SCHIPHOL, THE NETHERLANDS—April 2, 2012 - Elephant Talk Communications Corp. (NYSE Amex: ETAK) (www.elephanttalk.com), an international provider of business software and services to the telecommunications and financial services industries, today announced the results of operations for the fourth quarter and fiscal year ended December 31, 2011.

Commenting on the 2011 performance, Chairman and Chief Executive Officer, Steven van der Velden said, "The past year has been a period of significant operational achievements and transitional financial gains. We are pleased to have doubled our mobile and security solutions revenue during the 2011 fiscal year. In addition, the fourth quarter was an important period for the company as our higher margin mobile services division completed our largest migration ever by transferring over 600,000 users to our telecom platform in Spain. These new users provide us with monthly recurring revenue, which will continue to provide an increase in our high margin mobile revenue throughout 2012. Management believes that this significant influx of users coupled with new migrations, planned throughout 2012, will help us in reaching profitability. We recently expanded our geographic footprint in Germany through the acquisition of Ensercom that includes a 5- year contract with Telekom Deutschland. Throughout 2012 we anticipate our operations to grow and that we will be present or commencing in 8 countries with our mobile platform.”

Mr. van der Velden continued, “Our recent partnership with Adeptra has already led to its first commercial contract award which is expected to go live in the month of April. We believe that this contract will serve as a turning point in our company and allow us to secure additional similar contracts through the pipeline we have assembled with Adeptra. In parallel, ValidSoft continues to focus on its key strategic plan of working with financial institutions around the world and we fully expect to monetize more of these relationships in 2012. Since we have acquired ValidSoft we have continued to dedicate substantial resources in expanding our Intellectual Property and when combined with our multiple European Privacy Seals, provides us with a significant competitive advantage today and positions us for future success.”

Key Operational Highlights:
• The company successfully completed a listing of its common stock on the NYSE Amex stock exchange.
• A commercial and technology partnership was signed with Adeptra, the leader in autoresolution technologies that spans the consumer lifecycle that will help retail banks to detect and prevent fraud worldwide.
• This partnership provides financial organizations with best-in-class fraud detection and prevention functionality, as well as total control over their customer communications
• A contract was signed with AirTouch Communications (OTCBB: ATCH)
(www.airtouchinc.com) to provide a Carrier Grade Mobile Services Platform.
• A Mobile Virtual Network Enabler (MVNE) Platform in the United States will be implemented that includes a Gateway Support Network (GGSN), IN Intelligent Networking Platform, a Customer Relationship Management platform (CRM), a Full Rating & Billing Platform and a STP/Signaling Platform for AirTouch to launch its services in the United States.
• ValidSoft was nominated for Two SC Magazine Awards and voted a finalist in the category Best Secure Transaction Solution and Best Security Solution, Financial Services.
• ValidSoft received its second European Privacy Seal certification for its anti-fraud solutions.
• Based on the company’s financial strength and increasing recurring monthly revenue the company successfully had the going concern statement removed in the 2011financial report (10-K).

Conference Call Reminder
As a reminder, Elephant Talk Communications will host a Shareholder Update Conference Call on April 3, 2012 at 11:00 a.m. (EDT). Anyone interested in participating should dial 1-480-629-9760 approximately 5 to 10 minutes prior to 11:00 a.m. Participants should ask for the Elephant Talk Shareholder Update conference call. To listen to the playback please utilize the webcast by visiting the company's website at www.elephanttalk.com.

This call is being webcast by ViaVid Broadcasting and can be accessed at either Elephant Talk's website at www.elephanttalk.com or ViaVid's website at http://www.viavid.net. To access the webcast, you will need to have the Windows Media Player on your desktop.

For the free download of the Media Player, please visit: http://www.microsoft.com/windows/windowsmedia/en/download/default.asp

Financial Results for the Fiscal Year Ended December 31, 2011
Revenue for the year ended December 31, 2011 was $32,232,981, a decrease of $4,935,370 or 13.28%, compared to $37,168,351 for the year ending December 31, 2010. The decrease in revenue was the result of the expected continued revenue decrease in our low margin legacy landline business by $7,886,899, which was partly off-set by the increase in revenues of our higher margin mobile and security solutions business of $2,951,530 (or 104.42%) compared to 2010.

Cost of Service for the year ended December 31, 2011 was $28,723,265, a decrease of $6,397,651 or 18.22%, compared to $35,120,916 for the year ended December 31, 2010. The decrease in cost of service was mainly caused by the decrease in revenues in our low margin legacy landline business. Cost of service as a percent of revenue was 89.1% and 94.5% for the years ended December 31, 2011 and 2010, respectively.

Despite the large decrease in total revenues, the Margin (Revenues minus Cost of Service) has increased by 71.4% following the growth in higher margin mobile and security solution business. The increase in our higher margin mobile and security solutions business is mainly due to the increasing revenues of already existing customers and a customer with a large consumer base with monthly recurring revenues coming on to our platform at the end of the 4th quarter 2011.

Selling, general and administrative (“SG&A”) expense for the years ended December 31, 2011 and 2010 were $16,589,649 and $9,620,322, respectively. SG&A expenses increased by $6,969,327, or 72.44%, in 2011 compared to 2010. This was led by an increase of 32.3% in our staffing levels on December 31, 2011 compared to December 31, 2010, largely in sales and European hires, as well as by higher marketing and selling costs.
The increases in staffing levels and higher marketing and selling costs are mainly related to
expected future revenues.

Net Loss was $25,310,735 and $92,483,360 for the years ended December 31, 2011 and 2010 respectively. The improvement of $67,172,625 was primarily the result of high noncash financing charges in 2010.

- Entire pdf of the Earnings Press Release