Digifonica Announces Strategic Partner Agreement with Ghost Telecom
Vancouver, B.C., July 4, 2008  — Digifonica International Inc. (TSX-V: DIL, "the Company" or "Digifonica"), an Internet telecommunications Service Provider (“ITSP”) and technology licensing company, announced today that it has entered into an agreement with Ghost Telecom Limited (“GTL”) to fully integrate Digifonica’s IP Telecommunication backbone into GTL’s low-cost international calling for mobile phones (“Jabbrz”) service. The fully integrated service will enable subscribers with virtually any mobile handset to make cheap international calls, make low cost calls whilst roaming, as well as place free calls between Jabbrz subscribers and to their Skype contacts. Digifonica and GTL have begun working on an alpha release of the project, with expectation to release an invitation only Beta release in Q4, 2008.  The scope of the Beta release is expected to be the Europe and North America markets, and global coverage anticipated under a full commercial release.  Under the terms of the agreement, a white label version of the Jabbrz solution will also be developed to enable Digifonica to provide new and existing partners a similar solution under their own brand names.

The combined Digifonica/GLT solution will work on virtually any mobile phone and does not require any special software to be installed. As such, the combined Digifonica/GTL solution can be offered to almost 600,000,000 mobile phone subscribers in Europe alone (Eurostat, “Number of Mobile phone subscribers”, 2006). With Digifonica partner plans starting as low as £5.99 (UK unlimited plan), the solution is highly competitive to traditional Voice Over Internet Protocol (“VoIP”) solutions and represents a tremendous revenue opportunity.

Michael Camilleri, co-founder and CEO of GTL, commented, “Jabbrz is providing subscribers with a simple solution to communicate with their Skype contacts without having to load any additional software onto their existing mobile phones.  Integrating Jabbrz with Digifonica enables us to expand the range and quality of the telecommunications solutions that we offer our subscribers while focusing on refining our core technologies!”

In addition, Digifonica further announces that it has accepted the resignation of Mike Bowerman as President and Director of Digifonica. Mike Bowerman will continue to assist the Company wherever possible going forward.

Digifonica is pleased to announce, subject to TSX Venture Exchange approval, that it has appointed Gavin McMillan as President of the Company. Mr. McMillan has 20 years of proven success with leading global telecommunications companies such as AT&T, and as an entrepreneur providing international solutions within the VoIP market. Mr. McMillan has provided general management, business development, corporate finance and operations expertise support to small cap companies within the high tech financial sector.

Mr. McMillan commented, “I am extremely grateful of the opportunity provided to me. Digifonica has continued to refine the licensing and corporate structure to identify with key market opportunities and I look forward to further strengthening the Company as one of the leading global IP telecommunications technology and service providers.”

In addition, the Company further announces that Richard Boxer and Gregory R. Harris, both original Directors of Initial Capital Inc., the vehicle through which Digifonica became a public company on the TSX Venture Exchange, have also resigned as Directors of Digifonica. Digifonica would like to thank Mr. Boxer and Mr. Harris for their support and assistance in the initial transaction and the subsequent months, and wish them good luck in their future endeavours.

ABOUT GHOST TELECOM

Ghost Telecom Limited is a new and progressive UK based telecommunications company founded in 2006. Funded by its founders and venture capital, Ghost Telecom creates and provides innovative and patented technology based solutions to both businesses and end consumers.

For further information please contact:

Michael Camilleri, Co-founder and CEO
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ABOUT DIGIFONICA

For further information, please contact:  

Investor Relations
Digifonica International Inc.
Telephone: +1 (604) 628-8900  ext: 0082
Direct: + 1 (778) 785 5094
Fax: +1 (604) 430-3591
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Web:http://www.digifonica.com

The TSX Venture Exchange Inc. has neither approved nor disapproved the contents of this press
release.

This news release contains forward-looking statements that involve risks and uncertainties. Such forward-looking statements or information are based on a number of assumptions that may prove to be incorrect. Although Digifonica believes that the expectations reflected in such forward-looking statements are reasonable, undue reliance should not be placed on such forward-looking statements because Digifonica cannot give assurance that such expectations will prove to be correct. Forward-looking statements or information are based on current expectations, estimates and projections that involve a number of risks and uncertainties, which could cause actual results to differ materially from those anticipated by Digifonica and described in the forward-looking statements or information. The forward-looking statements or information contained in this news release are made as of the date hereof and Digifonica does not undertake any obligation to update publicly or revise any forward-looking statements or information, whether as a result of new information, future events or otherwise, unless so required by applicable laws.