| ****UNITED    STATES****
****SECURITIES    AND EXCHANGE COMMISSION****
****Washington,    DC 20549****  
**Form 10-QSB**                             (Mark    one) 
[ X ] QUARTERLY REPORT UNDER    SECTION 13 OR 15 (d) OF THE SECURITIES EXCHANGE ACT OF 1934 ** **
For the quarterly period ended:    March 31, 2001  
[    ]    TRANSITION REPORT UNDER SECTION 13 OR 15 (d) OF THE SECURITIES EXCHANGE ACT OF 1934   
For the transition period from    ____________ to _____________   
Commission file number: 0-28175      
AFFORDABLE    TELECOMMUNICATIONS TECHNOLOGY CORPORATION 
(Exact name of    small business issuer as specified in its charter)   
Texas 
76-0548546 
(State or    other jurisdiction of incorporation or organization) 
(IRS Employer    Identification No.) 
6227 Southwest Freeway,    Houston, TX 
77074 
(Address of    principal executive offices) 
(Zip Code)   
713-988-8884 
(Issuer’s    telephone number) 
_____________________________________________________________    
(Former    name, former address and former fiscal year, if changed since last report) 
Check    whether the issuer (1) filed all reports required to be filed by section 13 or 15 (d) of    the Exchange Act during the past 12 months ( or for such shorter period that the    registrant was required to file such report (s), and (2) has been subject to such filing    requirements for the past 90 days. Yes [ X ] No [ ] 
APPLICABLE    ONLY TO CORPORATE ISSUERS
State    the number of shares outstanding of each of the issuer’s classes of common equity, as    of the latest practicable date: 
Common    Stock, $.01 par value 83,922,525 shares outstanding as of May 8, 2001. 
Transitional    Small Business Disclosure Format: Yes __ No X 
 

 

 
**INDEX 
**PART I. FINANCIAL INFORMATION 
Page Item 1. Financial Statements (Unaudited) 
2 Item 2. Management’s Discussion and Analysis 
2 **PART II. OTHER INFORMATION Item 1. Legal Proceedings 8Item 2. Changes in Security 8Item 3. Default Upon Senior Securities 8Item 4. Submission of Matters to a Vote of Security Holders 8Item 5. Other Information 8Item 6. Exhibits and Reports on Form 8-K 9** 

PART I FINANCIAL INFORMATION 

Item 1. Financial Statements (Unaudited )
Page Balance Sheet at March 31, 2001 (Unaudited)    and December 31, 20002Statements of Operations for the three months    ended March 31, 2001 and 20003Statements of Cash Flows for the three months    ended March 31, 2001 and 2000 4Notes to Financial Statements 5
 

**AFFORDABLE TELECOMMUNICATIONS TECHNOLOGY CORPORATION AND SUBSIDIARY**
Balance    Sheets as of March 31, 2001 (Unaudited) and December 31, 2000
March 31, 2001
December 31, 2000
ASSETSCURRENT ASSETS    Cash
$158,673
$
66,921   Accounts receivable 321,861
156,339   Inventory151,172
144,915   Prepaid expenses 96,242
42,616   Other current assets125,000
125,000     TOTAL    CURRENT ASSETS 851,948
535,791PROPERTY AND EQUIPMENT, at    cost-net497,221
512,580OTHER ASSETS    Goodwill-net of    amortization467,577
473,550   Security deposits 14,290
11,773  Organization expense, at    cost-net2,288
2,543     TOTAL    OTHER ASSETS 484,155
487,866           TOTAL ASSETS 
$1,833,324
$
1,536,237
LIABILITIES AND    STOCKHOLDERS' EQUITY (DEFICIT) LIABILITIES    Bank loan payable$78,342$88,265   Current portion of    long-term debt74,90093,510   Deferred income222,881
222,881   Accounts payable,    accrued expenses and taxes payable273,648
294,929     TOTAL    CURRENT LIABILITIES 649,771
699,585LONG-TERM LIABILITIES   Long-term debt and    capital leases184,279186,642   Loans    payable-officers'18,245102,527TOTAL LONG-TERM LIABILITIES202,524289,169TOTAL LIABILITIES852,295988,754SHARE ISSUANCE IN EXCESS OF    AUTHORIZED SHARES- STOCKHOLDERS' EQUITY (DEFICIT)    Common stock, $.01    par value, 100,000,000 and shares authorized and        49,801,166 issued in 2001 and 38,351,166 shares issued in 2000498,012
383,512   Additional paid-in    capital in excess of par value3,527,727
2,986,112   Accumulated deficit(2,939,719)
(2,642,141)   Subscription    receivable(70,000)(145,000)   Treasury stock(35,000)(35,000)     TOTAL    STOCKHOLDERS' EQUITY (DEFICIT)981,029
547,483TOTAL LIABILITIES AND    STOCKHOLDERS' EQUITY (DEFICIT) 
$1,833,324
$
1,536,237The accompanying Notes    to Consolidated Financial Statements are an integral part of these Financial Statements.** 

