Frontline Communications Corp., has closed on the first $500,000 of an equity financing of up to $1 million with Scarborough, Ltd., and granted Scarbo...

Frontline Communications Corp., has closed on the first $500,000 of an equity financing of up to $1 million with Scarborough, Ltd., and granted Scarborough an option to finance an additional $500,000 within the next 45 days. The company also restructured the balance of a $550,000 bridge loan with IIG Equity Opportunities Fund, Ltd. (IIG). $100,000 of the proceeds of the financing with Scarborough was used to partially repay the IIG bridge loan, leaving $325,000 outstanding under the restructured agreement. The balance of the proceeds will be used for the purchase of inventory by the company’s Provo division, and for operating expenses.

Commenting on the transaction, Frontline CEO Stephen J. Cole-Hatchard stated, “The completion of this piece of our overall financing plan allowed us to restructure and extend the IIG bridge loan in anticipation of our next round of funding, which we hope to conclude before year end. This money will also assist us in continuing the execution of our business plan, including the growth of our calling card distribution division, and the launch of our new payroll and cash card product lines. We are continuing our efforts to restructure most of our remaining debt, and hope to announce similar successful results soon.”


About Frontline Communications Corp.
Founded in 1995, Frontline Communications Corporation, traded on the American Stock Exchange under the symbol FNT, has two operating divisions, Provo and Frontline.

For more information on Frontline, please visit www.fcc.net

About Provo Division
The Provo division, acquired by Frontline Communications Corp. in April, 2003, is a Mexican corporation which maintains a dominant position within the prepaid calling card and cellular phone airtime markets in Mexico. Provo and its affiliates have been in operation for over seven years, and had combined audited revenue in 2002 of approximately $100 million, with operating profits of over $800,000. The company currently anticipates expanding existing Provo services to the continental United States, and intends to begin marketing cash cards, payroll cards and other forms of payroll and money transfer services, through both the Frontline and Provo divisions, in the near future.

For more information on Provo, please visit www.provo.com.mx