United American Corporation Increases Investment in United American Telecom with Re-Launch of CaribbeanOne International Gateway

Montreal, Canada, April 7, 2005 — United American Corporation (NASD OTCBB:UAMA) announces the official re-launch of its CaribbeanOne international gateway in Haiti by its wholly-owned subsidiary United American Telecom.  United American Telecom will replace Teliphone as UAMA’s flagship subsidiary due to the announcement of Teliphone Inc.’s spin-off effective April 15, 2005.

“2004 represented a year of significant investment and focus for United American Corp. on the Teliphone subsidiary, resulting in a highly valuable asset created entirely from within United American Corp.  The asset’s spin-off represents an incredible dividend opportunity for UAMA shareholders.  Now that Teliphone has its own management team and has demonstrated its independence from the parent company, it is time for United American Corp. to re-focus on the incubation of additional value-creating assets in the exploding Voice over Internet Protocol (VoIP) marketplace”. Says Benoit Laliberté, United American Corp.’s President & CEO.

Mr. Laliberté adds “since the beginning of 2005, we have re-launched our international VoIP gateway carrier United American Telecom, which is now fully operational and cash flow positive.  As a result, we will more than triple its call termination capacity (currently 1.8 million minutes per month) in order to benefit from the surging demand for call traffic management in Haiti.”  With this increased capacity, United American Telecom will become the carrier of choice for other carriers due to its advanced and fully operational web-based billing system along with locally installed equipment.

The local infrastructure installation permits United American Telecom to benefit from the government’s incentives to increase investment within the country and to operate without the burden of higher duties and tariffs due to its status as a domestic carrier.

United American Telecom has two key initiatives for the short to medium term for its operations:

• To increase its capacity and presence in other neighbouring countries such as Santa Domingo, Cuba, Puerto Rico and the Bahamas.
• To launch a pre-paid long distance card product for bundled long distance minutes sold at the retail level to these communities in the US & Canada.

“The profit margin that currently exists is high enough to support the increased investment in the additional regions.  However, we see the real growth coming from sales at the retail level which will permit United American Telecom to significantly increase its profit margin over existing wholesale margins.  It is our intention to approach ex-patriot communities in US & Canadian cities and offer a cost-competitive pre-paid card product in order to benefit from our vertical integration.” adds Mr. Laliberté.

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.