**AFFORDABLE    TELECOMMUNICATIONS TECHNOLOGY CORPORATION**
Statements    of Operations for the three months ended March 31, (Unaudited)**Revenues****2001****2000   Sales 
$633,720
81,860**Cost of Sales**   Purchases 376,038
51,043**Gross profit**257,682
30,817**Expenses**   Contract labor 266,999
74,753   Professional fees 13,395
78,129   Bad debts (3,620)
1,169   Fees - other 15,306
325   Travel and    entertainment7,153-    Insurance 6,193
1,064   Rent 75,281
10,507   Office expense 11,044
4,921   Miscellaneous 42,366
4,692   Maintenance costs 22,295
260   Printing, delivery and    postage15,105-    Automobile expense 8,851
3,322   Depreciation 17,864
12,121   Utilities 6,813
1,881   Telephone 23,580
4,598   Contributions - 
1,580   Advertising 17,611
25,774   Taxes2,7872,249   Amortization expense 6,228
254          **Total Expenses**555,251
227,599(**Loss) From Operations**(297,569)
(196,782)          Interest expense - net - 
8,663(**Loss) Before Provision For    Income Taxes**
(205,445)**Provision For Income Taxes**
- 
- **Net (Loss)**
$(297,569)
$
(205,445)Weighted Average Number of Common    Shares Outstanding, Basic and Diluted44,036,1667,429,179Basic Net Loss Per Share (Basic and    Diluted)
$
$ (0.007) 
$
$ (0.03) The accompanying Notes    to Consolidated Financial Statements are an integral part of these Financial Statements.
 
**AFFORDABLE    TELECOMMUNICATIONS TECHNOLOGY CORPORATION **Statements of Cash Flow for the three months ended March 31, (Unaudited)**Cash Flows from Operating    Activities:****2001 **2000Net (loss) 
$(297,569)
$
(205,445)       Adjustment    to reconcile net (loss) to net cash (used in) operating activities:           Depreciation and amortization expense 24,092
12,375          Common stock issued for services 86,500
88,700          (Increase) decrease in accounts receivable (165,522)
(11,968)          (Increase) in inventory (6,257)
(20,937)          (Increase) decrease in deposits and prepaid expense and other current assets(52,626)
(119,227)          (Increase) in goodwill(2,517)-         Increase    (decrease) in accounts payable, accrued expenses, etc. (21,281)
11,493            **Net Cash (Used In) Operating Activities**(435,180)
(245,009)**Cash Flows from Investing    Activities:**     Purchase    of property and equipment (2,505)
(1,485)            **Net Cash (Used In) Investing Activities**(2,505)
(1,485)**Cash Flows from Financing    Activities:**     Proceeds    from issuance of common stock 644,615
338,450        (Decrease) increase in debt current portion(30,896)
(7,980)        (Decrease) in loan payable - officers' (84,282)
(7,414)            **Net Cash Provided by Financing Activities**529,437
323,056**Net Increase (Decrease) In    Cash**91,752
76,562**Cash - Beginning of Period**66,921
4,962**Cash - Ending of Period**
$158,673$
$81,524 **Supplemental Disclosure**Cash paid during the period for:           Income tax 
$
- 
$
-            Interest paid 
$- 
$
8,663   **Supplemental Schedule of    Non-Cash Investing and Financing Activities:**
           Non-cash issuance of common stock 
$86,500
$
88,700            Cancellation of stock subscriptions
$75,000
$- The accompanying Notes    to Consolidated Financial Statements are an integral part of these Financial Statements.
 

