EXHIBIT 99.2
INCOMNET

FOR IMMEDIATE RELEASE
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For more information, contact:
    George Blanco
    Incomnet, Inc.
    (949) 224-7575

                  INCOMNET ANNOUNCES THE ASSIGNMENT OF INCOMNET
               COMMUNICATIONS CORPORATION'S DEBTOR-IN-POSSESSION
               FINANCING AND A COURT EXTENSION TO FILE A PLAN OF
                                 REORGANIZATION

IRVINE, Calif.--(BUSINESS WIRE)--January 3, 2000
Incomnet, Inc. (ICNTE) and its wholly owned subsidiary, Incomnet Communications
Corporation, an Orange County based sales and marketing company providing
innovative cost-saving communications and internet related services, today
announced certain important developments. As previously announced, on September
2, 1999, Incomnet, Inc. and its wholly owned subsidiary Incomnet Communications
Corporation each filed for voluntary petitions for protection under Chapter 11
of the Federal Bankruptcy Code in the United States Bankruptcy Court for the
Central District of California, Santa Ana Division

FOOTHILL CAPITAL CORPORATION DEBTOR-IN-POSSESSION FINANCING ASSIGNMENT TO
IRONWOOD TELECOM LLP
Incomnet Communications Corporation (ICC) received court approval for the
assignment of ICC's debtor-in-possession financing from Foothill Capital
Corporation ("Foothill") to Ironwood Telecom LLP ("Ironwood"), Incomnet, Inc.'s
largest secured creditor. ICC will be obligated under substantially the same
financing terms with Ironwood as it was with Foothill. The assumption by
Ironwood allows ICC more time to execute its reorganization efforts in the
coming months. George Blanco, ICC's Chief Operating Officer, said, "Foothill has
been a very important partner in ICC's reorganization efforts. We have
maintained a very positive relationship with Foothill and greatly appreciate
their spirit of cooperation and support during this process."

EXTENSION TO FILE A PLAN OF REORGANIZATION WITH THE BANKRUPTCY COURT
Incomnet, Inc. and ICC each received court approval to extend to January 31,
2000 their respective deadlines for filing each company's own plan of
reorganization with the bankruptcy court. George Blanco said, "The extension
will allow Incomnet, Inc.'s and

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ICC's senior management additional time to develop appropriate reorganization or
other plans for Incomnet, Inc. and ICC."


          NOTICE REGARDING FORWARD-LOOKING STATEMENTS IN PRESS RELEASE

This press release contains certain forward-looking statements within the
meaning of Section 27A of the Securities Act of 1933 and Section 21E of the
Securities Exchange Act of 1934. The company intends that such forward-looking
statements be subject to the safe harbors created by such statutes. The
forward-looking statements included herein are based on current expectations
that involve a number of risks and uncertainties. Accordingly, to the extent
that this press release contains forward-looking statements regarding the
financial condition, operating results, business prospects or any other aspect
of the company and its subsidiaries, please be advised that the company and its
subsidiaries' actual financial condition, operating results and business
performance may differ materially from that projected or estimated by the
company in forward-looking statements. The differences may be caused by a
variety of factors, including but not limited to adverse economic conditions,
intense competition, including intensification of price competition and entry of
new competitors and products, adverse federal, state and local government and
agency regulation, inadequate capital, unexpected costs and operating deficits,
increases in general and administrative costs, lower sales and revenues than
forecast, loss of customers, loss of suppliers, technical problems with the
company's operations, failure to obtain new customers, litigation and
administrative proceedings involving the company, the possible acquisition of
new businesses that result in operating losses or that do not perform as
anticipated, resulting in unanticipated losses, inability of the company to
continue as a going concern, adverse publicity and news coverage, inability to
carry out marketing and sales plans, loss of key executives, loss of independent
sales representatives and other specific risks that may be alluded to in this
press release or in other reports issued by the company. The inclusion of
forward-looking statements in this press release should not be regarded as a
representation by the company or any other person that the objectives or plans
of the company will be achieved.


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