iPhone2 Signs Term Sheet to Acquire CLEARBAND Group of Companies' Assets. Acquisition is Projected to Add $25,000,000 in Revenue Over the Next Twelve Months

ALBUQUERQUE, N.M., May 9, 2007 -- iPhone2, Inc. (Pink Sheets: IPHE) today announced a Term Sheet in which the Company will acquire the 51% of The Clearband Group of Companies, with an option on the remaining 49%. iPhone2 has taken over managerial control of the Companies as of this date.

This acquisition includes over $3,500,000 of audited unencumbered assets as well as a three year agreement to deploy WIFI and VoIP services in Madison, WI, with an estimated value over $25,000,000 to the company. The Madison agreement calls for city-wide deployment of Clearband's SmartCity Wifi and VoIP services. Clearband has several similar agreements expected to close shortly with additional cities. iPhone2 expects to close the acquisition the first week of May.

iPhone2 Inc. is an innovative Voice and Video over Internet Protocol communication provider offering residential and commercial customers affordable and user-friendly ways to communicate more efficiently. iPhone2's OfficePhone2.0 is the Next Generation of Communication Products enabling small-to-midsized companies to enjoy the benefits and features of large, expensive phone systems without the prohibitive initial expense or ongoing maintenance costs.

"The Clearband acquisition opens new and profitable markets to deploy our industry leading IP communication services," said John Scafidi, President and CEO of iPhone2, Inc.

iPhone2 Inc. www.iPhone2.com (Pink Sheets: IPHE), iPhone2 Inc. is an innovative Voice and Video over Internet Protocol communication provider offering residential and business customers user friendly and affordable ways to communicate more effectively. Our proprietary ImagePhone allows customers to make and receive unlimited near broadcast quality video calls right from their computer desktop. They can also make VERY affordable voice calls worldwide to any telephone using our VoIP network. ImagePhone was developed to be straightforward and user friendly. OfficePhone2.0 replaces your old fashioned, expensive, complex PBX (or standard telephone service) with economical, reliable, and expandable feature rich IP phones. OfficePhone2.0 operates just like a regular phone, yet allows you to do things your old fashioned office phone could never do.

For more information, please visit www.iPhone2.com, or contact the Company at info@iphone2.com 561-952-0300, x 101

Safe Harbor Statement under the Private Securities Litigation Reform Act of 1995: This press release may contain certain forward-looking statements within the meaning of Section 27A of the Securities and Exchange Act of 1933, as amended, and Section 21E of the Securities and Exchange Act of 1934, as amended, which are intended to be covered by the safe harbors created thereby. Investors are cautioned that all forward-looking statements involve risks and uncertainties. Although iPhone2 believes that the assumptions underlying the forward-looking statements contained herein are reasonable, any assumption could be inaccurate, and therefore, there can be no assurance that the forward-looking statements included in this press release will prove to be correct. In light of the significant uncertainties inherent in the forward-looking statements included herein, the inclusion should not be regarded as a representation by iPhone2 or any other person that the objective and plans of iPhone2 will be achieved.