AFFORDABLE    TELECOMMUNICATIONS TECHNOLOGY CORPORATION 
Notes to Financial    Statements 
March 31, 2000 
(unaudited)
NOTE 1 – NATURE AND HISTORY OF THE BUSINESS

The consolidated financial statements include AffordableTelecommunications Technology Corporation (the "Company"), and its wholly ownedsubsidiary, Beeper Boutique, Inc.

The Statement of Operations for the three months ended opinion ofmanagement, all of the adjustments, consisting only of normal recurring adjustments,necessary for a fair presentation of the results for these periods and the financialcondition as of that date. Historical interim results are not necessarily indicative ofresults that may be expected for any future period.

NOTE 2 – CHANGES IN PRESENTATION

Certain financial presentations for the first quarter of 2000 have beenreclassified to conform to the 2001 presentation.

NOTE 3 – SUBSEQUENT EVENTS

The Company completed its acquisition of Z Mail Media, Inc. on April 1,2001. The Company issued 17,592,455 restricted shares of common stock to the shareholdersof Z Mail Media, Inc. The Company advanced $189,000 to Z Mail Media, Inc. during thequarter ended March 31, 2001.

 

**Item 2. Management’s Discussion and Analysis of Financial Condition and Resultsof Operations**

General

As used in this Quarterly Reporton Form 10-QSB, the terms "we", "us", "our" of the"Company" refers to Affordable Telecommunications Technology Corporation and itssubsidiaries. We are in the business of serving as a reseller and provider of wirelesstelecommunications services, paging and related services through our "WirelessStore-Beeper Boutique" retail facilities, and through our Camera's Etc. operation wesell a wide range of digital and traditional photographic equipment. In addition, throughour recent acquisition of Zmail Media, Inc., effective April 2, 2001, we have commenced operations as an Internet Public Access Terminal (iPAT) provider.References is made to our recent acquisition below.

Forward-Looking Statements
The discussion inthis report on Form 10-QSB contains statements which may constitute "forward-lookingstatements" within the meaning of Section 27A of the Securities Act of 1933, asamended (the "Act"), and Section 21E of the Securities Exchange Act of 1934 (the"Exchange Act") by the Private Securities Litigation Reform Act of 1995, 15U.S.C.A., Section 77Z-2 and 78U-5 (Supp. 1996). Those statements include statements thatinvolve risks and uncertainties, as they are not purely historical and relate to ourexpectations, beliefs, intentions or strategies regarding the future, as well asassumptions on which such statements are based. All forward-looking statements included inthis document are based on information available to us on the date hereof. Our actualresults could differ materially from those described in our forward-looking statements.Factors that could cause or contribute to such differences include, but are not limitedto, our unproven business model and a limited operating history in a new and rapidlyevolving industry; our ability to implement our business plan; and our ability to manageour growth, retain and grow our customer base and expand our service offerings. Importantfactors currently known to the management that could cause actual results to differmaterially from those in forward-looking statements are set forth in the Safe HarborCompliance Statement included as exhibit 99.1 filed with this Quarterly Report on Form10-QSB.
Wemake forward-looking statements in the "Management’s Discussion and Analysis ofFinancial Condition and, Results of Operations" in this Quarterly Report. Theseforward-looking statements include, but are not limited to, statements about our plans,objectives, expectations, intentions and assumptions and other statements that are nothistorical facts. We generally intend the, words "expect", anticipate","intend", "plan", "believe", "seek","estimate" and similar expressions to identify forward-looking statements.

