United American Corp. in Talks for Teliphone Inc. Share Exchange Agreement

Montreal, Canada, April 14, 2005 — United American Corporation (NASD OTCBB:UAMA) wishes to inform its shareholders that it is currently in talks with a publicly traded company to define an exchange agreement for the shares of its wholly owned subsidiary Teliphone Inc.  The public company is currently seeking a fully operational entity with the growth potential and value of Teliphone Inc. and therefore United American Corp. and the company’s representative believe that this agreement will be beneficial for shareholders of both companies.  One result of this reverse take-over process will be that Teliphone Inc. will be listed sooner on a North American exchange than earlier anticipated.  United American Corp. has decided that it is in the best interest of its shareholders to pursue this opportunity which would greatly facilitate the growth of an independent Teliphone Inc. when compared to the original spin-off strategy announced on March 9, 2005.

Shares of this newly formed entity received from this transaction will then be distributed to UAMA’s current shareholders as a dividend.  A new shareholder record date will be determined soon.

United American Corp. will therefore delay its proposed spin-off of its wholly-owned Teliphone Inc. subsidiary, which was originally targeted for April 15, 2005.  More information will be provided to shareholders as soon as it becomes available.

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.