NetCapital Signs Agreement to Buy Out Pervasip's Lender

WHITE PLAINS, N.Y., May 16, 2011 /PRNewswire/ -- Pervasip Corp. (OTCQB: PVSP), a provider of Voice over Internet Protocol (VoIP) telephone services, today announced that a strategic investor, NetCapital.com LLC, has signed an agreement with Pervasip's lender to purchase all outstanding debt.    

NetCapital's Chairman, John Fanning, noted, "We have a track record of success with disruptive technologies, and Pervasip's technology is a true example of how game-changing vision and wisdom can be forged into a paradigm-breaking commercial product.  We have been following Pervasip for years, waiting for the right opportunity to partner and invest.  Today we have found a time of great value."

"We are pleased to have a friendly investor who wants to work with us to build value for our shareholders," said Paul Riss, Pervasip's Chief Executive Officer. "At this point in time, our original lender can no longer foreclose on our assets."

Pervasip, which operates in the mobile VoIP arena and recently became a carrier for video VoIP telephone services, received orders last week for more than 300 video VoIP lines and is now the carrier for Bausch & Lomb's video phones.  The Company believes it will see significant growth as a service provider for video phones, as it is in contract with a person-to-person marketing company to sell its services.

"We are eager to bring additional technologies to Pervasip," added Fanning.  "Not all VoIP is created equal, and we have found the VoIP network at Pervasip to be of superior quality and reliability.  We therefore plan to combine it with other technologies, such as wireless spectrum, so Pervasip can fully take advantage of the world-wide mobile Internet revolution."  

Fanning continued, "Microsoft's purchase of Skype is a significant validation of the mobile VoIP space.  We believe there is great value in Pervasip and that we can unlock that value for investors."

About NetCapital

NetCapital is a Boston area private equity firm that fills the gap in the financing market for early and late-stage start-ups in specific sectors.  Its Chairman, John Fanning, was the founding Chairman and CEO of Napster, and has introduced such net-related innovations as client-server game play, audio chat and auto-upgrading/authentication.  

About Pervasip

Pervasip Corp. delivers wholesale voice over IP (VoIP) telephone services for the residential and small business markets.  It differentiates itself through a unique combination of high quality voice services, flexible back-office capabilities and automated provisioning systems. Pervasip recently entered the mobile VoIP services and applications arena, which is expected to approach 300 million users by 2013. It offers a feature-rich, low-cost, high-quality alternative to traditional phone services. For more information, please visit www.voxcorp.net.

Forward-looking statements: This release contains forward-looking statements that involve risks and uncertainties. Pervasip's actual results may differ materially from the results discussed in the forward-looking statements. Factors that might cause such a difference include, among others, certain risks and uncertainties over which the company may have no control. For further discussion of such risks and uncertainties, which could cause actual results to differ from those contained in the forward-looking statements, see the discussions contained in Pervasip's Annual Report on Form 10-K for the year ended November 30, 2010 and any subsequent SEC filings.

SOURCE Pervasip Corp.