings, including our most recently filed Forms 10KSB and 10QSB. We undertake
no obligation to revise or update any forward-looking statements to reflect
events or circumstances after the date of this release.

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