Telehop Announces Third Quarter Results, Appointment of New Chief Financial Officer and Granting of Options

Telehop Communications Inc. (“Telehop” or the “Company”), (TSX-V:HOP) today announced its unaudited financial results for the nine months ended September 30, 2014.

Telehop’s revenues grew 120% to $4.7 Million compared to $2.1 Million in 2013 mostly due to the acquisitions of the new businesses in Q1 and Q2 along with growth in the wireless divisions. The Company maintained a stable cash position of approximately $1.8 Million. EBITDA1 was approximately $125,000 for the quarter compared to about $104,000 in 2013, an increase of 20% year-over-year. The Net Loss for Q3 was about $105,000 compared to net income of about $51,000 in 2013. Sales for iRoam and the wireless business were about $693,000 for Q3, approximately 15% of total sales for the quarter. The diverse opportunities of entering higher growth markets of wireless services will assist Telehop from declining traditional long distance dial around services.

“Telehop continues to see strong growth from data and voice wireless services fostered by the organizations purchased in Q1 and Q2 of 2014. This is a very exciting time for the organization as the new wireless businesses delivered increased revenues that we will continue to build in the coming quarters. We look forward to a strong close for 2014 and growth in 2015,” said Rajiv Jagota, President CEO, Telehop.

Company highlights during the quarter include:

• Automation and streamlining of functions post-acquisition of G3 and iRoam;
• Online marketing to expand the retail roaming SIM card service;
• Increased sales to enterprise customers for wireless and other telecom services.

FINANCIAL OVERVIEW

1 We define EBITDA as earnings before interest costs, taxes, depreciation and amortization as earnings before interest costs, taxes, depreciation, and amortization. EBITDA is non-GAAP financial measure used in to assist in understanding and comparing operating results. EBITDA is reviewed regularly by management and our Board of Directors in assessing performance and in making decisions regarding the ongoing operations of the business and the ability to generate cash flows. Generally, a non-GAAP financial measure is a numerical measure of a company’s performance, financial position or cash flows that either excludes or includes amounts that are not normally excluded or included in the most directly comparable measure calculated and presented in accordance with IFRS. EBITDA is not a measure of financial performance nor does it have a standardized meanings under IFRS. In evaluating these measures, investors should consider that the methodology applied in calculating such measures may differ among companies and analysts. We have reconciled EBITDA to its most comparable measure calculated in accordance with IFRS, being net income (loss) in the tables below.

Below is a reconciliation of “EBITDAC” to net income (loss) for the periods presented:

A complete financial reporting package for the September 30, 2014, quarter, including the December 31, 2013, Audited Annual Consolidated Financial Statements and Notes to the Financial Statements and MD&A, is available at our corporate website (www.telehop.com), at SEDAR website (www.sedar.com) or via email to investorinquiry@telehop.com or via phone at 416-499-5463.

APPOINTMENT OF NEW CHIEF FINANCIAL OFFICER

Telehop is pleased to announce today that Inderjit Saini will be appointed the new CFO as of November 26, 2014.

Inderjit is a Chartered Professional Accountant with more than 8 years of senior-level financial experience. Inderjit has spent over 4 years in BDO LLP’s audit and advisory practices working with a variety of industries including retail, manufacturing and telecommunication organizations.

“We are excited to have Inder join the Telehop team at a pivotal point in the organization. His consulting background and project management experience will be key in continuing to build on the growth Telehop has shown in 2014,” commented Mr. Rajiv Jagota, President & Chief Executive Officer.

Telehop also announces effective November 26, 2014 that the Board of Directors has granted Mr. Saini options to acquire up to 100,000 common shares of the Company for a period of five years, where each stock option represents the right to purchase one (1) common share of the Company, to be exercisable at a price of $0.15.

GRANTING OF OPTIONS

Telehop will be granting Rajiv Jagota, President & Chief Executive Officer, 50,000 stock options at an exercisable price of $0.15 in accordance with Mr. Jagota’s employment contract.

DISCLOSURE REGARDING FORWARD-LOOKING STATEMENTS

Certain statements contained herein regarding the Company and its plans constitute “forward-looking statements” within the meaning of Canadian securities laws. By their nature, forward-looking statements require the Company to make assumptions and are subject to inherent risks and uncertainties. The forward-looking statements involve known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements of the Company to be materially different from any performance or achievement expressed or implied by such forward-looking statements. We direct you to our Company’s Management’s Discussion and Analysis filed for the period ended December 31, 2013.

Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

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About Telehop

Telehop Communications Inc. (TSX-V: HOP) was founded and headquartered in Toronto, Ontario in 1993, and has grown into one of the largest alternative telecommunications providers to both residential and business customers.

Telehop originally began offering residential and business two-way monthly 'flat rate' calling services in the Greater Toronto area between communities where a call would otherwise be a long distance call. In 1994, Telehop became one of Canada's few Equal Access Long Distance Providers, allowing it to offer its customers full service long distance calling globally at significantly lower rates. Telehop has broadened into home phone, business services, and wireless communications. The Canadian Radio-television and Telecommunications Commission ("CRTC") has licensed Telehop as a Class "A" telecommunications carrier.

Telehop's dedication and priority is providing residential and businesses with exceptional phone services at competitive rates without sacrificing quality service.