Téliphone Inc. signs new retail sales channel agreement with Digital Radio Communication

Montreal, Canada, Dec. 20, 2004. United American Corporation’s (NASD otcbb: UAMA) wholly owned subsidiary TéliPhone Inc. has signed an agreement with Digital Radio Communication for the sale of téliPhone™ products and services within their 9 retail outlets outside of Montreal. “The addition of Digital Radio Communication as a retail partner enhances our ability to reach our target market segments.  Téliphone Inc. strongly believes in the one-on-one approach to selling our wireless VoIP phone service, and Digital Radio Communication has clearly demonstrated its ability to take the necessary time with the customer to explain and demo the many features and benefits of our products” says George Metrakos, President and CEO of Téliphone Inc.  “We see this agreement as another of the many building blocks being put in place by our sales team which will permit us to benefit from the explosive growth in the demand for VoIP products and services in 2005.”

About Digital Radio Communication

Founded in 1991 by Mr. Claude Garon, Digital Radio Communication owns and operates 9 locations outside of the city of Montreal and within smaller cities in the Province of Quebec.  Its main cellular products include the Telus Mobility™ brand and is within the top 5 in the province in terms of activation volume.

About TeliPhone, Inc.
TeliPhone 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 company has also established a CO in Manhattan. 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. TeliPhone™, 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.