United American Corporation announces its first major US carrier agreement with XO Communication

Montreal, Canada, October 20, 2004.  United American Corporation (NASD otcbb: UAMA) announces that it has entered into a carrier agreement with XO Communications Inc. (NASD otcbb: XOCM) of Reston, Virginia for the deployment of its wholly owned subsidiary TéliPhone, Inc. service in the United States.

The téliPhone™ network will be interconnected with the XO Communications' SONET network and Sonus softswitches across the US via its TéliPhone Central Office in New York .

The téliPhone™ service will be available in 37 major metropolitan markets in the US and will be phased in over the next year. Phase one will begin on November 1 st and will provide TéliPhone service to the 7 largest metropolitan areas, providing local phone numbers to téliPhone™ subscribers in those areas. Also available to subscribers, will be virtual phone numbers, which will allow them to have several numbers, including different area codes on the same phone.

“This agreement is an important milestone for téliPhone™. TéliPhone™ service will quickly provide a quality alternative phone system that is cost efficient to the major North American markets,” according to Benoit LaLiberte, CEO of United American Corporation.

About XO Communications

XO Communications is a leading provider of national and local telecommunications services to businesses, large enterprises and telecommunications companies. XO offers a complete portfolio of services, including local and long distance voice, dedicated Internet access, private networking, data transport, and Web hosting services as well as bundled voice and Internet solutions. XO provides these services over an advanced, national facilities-based IP network and serves more than 70 metropolitan markets across the United States . For more information, visit www.xo.com.

About TéliPhone, Inc.

TéliPhone, Inc. is a wholly owned subsidiary of UAC. Since 2001, the company has pioneered Voice over Internet Protocol (VoIP) in Canada . The company was the first Canadian VoIP service provider to offer a nation-wide telecommunication local call coverage service. The company has developed a powerful back office system that provides an integrated web-based personal portal to their subscribers as well as administrative support to the company, and constitutes the core technology of today's mobile téliPhone™ services. TéliPhone™ operates its own Main CO (Central Office) in Montreal, where all worldwide téliPhone™ devices are controlled, thus giving the company the advantage of centralized operations and cost reductions.

The CO is state-of-the-art, with full equipment redundancy including battery backups, electric generators, a redundant air conditioning system, and fibre optic Internet backbone connections. Also, téliPhone™ relies on leading edge equipment, which is based on HP/Compaq servers, running on Microsoft Windows and Linux servers operating systems, and Cisco System and Quantum Technology switches, gateway and network equipment. For more information, visit the company website at www.teliphone.us.

About United American Corporation

United American Corporation is a holding and management company of next generation Voice over Internet Protocol (VoIP) based telecommunication Company. The organization currently has five subsidiaries. Each subsidiary operates in a specific niche market in a fast growing global worldwide IP-based telephony network. The company has created a network, which provides services from local IP-based telecommunication to international telecommunication carriers. TéliPhone, Inc. operates sophisticated extended local communication VoIP central office, while United American Telecom, Inc. operates CaribbeanONE™, a state-of-the-art International telecommunication route & gateway. For more information, visit the company website at www.unitedamericancorp.com.

This news release contains forward-looking statements that are subject to various risks and uncertainties. The Company's actual results could differ materially from those anticipated in such forward-looking statements as a result of numerous factors that may be beyond the Company's control. Forward-looking statements are based on the expectations and opinions of the Company's management on the date the statements are made, and the Company assumes no obligation to update forward-looking statements should circumstances in management's expectations or opinions change.