FRIDAY MAY 5, 9:20 AM EASTERN TIME

COMPANY PRESS RELEASE

SOURCE: WAVETECH INTERNATIONAL, INC.

WAVETECH ANNOUNCES $5 MILLION PRIVATE PLACEMENT TO SUPPORT  COMMERCIALIZATION OF
WEB-BASED INTERNET TELEPHONY PRODUCT


TUCSON, Ariz., May 5 /PRNewswire/ -- Wavetech International,  Inc. (OTC Bulletin
Board:  ITEL - news)  announced  today the  completion  of a $5 million  private
placement of 6% Series B convertible  preferred  stock and common stock purchase
warrants.

The Company will use the proceeds primarily to finance the  commercialization of
Bestnetcall,  the Company's  web-based  telephony  product (see April 25, 2000 -
"Wavetech Launches Internet-Based Telephony Product").  Proceeds will be used to
fund marketing and other existing capital needs, to expand service capacity into
its New York and Los Angeles facilities, and to pay off a $2 million bridge loan
executed in mid-December.

Bestnetcall is the industry's  first  Internet-based  long distance service that
provides  worldwide  access to  low-cost  long  distance  with  call  management
capabilities,  without the need for special software or hardware. Businesses and
individuals  can now  sign up  online  for  Bestnetcall  through  the  Company's
website,  www.bestnetcall.com.  A full market launch is  anticipated  within the
next month.

Gerry Quinn,  President  and CEO said,  "We are very  pleased to have  investors
share our  confidence  in Wavetech as we prepare for full  commercialization  of
Bestnetcall.  We believe  this  service  offers  many  advantages  over  current
telephony  systems.  This funding  will enable us to utilize the best  marketing
resources  available to gain market share and to become a significant  player in
this industry."

Wavetech issued a total of $5 million of the convertible preferred securities. A
preferred  share  carries a dividend of 6% and a conversion  price of 80% of the
average  closing bid prices of the  Company's  common stock for the three lowest
trading days out of the ten (10) consecutive trading days immediately  preceding
the conversion  date or 110% of the average  closing bid prices of the Company's
common  stock for the five (5) trading days prior to the date of issuance of the
preferred shares. The preferred stock is redeemable by the Company at any time.

Wavetech  is a  web-based  telephony  company,  offering  advanced  products  to
businesses and individuals worldwide. To learn more about Bestnetcall, visit the
website at www.bestnetcall.com. To contact a company representative, please send
an email to sales@bestnetcall.com.

This press release contains certain forward-looking  statements made pursuant to
the Safe Harbor  Provisions of the Private  Securities  Litigation Reform Act of
1995.  This  information  may involve risks and  uncertainties  that could cause
actual  results  to  differ  materially  from such  forward-looking  statements.
Factors that would cause or contribute to such differences  include, but are not
limited  to,  those  factors  detailed  by  Wavetech  in its  filings  with  the
Securities and Exchange Commission.

Contact: Bill Roberts, CTC Inc. 937-434-2700, for Wavetech International, Inc.

SOURCE: WAVETECH INTERNATIONAL, INC.

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