This Quarterly Reportcontains certain estimates and plans related to us and the wireless telecommunicationsindustry in which we operate, which assumes certain events, trends and activities willoccur and the projected information based on those assumptions. We do not know all thatour assumptions are accurate. In particular, we do not know what level of growth in thewireless telecommunications and digital equipment industry, and particularly in thosemarkets in which we operate and shall seek to expand. If our assumptions are wrong aboutany events, trends and activities, then our estimates for future growth for wirelesstelecommunications and our business may also be wrong. There can be assurances that an ofour estimates as to our business growth will be achieved.

Recent BusinessDevelopments

After the quarter ended March 31, 2001, we acquired all of the capitalstock of Zmail Media, Inc., a Texas corporation ("Zmail"), from the shareholdersof Zmail, in consideration for the issuance of 17,592,455 restricted shares of our commonstock to the former Zmail shareholders. Based upon the average of the closing bid pricesof our shares during the ten trading days prior to the date of the transaction, of $.06per share, the acquisition of Zmail has been valued at approximately $1,055,000.

Zmail is a development stage company that has recently commencedoperations as an Internet Public Access Terminal (iPAT) provider. The business of an iPATprovider is to permit quick and reliable access to the Internet-regardless of location,allowing the traveling public to access the Internet, send and receive e-mail, to conducte-Commerce transactions, to surf the Web, to print documents and other applications fromremote locations. 

Zmail intends to purchase technology and hardware from TelWeb, aleading equipment vendor and subsidiary of Schlumberger. The cost of installation of eachZmail station is approximately $8,000 including equipment. It is our intention  tomake our own installations and acquire operating locations from third parties. We will bedependent upon raising additional capital in order to finance Zmail's business expansion,which will be used principally to purchase and/or lease equipment from OEM's such asTelWeb and to pay sales and marketing expenses necessary to secure good, high traffic sitelocations, until such time, if ever, as Zmail shall be able to generate sufficient cashflow from operations.  

To date we have advanced approximately $189,000 for thebusiness of Zmail to fund Zmail's business expansion. These funds were raised by usprincipally through the sales of restricted stock to accredited investors. Reference ismade to Part II, Item 2, "Changes in Security" and Note 3 to the Notes toConsolidated Financial Statements regarding the sales of restricted securities. We projectthat during the remainder of 2001, we will require approximately $500,000.We will bedependent upon our ability to secure financing for Zmail's development at termssatisfactory to us, whether from the sale of additional restricted shares, the offer andsale of securities pursuant to a registration statement under the Securities Exchange Actof 1933, as amended (the "Act") or other sources of financing, of which therecan be no assurance. We will be competing with many other iPAT providers that will havefar greater financial and other resources than the Company and there can be no assurancethat we will be able to successfully compete in this relatively new market.

Results of Operations 

During the three-month period ended March 31, 2001, we had revenues of$633,720, compared to revenues of $81,860 for the three-month period ended March 31,2000. The increase in revenues by $551,860 during the three-month period ended March 31,2001 as compared to March 31, 2000 is the result of our acquisitions of Beeper Boutique,and Camera's Etc., which increased our retail presence from one location at March 31, 2000to 10 locations at March 31, 2001. 

We incurred a net loss of $297,569 ($0.007 per share) during thethree-month period ended March 31, 2001, compared to a net loss of $205,445 ($0.03 pershare) for the comparable three-month period in 2000. The primary reason for the increasein our net loss during the first quarter of 2001 compared to the first quarter of 2000 isthe increase in personnel expense from $74,753 to $266,999 (an increase of approximately$192,246) related to our acquisitions and additional staff from operating additionalretail stores. In addition, we had increased rent expenses related to the increased numberof retail stores. 

There are no known trends, events or uncertainties that have had orthat are reasonably expected to have a material adverse impact on the net sales orrevenues or income from our continuing operation. There is an increasing trend toward useof pagers and wireless cellular telephones and other wireless equipment by all segments ofthe population, including prepaid and regular use. We expect to benefit from this trend inthe Texas Gulf Coast market. We also expect continued increased revenues from ouracquisitions Beeper Boutique and Cameras, Etc. We anticipate that we will benefit from theincreased market share in the South Texas and Louisiana area. There are no seasonalaspects that have any material effect on our financial condition or results of operations.There is also an increased use of iPAT devices, and we expect to begin to generaterevenues from our Zmail subsidiary as we have commenced installations after the quarterended March 31, 2001 and will continue to make further installations during subsequentperiods. We will also explore possible acquisitions of locations operated by other iPATsfor our Zmail subsidiary.

