Major Canadian Telecom Company Intelco Acquires Minority Interest in TeliPhone

Montreal, August 10, 2006 — United American Corporation (NASD OTCBB:UAMA) is pleased to announce that its majority-owned subsidiary, TeliPhone, has signed an agreement with Intelco Communication of Montreal, Canada, to supply it with a white-label version of its VoIP solution. The deal provides that traffic from Intelco’s current and future clients will pass over Intelco’s existing network, while transiting through TeliPhone’s VoIP softswitch platform. A software royalty for each of Intelco’s subscribers will be contributed to TeliPhone.

"We anticipate that the software license model will represent a new and innovative way for us to increase our profitability", says George Metrakos, TeliPhone’s President & CEO. "We are hopeful that Intelco’s marketing efforts will be complimentary to future growth that we may experience in the in the retail sector, with a particular focus on the international market."

About United American Corporation

United American Corporation is a holding and management company focused on next generation Voice over Internet Protocol (VoIP) based telecommunications. On the wholesale side, United American Telecom operates an international VoIP settlement and exchange gateway linking Tier 1 and Tier 2 Telecom carriers with United American’s installed gateways in countries such as Mali and Gabon, Africa. Its Retail operations center on its flagship TeliPhone™ brand, which provides innovative internet-based telecommunications services to the US, Canadian and Indian marketplace, as well as white-label software platforms to Tier 1 & 2 Telecom carriers. TeliPhone services are present in every continent. 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.