SmarTalk[tm]


                                  NEWS RELEASE

FOR IMMEDIATE RELEASE

                               Contact:    SmarTalk TeleServices
                                             Pamela Bennett
                                             Manager, Corporate Communications
                                                (614) 789-8650

                                             Fletcher Asset Management
                                             Jonathan Schindel
                                             (212) 284-4800




                     SMARTALK ANNOUNCES NEW CREDIT FACILITY


         Monday, December 7, 1998 (Columbus, Ohio): SmarTalk TeleServices,  Inc.
(Nasdaq:SMTK)  today  announced  that it has reached an agreement  with Fletcher
International  Limited for a $25 million  secured term loan  facility,  maturing
January  31,  1999.  The  Company  expects  to access up to $10  million  of the
facility  over  the  next  month,  subject  to  the  satisfaction  of  customary
conditions  to draw down.  The  Company  could  access up to an  additional  $15
million from the facility over various periods, subject to the discretion of the
lender. SmarTalk plans to use the financing for general corporate purposes.

         An affiliate of Fletcher Asset Management currently is a shareholder of
SmarTalk.  In connection  with the financing  transaction,  SmarTalk has granted
Fletcher the right to acquire,  upon  satisfaction of applicable notice periods,
up to approximately an additional 15% of the common stock of SmarTalk.

         SmarTalk  TeleServices,  Inc. is a leading  provider of prepaid calling
cards and prepaid wireless services.  Based in Dublin,  Ohio, SmarTalk maintains
distribution   agreements   with  the  U.S.  Postal  Service  and  leading  mass
merchandisers, consumer electronics retailers, supermarkets, hotels, home office
superstores  and  convenience  stores  throughout  North  America  and the  U.K.
SmarTalk also creates  promotional  card programs for  advertisers and corporate
clients. Visit the SmarTalk website at www.smartalk.com.

Note:  Certain  statements  made  herein that are not  historical  in nature are
forward-looking   statements  within  the  meaning  of  the  Private  Securities
Litigation  Reform Act of 1995  including  the  Company's  plans and  ability to
access various amounts of the credit facility.  Investors are cautioned that all
forward-looking  statements  involve  risks and  uncertainties  that could cause
actual results to differ materially from those expressed in such forward-looking
statements.  These risks include the risk that actual amounts accessed under the
facility depend upon the Company's  satisfaction of various conditions  detailed
in  the   provisions   of  the  credit   agreement   including,   under  certain
circumstances,  the lender's  discretion.  Investors  who seek more  information
about the  Company's  business and relevant  risk factors may wish to review the
Company's SEC reports, including,  without limitation, its Annual Report on Form
10-K for 1997 and its Quarterly  Reports on Form 10-Q, as each of such documents
may be amended, and the Form 8-K which the Company is preparing to file with the
SEC, which will include the complete text of the credit agreement.