1

                                                                    EXHIBIT 99.2


[SMARTALK LETTERHEAD]


                                  NEWS RELEASE 


FOR IMMEDIATE RELEASE
- ---------------------


            SmarTalk TeleServices, Inc.:        William Kahn
                                                VP, Corporate Communications
                                                (614) 799-4573

                     Investor Relations:        Tom Ekman
                                                Sitrick & Company
                                                (310) 788-2850

        Fletcher Asset Management, Inc.:        Everett L. Grant
                                                (212) 758-7000 


            SMARTALK(SM) RAISES $30 MILLION TO ACCELLERATE CELLULAR
                        EFFORT THROUGH PRIVATE PLACEMENT


        July 17, 1998 (Columbus, Ohio) - SmarTalk(SM) TeleServices, Inc.
(Nasdaq: SMTK) today announced the completion of a financing transaction with
Fletcher International Limited designed to strengthen the company's capital
structure by approximately $30 million. SmarTalk completed a private placement
of approximately 1.8 million shares of newly issued common stock at a purchase
price of $17.125 per share, for an aggregate of approximately $30 million in
gross proceeds. SmarTalk plans to use the proceeds to accelerate its entry into
the emerging prepaid wireless marketplace and for general corporate purposes.

        SmarTalk TeleServices, Inc. is a leading provider of prepaid calling
cards and prepaid wireless services and currently 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. The Company also
creates promotional phone card programs for advertisers and corporate clients.
Visit the SmarTalk website at www.smartalk.com.

   2


SMARTALK COMPLETES FINANCING TRANSACTION
July 17, 1998

Page 2
- ----------------------------------------



Note: Certain statements made herein that are not historical in nature are
forward-looking statements within the meaning of the Private Litigation Reform
Act of 1995, including the intent to accelerate the Company's entry into the
emerging prepaid wireless marketplace. 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, without limitation, risks
relating to delays in the Company's plans to enter the prepaid wireless market,
its ability to obtain adequate sources of new working capital, its ability to
contain growth in selling, general and administrative overhead and other
corporate expenditures. 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.


                                      ###