WAVETECH RETAINS ERNST & YOUNG AS AUDITORS
   Image and Services of Big Five Firm Meets Wavetech's Strategic Requirements

TUCSON, AZ, August 17 -- Wavetech  International,  Inc. (OTC BB: ITEL) announced
today that it has retained Ernst & Young, LLP a big five accounting firm, as its
independent auditor.  Ernst & Young replaced Addison,  Roberts & Ludwig, P.C., a
smaller local accounting firm.

"We felt we needed the  services of a big five  accounting  firm in keeping with
our business plan to grow Wavetech  into a provider of  leading-edge  technology
and  services  for  communications  worldwide,"  said Gerald  Quinn,  Wavetech's
President & CEO. "Ernst & Young's  knowledge of accounting  practices around the
globe and their impeccable  reputation made them the ideal choice as auditor for
Wavetech. We are delighted that Ernst & Young has agreed to become our auditor."

Wavetech   International,   Inc.,   founded  in  1993,  is  a   facilities-based
communications  company.  Wavetech  is one  of  the  first  companies  to  focus
exclusively on IP (Internet Protocol) based long distance services.

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.

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CONTACT: BILL ROBERTS, CTC INC., 937-434-2700