Liquidity and Capital Resources 

At March 31, 2001, we had current assets of $851,948 compared tocurrent assets of $535,791 at December 31, 2000, an increase of 60%. The increase incurrent assets is primarily the result of an increase in cash by approximately $90,000,increase to $321,861 in accounts receivable, principally due to the increased number ofretail stores. Our level of inventory did not change significantly during the firstquarter ended March 31, 2001 compared to December 31, 2000. 

Non-current assets and other assets decrease insignificantly. Thechange in those accounts was principally due to depreciation and amortization of goodwill.

Our current liabilities of March 31, 2001 were $649,771, which is onlyan insignificant decrease compared to $699,585 at December 31, 2000. Our accounts payableat March 31, 2001 declined to $273,648 from $294,929 at December 31, 2000.

Our long-term liabilities were $202,524 at March 31, 2001 compared to$289,169 at December 31, 2000, which represents a decrease by 30% due to repayments ofloans to officers. Stockholders' equity increased to $981,029 at March 31, 2001 comparedto $547,483 at December 31, 2000 as a result of the issuance of additional shares.

Subsequent to the year ended December 31, 2000 and prior to the end ofthe quarter ended March 31, 2001, we received $644,615 from private investors inconsideration for the issuance of 10,600,000 restricted shares of common stock of theCompany. In addition, we issued 2,850,000 restricted shares in consideration for servicesand future services.

We had a negative cash flow from operating activities during the periodended March 31, 2001 of $435,180. The negative cash flow from operating activitiesincreased by $190,000 compared to the same period in the prior year. This increase in cashflow used in operating activities was principally due to an increased net loss and cashoutflow associated with increased accounts receivable. We did not have material investingactivities during the period ended March 31, 2001. Cash flow provided by financingactivities consisted mainly of proceeds from the issuance of restricted shares inconnection with raising capital to finance our negative cash flow from operations. We hadcash of $158,673 at March 31, 2001 compared to cash of $81,524 at December 31, 2000.

Prior to the acquisition of all of the capital stock of Zmail, weadvanced approximately $189,000 and this acquisition  is likely to adversely impactour liquidity, at least during the short term. While we expect in the future that theacquisition of Zmail will generate a positive cash flow for us, we must also fund ourpurchase of Zmail with cash and securities as well as pay the ongoing operating expensesof Zmail. 

There is also a trend in the wireless industry toward rapidtechnological change and development, but such trend should not adversely impact uponresellers and retail operators. As a result, other than the current portion of ourlong-term and capital leases, we do not know of any trends, events or uncertainties thathave or are reasonably likely to have a material impact on our short-term or long-termliquidity. Our liquidity and ability to fund operations has been the result of operatingrevenues as well as sales of our securities to private investors. 
**PART II. OTHER INFORMATION 

Item 1. Legal Proceedings 

We are not a party to any litigation that is material. 
**Item 2. Changes in Security 

During the three month period ended March 31, 2001, we issued andsold 10,600,000 shares that were not registered under the Act. We relied upon Section 4(2)and the private placement rules under the Act as the basis for the exemption from theregistration requirements of the Act. The shares were sold to private investors who are"accredited investors" as defined under Rule 501(a)(3) under the Act. Inaddition, immediately after the end of the quarter, we issued 17,592,455 restricted shares to the formershareholders of Zmail in connection with the acquisition.
**Item 3. Default Upon Senior Securities 

