IElement Merger With MailKey to Launch Managed Services Platform Strategy


DALLAS, Feb. 16, 2005 (PRIMEZONE) -- IElement, Inc. today announced the addition of the MailKey brand anti-spam and virus scan software to their communications services growth strategy. IElement will offer these proprietary services to all existing and new business customers. Rather than outsource these services, IElement recently merged with MailKey and in a strategic effort to combine its converged communications infrastructure with proprietary business quality software applications. The company expects margins to improve by over 50% with the addition and deployment of these applications. IElement merged with MailKey Corporation (OTCBB:MAKY) in January 2005.

"We plan to offer a very competitive suite of added value services to our SME customers, that are usually only available to large enterprises, because of the initial licensing costs and implementation costs associated with rolling out just one of these services," said Ivan Zweig, chief executive officer of IElement.

IElement's strategy is to continue to offer their flagship dynamic T1 voice and data services as well as secure L2PN WAN services, and to develop a Managed Service Platform to broaden its' suite of services available to the SME that IElement targets. Examples of future planned Managed Services are Managed Microsoft Exchange, Hosted Blackberry services, VoIP, MVNO Cellular services and MailKey's anti-spam, virus protection software.

"The merger with MailKey was a commitment to servicing our clients by enabling IElement to offer these managed services to our current customers, as well as helping us attract customers whom we target in the future," said Mr. Zweig.

About IElement

IElement is a facilities-based nationwide communications service provider that provides state-of-the-art telecommunications services to small and medium sized enterprises ("SMEs"). IElement provides broadband data, voice and wireless services using integrated T-1 lines with a Layer 2 Private Network solution to provide SMEs with dedicated Internet access services, customizable business solutions for voice, data, wireless and Internet, and secure communications channels between the SMEs' offices, partners, vendors, customers and employees without the use of a firewall or encryption devices. IElement has a network presence in 18 major markets in the United States, including facilities in Los Angeles, Dallas, and Chicago. For more information on IElement, please visit http://www.ielement.com/home

About MailKey

MailKey is a messaging security and management company. It is developing its Envoy technology platform to enable scaleable filtration, control and management of messages through a central management point. MailKey is exploring business development opportunities for the Envoy platform in the wireless Mobile Network Operator, gaming, and other markets. In November 2004, MailKey announced that it had been appointed as a Premium Member of the Orange Partner program to develop next-generation mobile message management solutions for mobile subscribers. Orange is one of the world's leading wireless Mobile Network Operators, with a 50 million-plus customer base in 19 countries. For more information on MailKey, please visit http://www.mailkey.com.

Safe Harbor Statement

This news release contains forward-looking statements that are subject to certain risks and uncertainties that may cause actual results to differ materially from those projected on the basis of these statements. The words "estimate", "project", "intends'', "expects'', "believes'' and similar expressions are intended to identify forward-looking statements. Such forward-looking statements are made based on management's beliefs, as well as assumptions made by, and information currently available to, management pursuant to the "safe-harbor'' provisions of the Private Securities Litigation Reform Act of 1995. For a more complete description of these and other risk factors that may affect the future performance of the Company, see ``Risk Factors'' in the Company's Annual Report on Form 10-KSB and its other filings with the Securities and Exchange Commission. Readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date made. The Company undertakes no obligation to disclose any revision to these forward-looking statements to reflect events or circumstances after the date made or to reflect the occurrence of unanticipated events.



            

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