MANILA-BASED ETELECARE ACQUIRES LEADING CALL CENTER COMPANY PHASE2
June 2, 2004

Combination Creates Largest Asia-Based Call Center Firm, Will Result in U.S. Job Growth

MANILA, Philippines and SCOTTSDALE, Ariz., June 2 /PRNewswire/ -- eTelecare International, the leading call center company in the Philippines, announced today that it has acquired privately held Phase 2 Solutions, the leading provider of premium customer relationship solutions to the wireless and telecom industries and one of the fastest growing call center companies in the United States. The combination creates the largest independent call center company based in Asia and unites best-of-breed capabilities from the United States and Asia.

"We are combining our companies in order to provide our clients with an unparalleled range of cost and location options across a wider variety of industries," said eTelecare President-International Jim Franke. "Our clients will now have the choice of onshore, offshore or a blend of the two; whichever solution or continent customers select, they'll get the same exceptional quality and superior value."

"Phase 2's industry-leading capabilities in telecommunications service and sales are a perfect complement to eTelecare's expertise in financial services, technical support and travel. Our technology is already fully integrated across both companies, enabling us to immediately serve clients seamlessly," said Phase 2 President Larry Willett.

Revenue and Jobs Growth

Together, the companies generated revenues of approximately $75 million in 2003, and are projected to achieve $125 million in 2004, which will be split evenly between the United States and Asia. The combined entity operates nine call centers on two continents, with an employee base of 5,500. Staffing levels are expected to increase significantly in both Asia and the United States, according to Derek Holley, eTelecare President - U.S.: "We're planning to create some 500 skilled U.S. jobs in the next 18 months, representing a 25% increase in our United States operations."

Industry-Recognized Best-of-Breed Capabilities

The two companies' relentless focus on quality and client satisfaction have won them a combined 18 U.S. industry awards, including Best Outsourcer for 3 years in a row (2001-2003) at the International Call Center Management Conference, the largest trade show in the call center industry.

Phase 2 is the number one service provider for the technical support, customer service, inbound sales and outbound customer retention programs it delivers to its clients, which are amongst the leading wireless and landline carriers in the United States.

eTelecare is the top-performing provider of technical support, customer service and sales for its Fortune 100 clients in the technology, finance and travel and leisure sectors. eTelecare's offerings range from inbound customer service to expert enterprise-level technical support to NASD Series 6 and Series 7 licensed mutual funds and brokerage transactions.

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