None 
**Item 4. Submission of Matters to a Vote of Security Holders 

None 
**Item 5. Other Information**
ffordable Telecommunications TechnologyCorporation  (the "Company") is filing as part of this Quarterly Report onForm 10-QSB for the three-month period ended March 31, 2001, disclosure under Item 5,Other Information, regarding changes in registrant's certifying accountant. The Company atits option may report under Part II, Item 5 of Form 10-QSB any information not previouslyreported in a report on Form  8-K. This disclosure on Form 10-QSB, Part II, Item 5,means that the Company is not required to otherwise file this information on Form 8-K. TheCompany's former accountant notified that it was dismissed on May 2, 2001 and theengagement of its new accountants was effective on May 10, 2001, as disclosed below

(a) (1) Previous Independent Accountant
(i) By letter dated April 27,    2001, by action of the Company's board of directors, the engagement of Liebman Goldberg    & Drogin LLP, the independent accounting firm was terminated. Liebman, Goldberg &    Drogin, LLP is the firm that had audited the Company's financial statements for its years    ended December 31, 2000 and 1999. Liebman, Goldberg & Drogin, LLP were informed that    they were dismissed on May 2, 2001. The Company has engaged the firm of Thomas Leger &    Co., LLP as its independent public accountant for 2001 on May 10, 2001.  As a result,    Liebman Goldberg & Drogin LLP did not resign nor did they decline to stand for    re-election. (ii) The report of Liebman    Goldberg & Drogin LLP on the financial statements of the Company for the fiscal year    ended December 31, 2000 that were included in the Company's Annual Report for the year    ended December 31, 2000, filed on April 3, 2001 contained no adverse opinion or disclaimer    of opinion and was not qualified or modified as to uncertainty, audit scope, or accounting    principles.(iii) The decision to change    accountants was a result of the determination of the Company to utilize an accounting    firm with offices in Houston, TX. (iv) During the Company's    fiscal year ended December 31, 2000 and through the date of this Quarterly Report on Form    10-QSB, the Company has had no disagreements with its former accountants, Liebman Goldberg    & Drogin LLP whether or not resolved, on any matter of accounting principles or    practices, financial statement disclosure, or auditing scope or procedure, which,  if    not resolved to the former accountant's satisfaction, would have caused it to make a    reference to the subject matter of the disagreement(s) in connection with its report on    the financial statements of the Company for its year ended December 31, 2000.(v) The Company has requested    that Liebman Goldberg & Drogin LLP furnish it with a letter addressed to the    Securities and Exchange Commission stating whether  it agrees with the above    statements and, if not, the respect in which it does not agree. A copy of such letter,    dated May 14, 2001 is filed as Exhibit 16 to this Form 10-QSB.
(a) (2) Engagement of New Independent Accountant.
Effective on May 10, 2001, Thomas Leger & Co., LLP,    Houston, TX, was engaged by the Company as its new independent accountant to audit the    Company's financial statements.
(a) (3) The Company has provided the formeraccountant with a copy of the disclosures it is making in response to this Item 5 prior tothe filing of this Form 10-QSB and requested that the former accountant furnish a letteraddressed to the Commission stating whether it agrees with the statements made by theCompany and, if not, the respect in which it does not agree.
**Item 6. Exhibits and Reports on Form 8-K 

(a) Exhibits: 
Exhibit No 
Document Description 3(i) Articles of Incorporation and amendments (filed as Exhibits    to the Company's Annual Report on Form 10-KSB for the year ended December 31, 1999 and    incorporated herein by reference) 3(ii) Bylaws (filed as Exhibit to the Company's Annual Report on    Form 10-KSB for the year Ended December 31, 1999 and incorporated herein by reference) 16Letter on Change in Certifying Accountant dated May 14,    200199.1Safe Harbor Compliance Statement for Forward-Looking    Statements99.2Agreement and Plan of Exchange Between the Company and    Zmailmedia, Inc.
(b) Form 8-K. 

During the quarter ended March 31, 2001, the Company did not file anyReports on Form 8-K. 

  
**SIGNATURES 

In accordance with Section 12 or 15(d) of the Exchange Act, the small business issuerhas caused this report to be signed on its behalf by the undersigned, thereunto dulyauthorized. 

AFFORDABLE TELECOMMUNICATIONS TECHNOLOGY CORPORATION 
By: /s/ Steven H. Bethke Steven H. Bethke, President, Chief Executive Officer and Director Dated: May 14, 2001 Houston, TX 
In accordance with the Exchange Act, this report has been signed below by the followingperson on behalf of the small business issuer and in the capacities and on the datesindicated. 

