TeliPhone Inc. Issues Statement of Clarification Concerning Recent VoIPMDU Press Release

MONTREAL, Jan. 7, 2005 — United American Corporation's (NASDAQ otcbb:UAMA - News) wholly owned subsidiary TeliPhone Inc. wishes to clarify statements made on a VoIPMDU press release dated January 5, 2005. "VoIPMDU.COM Completes Agreement for The Most Comprehensive VoIP Telephony Package Available on The Market with UAMA/TeliPhone".

Relationship with VoIPMDU

TeliPhone Inc. has signed a letter of intent to collaborate on offering a joint VoIP telephony package to the marketplace, with a focus on leveraging VoIPMDU's existing relationships with leading loyalty program exchanges and Internet Service Providers. An agreement outlining specific terms and conditions is currently in the works and is anticipated shortly.

Revenue Estimates

TeliPhone Inc. does not, at this time, support the revenue estimates or the time frame to achieve them that has been outlined in this press release. TeliPhone Inc. and VoIPMDU have analyzed the market opportunity and believe it to be significant. The nature of the letter of intent is to confirm the potential and to then structure the partnership in order to capitalize on it.

TeliPhone Inc. is deeply committed to its responsibility to accurately inform its shareholders and the investment community of significant events and to not make assumptions that are not considered to be realistic by its management team. Revenue estimates such as those made in the January 5th press release were premature and do not necessarily reflect TeliPhone's anticipated revenues from this opportunity in such a time frame.

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 TeliPhone™ services. TeliPhone™ operates its own Main CO (Central Office) in Montreal, where all worldwide TeliPhone™ 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.

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.