Alteva (ALTV) Appoints CEO, Announces Buyback, and Gives Update on Restrucutring

Alteva, Inc. (NYSE: ALTV) is pleased to announce the appointment of Brian J. Kelley to the position of CEO. Further, the Company has completed its organizational re-alignment and operational restructuring that was started earlier this year. These changes were implemented to optimally position the Company for profitable growth and further drive enhanced customer service excellence. Mr. Kelley assumed the role of Interim CEO several months ago and has led the Company in implementing significant efforts directed at expanding the sales channels. The management teams cumulative restructuring efforts have resulted in an immediate positive impact on the Company's operating and financial performance, including:

• For the second quarter of 2014, UC revenues increased by 27%, excluding the results of the Syracuse, NY operations that were sold in September 2013; including the Syracuse operations, UC revenues increased 8%;
• Gross profit margin increased to 62% in the second quarter of 2014 from 57% for the same period in 2013;
• There were over 47,000 users on Alteva's hosted platform at the end of the second quarter of 2014, which represented an increase of 28% of the installed base compared to the end of the second quarter of 2013; including the Syracuse operations, the seats increased 17%;
• The development and expansion of important strategic partnerships, including WTG and MicroCorp.

Strategic Initiatives

After careful consideration, and in response to the ongoing feedback from a broad spectrum of shareholders and in light of the Company's recent monetization of its Orange & Poughkeepsie Partnership interest, Alteva is announcing two strategic initiatives.

The Company is evaluating selected strategic opportunities to supplement its organic growth potential via acquisition.

The Company's board of directors (the "Alteva Board") has authorized a repurchase program for up to $3,000,000 of its common stock. Share purchases may take place in open market transactions or in privately negotiated transactions and may be made from time to time depending on market conditions, share price, trading volume and other factors. Such purchases will be made in accordance with applicable securities laws and regulations. For all or a portion of the authorized repurchase amount, Alteva may enter into a plan that is compliant with Rule 10b5-1 of the United States Securities Exchange Act of 1934 that is designed to facilitate these purchases. The repurchase program authorized by the Alteva Board does not require Alteva to acquire a specific number of shares, and may be terminated, suspended, or modified at any time. The timing and actual number of shares repurchased, if any, will depend on a variety of factors including the market price of the Company's common stock, regulatory, legal and contractual requirements, and other market factors. The share repurchases will be funded from available cash on hand.

Brian J. Kelley, Alteva's newly appointed Chief Executive Officer, stated, "I believe we are just starting to realize the growth potential in the VoIP and UCaaS markets and I am committed to capitalizing on these opportunities. We are also committed to ensuring that Alteva has the competitive structure, including critical mass, to compete at all levels in the enterprise client market. To augment our emphasis on organic growth, we will strive to leverage our infrastructure and to evaluate opportunities representing accretive profitability."

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