Important Information for TelexFREE Customers and Independent Sales Associates

On April 13, 2014, TelexFree, Inc., TelexFree, LLC and TelexFree Financial, Inc. filed for protection under chapter 11 of the United States Code. Those cases currently are pending in the Bankruptcy Court for the District of Massachusetts under Case Nos. 14-40987, 14-40988 and 14-40989. Information can be found on the Bankruptcy Court’s docket at https://ecf.mab.uscourts.gov/ or at the Kurtzman Carson website at http://www.kccllc.net/TelexFree.

TelexFREE has suspended all business activity while we address certain issues in the Bankruptcy Court and address pending proceedings by the SEC and other government agencies. Since we are not currently in a position to support our network, it is likely Customers will experience either interruption or discontinuation of service. Independent Associates and Promoters should not be representing TelexFree on a going forward basis absent approval of a new compensation plan by the Bankruptcy Court.

We continue to believe strongly in the TelexFREE VoIP product and the direct selling model. At this point, however, we do not know when or if we will be able to persuade the Bankruptcy Court and other legal bodies of the value of our VoIP service and the potential new TelexFREE products, and the viability of the TelexFree business. We continue to be hopeful that we will obtain approval from the Bankruptcy Court to restart day-to-day operations and restructure TelexFree’s VoIP business.

To our Customers and our Independent Associates, we thank you for your loyalty. While the issues we are facing are unfortunate, we remain dedicated to continuing the TelexFree VoIP and related telecommunications services.

Until then, you have our sincerest regard,