By: /s/ Steven H. Bethke 

Steven H. Bethke 

 

Exhibit 16
May 14, 2001  Securities and Exchange Commission450 Fifth Street, N.W.Washington, D.C.20549Re: File No. 0-28175  Gentlemen:  
We had been engaged as the    principal accountants for Affordable Telecommunications Technology Corporation (the    "Company") and on March 28, 2001 we reported on the consolidated financial    statements of the Company as of December 31, 2000 and for the year then ended. On May 2,    2001, we were informed that we were dismissed as the principal accountants for the    Company. We have read the Company's statements included pursuant to Part II, Item 5    "Other Information" in its Form 10-QSB for the three-month period ended March    31, 2001. At the request of the Company, we hereby state that we agree with the statements    included in Item 5 that relate to our firm.  Very truly yours,     /s/ Liebman Goldberg & Drogin, LLP
Exhibit 99.1

PRIVATE SECURITIES LITIGATION REFORM ACT OF 1995 SAFEHARBOR COMPLIANCE STATEMENT FOR FORWARD-LOOKING STATEMENTS

In passing the Private Securities Litigation Reform Actof 1995 (the "Reform Act"), 15 U.S.C.A. Sections 77z-2 and 78u-5 (Supp. 1996),Congress encouraged public companies to make "forward-looking statements" bycreating a safe harbor to protect companies from securities law liability in connectionwith forward-looking statements. Affordable Telecommunication Technology Corporation (the"Company") intends to qualify both its written and oral forward-lookingstatements for protection under the Reform Act and any other similar safe harborprovisions.

"Forward-looking statements" are defined bythe Reform Act. Generally, forward-looking statements include expressed expectations offuture events and the assumptions on which the expressed expectations are based. Allforward- looking statements are inherently uncertain as they are based on variousexpectations and assumptions concerning future events and they are subject to numerousknown and unknown risks and uncertainties which could cause actual events or results todiffer materially from those projected. Due to those uncertainties and risks, theinvestment community is urged not to place undue reliance on written or oralforward-looking statements of the Company. The Company undertakes no obligation to updateor revise this Safe Harbor Compliance Statement for Forward-Looking Statements (the"Safe Harbor Statement") to reflect future developments.

 

Exhibit 99.2
**AGREEMENT AND PLAN OF EXCHANGE**
**THIS AGREEMENT AND PLAN OF EXCHANGE** (hereinafter called the"**EXCHANGE AGREEMENT**") is made and deemed effective the 12thday of February 2001, by and between ZMAILMEDIA, INC., a Texas corporation("ZMAIL") and AFFORDABLE TELECOMMUNICATIONS TECHNOLOGY CORPORATION, a Texascorporation ("ATTP"). ZMAIL and ATTP are sometimes referred to as the"Constituent Corporations" with reference to the following facts:
- The authorized capital stock of ATTP consists of one hundred million (100,000,000)    shares of common stock. The authorized preferred stock of ATTP consists of ten million    (10,000,000) shares of preferred stock.
- There are 3,518,491 shares of common stock of ZMAIL issued and outstanding as of the    date of this plan.
- The directors of the Constituent Corporations deem it advisable and to the advantage of    said corporations that ATTP acquire all of the issued and outstanding shares of ZMAIL in a    share exchange by and between the Constituent Corporations upon the terms and conditions    herein provided.
**NOW, THEREFORE, the parties do hereby adopt the Plan of Exchangeencompassed by this Agreement and do hereby agree that ATTP shall acquire ZMAIL on thefollowing terms, conditions and other provisions:

