United American Corporation Board of Directors Sign Resolution to Spin-off its TeliPhone Inc. Subsidiary

MONTREAL, March 9, 2005 — United American Corporation (NASD OTCBB:UAMA) announces that its Board of Directors has signed a resolution to perform a spin-off of its wholly-owned subsidiary, TeliPhone Inc. The Board will seek a majority consent from shareholders. If accepted, the spin-off will be subject to regulatory approval and is anticipated to take place within the following weeks. More details will be passed on to shareholders as new information becomes available.

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.