YP.NET ENDS LOAN AGREEMENTS WITH MAJOR SHAREHOLDERS

MESA, Ariz.--(BUSINESS WIRE)--Feb. 26, 2004--YP.Net, Inc., (OTCBB:YPNT - News) a
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leading provider of Internet Yellow Pages and related services, announced today
that it is terminating its loan agreements with two major shareholders in favor
of paying dividends to all shareholders.

The loan agreements involved Morris & Miller Ltd. and Matthew and Markson Ltd.,
generally referred to in the Company's public filings as "the M&Ms." The M&Ms
are both Antiguian partnerships that obtained their ownership of YP.Net common
stock as a result of the Company's previous acquisition of Telco Billing, Inc.,
the Company's wholly-owned subsidiary and the entity out of which the majority
of its operations are conducted.

As part of the purchase of Telco Billing in 1999, and subsequent renegotiation,
the M&Ms each had a revolving line of credit with the Company. The new agreement
terminates the revolving lines of credit on April 9, 2004. As part of the new
agreement, YP.Net will make final loans to the M&Ms and will continue to hold a
significant amount of the M&Ms YP.Net stock, which was pledged as collateral for
repayment of the outstanding loans.

"Under the new agreements, the M&Ms, who are neither officers, directors nor
members of our management, will be treated like all other shareholders, without
any special rights or privileges," said YP.Net CEO Angelo Tullo. "Like the other
shareholders, the M&Ms will receive dividends. However, the amount paid to them
in dividends will be significantly less than the amount they could have received
under the now-terminated loan agreements," explained Tullo.

About YP.Net Inc.

YP.Net Inc., a leading provider of Internet-based Yellow Pages services, offers
an Internet Advertising Package ("IAP") that includes a Mini-WebPage(TM) and
Preferred Listing through its Yellow Pages Web site at www.YP.com. The company's
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Web site contains listings for approximately 18 million businesses in the United
States and 150 million individuals in the United States and Canada. As of
December 31, 2003, YP.Net Inc. has 283,064 IAP advertisers.

YP.Net also provides an array of other Internet services that complement its
Yellow Pages Web site, including an Internet Dial-Up Package(TM) (dial-up
Internet access) and QuickSite(TM) (Web site design & hosting services).

YP.Net is a longstanding member, exhibitor and sponsor of the two major Yellow
Pages trade associations -- Yellow Page Integrated Media Association (YPIMA),
the major trade association of Yellow Pages publishers throughout the world, and
the Association of Directory Publishers (ADP), which mostly represents
independent Yellow Pages publishers. YP.Net Inc. is based in Mesa, Ariz. For
more information, visit the Web site at www.YP.com.

Forward-looking Statements

This press release includes statements that constitute "forward-looking
statements," which are often characterized by the terms "may," "believes,"
"projects," "expects," or "anticipates," and do not reflect historical facts.
Specific forward-looking statements contained in this press release include, but
are not limited to the Company's intention to pay future dividends.

Forward-looking statements involve risks, uncertainties and other factors that
may cause actual results, performance or achievements of YP.Net and its
subsidiary to be materially different from those expressed or implied by such
forward-looking statements. Factors that could affect the Company's results and
cause them to materially differ from those contained in the forward-looking
statements contained herein include, without limitation the Company's failure to
attract or obtain new Internet


Advertising Package customers, to realize the desired results of its marketing
and solicitation efforts or the failure to launch its branding campaign.

Other factors that may affect forward-looking statements and the Company's
business generally include but are not limited to: (i) the success of existing
competitors and the introduction of new competitors in the market; (ii) the
impact of existing or new regulation on the Company's marketing and solicitation
efforts; (iii) risk factors and cautionary statements made in the Company's
Annual Report on Form 10-KSB for the period ended September 30, 2003 and any
subsequent Quarterly Reports on Form 10-QSB; and (iv) other factors that YP.Net
is currently unable to identify or quantify, but may exist in the future.

Forward-looking statements speak only as of the date the statement was made.
YP.Net does not undertake and specifically declines any obligation to update any
forward-looking statements.



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Contact:
     YP.Net Inc., Mesa
     Roger Bedier, 480-654-9646, ext. 1239
     Fax: 480-654-9747