1.**TERMS AND CONDITIONS**
**Exchange. ATTP shall acquire all of the issued and outstandingcommon stock of ZMAIL in a stock exchange as follows:
**Exchange for all Outstanding Stock On the Closing date, ATTPshall assign, convey, endorse, transfer and deliver to each ZMAIL shareholder on the ZMAILShareholder list five (5) shares of common stock of ATTP for each one (1) share (roundeddown as applicable) of ZMAIL common stock owned of record on the effective date("EXCHANGE RATE"). No partial ATTP shares shall be issued.
**Transfer and Exchange. The assignment, conveyance, and transferof the ZMAIL Shares shall be effected by ATTP’s issuance, execution and delivery ofall the shares set forth in this agreement as follows: ATTP shall deliver to ZMAIL’srepresentative a certificate for each Zmail shareholder based on the Exchange Rate. Uponreceipt of the ATTP shares, ZMAIL shall cancel each stock certificate for each shareholderof Zmail. Such issuance shall be effected by ATTP and ZMAIL in a timely manner afterclosing, and said stock certificates, shall be satisfactory in form and substance to ZMAILand shall be effective to vest in each shareholder of ZMAIL all right, title and interest,in and to the ATTP Shares issued. All shares issued shall be issued with a restrictivelegend. 
Succession. On the Effective Date, ZMAIL shall continue its corporate existence under 

the laws of the State of Texas, as a wholly owned subsidiary of ATTP.

2.**CHARTER DOCUMENTS, DIRECTORS AND OFFICERS**
Certificate of Incorporation and Bylaws. The Certificate of Incorporation of ZMAIL in      effect on the Effective Date shall continue to be the Certificate of Incorporation of      ZMAIL as a wholly owned subsidiary of ATTP. The Bylaws of ZMAIL shall be the Bylaws of      ZMAIL, a wholly owned subsidiary of ATTP, as they may be amended from time to time.
**Directors
. The directors of ZMAIL in connection with this Plan of Exchange shall      resign and the Directors of ATTP shall serve as the Directors of both ATTP and ZMAIL until      the expiration of their terms and until their successors are elected and qualified.
**Officers
. The officers of ZMAIL immediately preceding the Effective Date shall      remain the Officers of ZMAIL on and after the Effective Date to serve at the pleasure of      its Board of Directors.
**3. MISCELLANEOUS****Further Assurances
. From time to time, and when required by ATTP or by its      successors and assigns, there shall be executed and delivered on behalf of ZMAIL such      deeds and other instruments, and there shall be taken or caused to be taken by it such      further and other action, as shall be appropriate or necessary in order to vest or perfect      in or to conform of record or otherwise, in ATTP the title to and possession of all the      property, interests, assets, rights, privileges, immunities, powers, franchises and      authority of ZMAIL and otherwise to carry out the purposes of this Exchange Agreement, and      the officers and directors of ZMAIL, the wholly owned subsidiary are fully authorized in      the name and on behalf of ZMAIL or otherwise to take any and all such action and to      execute and deliver any and all such deeds and other instruments.
**Amendment
. At any time before or after the Effective Date, this Plan of Exchange may      be amended in any manner as may be determined in the judgment of the respective Board of      Directors of ATTP and ZMAIL to be necessary, desirable, or expedient in order to clarify      the intention of the parties hereto or to effect or facilitate the purpose and intent of      this Agreement.
**3.3**Conditions to Exchange**. The obligation of theConstituent Corporations to effect the transactions contemplated hereby is subject tosatisfaction of the following conditions (any or all of which may be waived by either ofthe Constituent Corporations in its sole discretion to the extent permitted by law):

the Exchanger shall have been approved by the stockholders of Zmail in accordance withapplicable provisions of the General Corporation Law of the State of Texas; and

any and all consents, permits, authorizations, approvals, and orders material toconsummation of the Exchange shall have been obtained.  
 

**IN WITNESS WHEREOF**, this Plan of Exchange, having first been  duly approved by the Board of Directors of ATTP and ZMAIL, is hereby executed on behalf of  each said corporation and attested by their respective officers thereunto duly authorized.
Signed: ZMAIL MEDIA, INC., A Texas corporation_____/s/___________________________ By:__/s/_____________________________Robert C. Hay, Secretary Neil Leibman, PresidentAffordable Telecommunications Technology Corporation. A Texas corporationBy:_____/s/_________________________Steven H. Bethke, President
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