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               EQUIPMENT SALES AGREEMENT
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This Sales  Agreement  ("Agreement")  is entered into by and between  Demetrious
Charalambous ("DC") and Internet Telecommunications Plc ("Customer").

1.       SALE OF  EQUIPMENT.  Customer  hereby  agrees to  purchase  from DC the
         equipment (the "Equipment") set forth as follows:
         9 DigiTalk switches
         4 Everyware  Soft Switches
         2 Server
         2 Database PC's

         Including all Software licence's

2. PRICE. The price and time for payment for the Equipment is as follows:
         The  Price of  (pound)350,000  will be the  purchase  price and will be
         exchanged  into  Internet  Telecommunication  Plc share of the value of
         49,998 at par value of (pound)7  on  exchange.  Any amounts  payable by
         Customer  hereunder  which  remain  unpaid  after the due date shall be
         subject  to a late  charge  equal to 1.5% per  month  from the due date
         until such amount is paid.
3.       DELIVERY.  DC shall use its reasonable efforts to deliver the Equipment
         to Customer on the delivery date set forth in Section 2. Delivery shall
         be made F.O.B.  at DC's  offices in London,  UK. If the delivery is not
         made within 30 days of the scheduled  delivery date, other than because
         of the fault of Customer  or by FORCE  MAJEURE (as set forth in Section
         9(l)),  Customer  may  cancel  its  purchase  of  the  Equipment.   All
         transportation,   shipping  and  handling  charges  shall  be  paid  by
         Customer.  Customer  bears all risk of loss or damage to the  Equipment
         after delivery to the transportation shipping point.
4.       OPERATION OF THE EQUIPMENT. Customer shall be responsible for operation
         of the Equipment.  Customer shall operate the Equipment in a reasonably
         competent  manner and in compliance with the operations  manual for the
         Equipment.  Customer shall comply with all applicable rules,  laws, and
         regulations in connection with operation of the Equipment.

5.       INFRINGEMENT INDEMNITY. DC will defend and indemnify Customer against a
         claim  that the  Equipment  infringes  a United  Kingdom  copyright  or
         patent,  provided that:  (a) Customer  notifies DC in writing within 30
         days of the  claim;  (b) DC has sole  control  of the  defense  and all
         related settlement negotiations;  and (c) Customer provides DC with the
         assistance,  information  and  authority  necessary  to  perform  CDC's
         obligations  under  this  Section.  Reasonable  out-of-pocket  expenses
         incurred by Customer in providing such assistance will be reimbursed by
         DC. DC shall have no liability for any claim of  infringement  based on
         use of  Equipment  altered by Customer.  In the event the  Equipment is
         held or is believed by DC to infringe, DC shall have the option, at its
         expense,  to (a) modify the Equipment to be no  infringing;  (b) obtain
         for Customer a license to continue using the  Equipment;  or (c) refund
         the fees paid for the  Equipment.  This  Section 5 states  DC's  entire
         liability   and   Customer's   exclusive   remedy   for   infringement,
         misappropriation or related claims.

         6. DISCLAIMERS AND WARRANTY.

a.       DC  warrants  to the  original  purchaser  of  Equipment  that  for the
         Warranty  Period (as defined  below),  the Equipment  will be free from
         material defects in materials and workmanship.  The foregoing  warranty
         is subject to the proper installation, operation and maintenance of the
         Equipment  in  accordance  with   installation   instructions  and  the
         operating manual supplied to Customer.  Warranty claims must be made by
         Customer in writing  within sixty (60) days of the  manifestation  of a
         problem.  DC's sole obligation under the foregoing warranty is, at DC's
         option, to repair,  replace or correct any such defect that was present
         at the time of delivery,  or to remove the  Equipment and to refund the
         purchase price to Customer.
b.                The  "Warranty  Period"  begins on the date the  Equipment  is
                  delivered and  continues  for 12 months.  c. Any repairs under
                  this  warranty  must be conducted by an  authorized DC service
                  representative. d. Excluded from the warranty are problems due
                  to accidents, misuse, misapplication, storage damage,
                 negligence, or modification to the Equipment or its components.
e.                DC does not  authorize any person or party to assume or create
                  for it any other  obligation or liability in  connection  with
                  the Equipment except as set forth herein.
f.                THE  INDEMNITY IN SECTION 5 AND WARRANTY IN SECTION 6(a) ABOVE
                  IS  EXCLUSIVE  AND  IN  LIEU  OF  ALL  OTHER   INDEMNITIES  OR
                  WARRANTIES,  WHETHER EXPRESS OR IMPLIED, INCLUDING THE IMPLIED
                  WARRANTIES  OF  MERCHANTABILITY  AND FITNESS FOR A  PARTICULAR
                  PURPOSE.
DC and the  customer,  agree to the full  performance  of the  covenants  herein
contained.

IN WITNESS  WHEREOF,  they have executed  this  Agreement the day and year first
above written:

By: Demetris Charalambous

By: Charlie Yiasemis
Dated: 1st June 2004PAGE 1 OF 5               SOFTWARE LOAN AGREEMENT
                             SOFTWARE LOAN AGREEMENT

THIS AGREEMENT, made the 1st day of June, 2004, by and between CHARLIE YIASEMIS,
hereafter  called "CY", and INTERNET  TELECOMMUNICATIONS  PLC,  hereafter called
"ITPLC". CY and ITPLC, for the consideration hereafter named, agree as follows:
Under the General  Conditions of Loan attached to this sheet, CY hereby Loans to
ITPLC all Software named and identified in the following "List of Software," for
use at such  location  and at such Loan rate for  approximately  such time as is
therein stated. CY shall furnish such Software, F.O.B., in operative condition.

<TABLE>
<CAPTION>
LIST OF SOFTWARE
------------------- ----------------- ----------------- ------------------- ---------------- ----------------
  DESCRIPTION OF      LOCATION OF       DURATION OF           ITPLC          LOAN RATE PER   LOAN RATE UNIT
     SOFTWARE         SOFTWARE USE      SOFTWARE USE      IDENTIFICATION      ARTICLE ((POUND))        (DAILY,
                                                              NUMBER                            MONTHLY)
------------------- ----------------- ----------------- ------------------- ---------------- ----------------
<S>                 <C>               <C>               <C>                 <C>              <C>
    Navigator            London          24 months           ITPLC001             Nil              Nil
------------------- ----------------- ----------------- ------------------- ---------------- ----------------
    IT Billing           London          24 months           ITPLC002             Nil              Nil
------------------- ----------------- ----------------- ------------------- ---------------- ----------------
     Website             London          24 months           ITPLC003             Nil              Nil
------------------- ----------------- ----------------- ------------------- ---------------- ----------------
</TABLE>

ITPLC and CY, for themselves,  their successors,  executors,  administrators and
assigns, agree to the full performance of the covenants herein contained.

IN WITNESS  WHEREOF,  they have executed  this  Agreement the day and year first
above written:

ITPLC
By: Petrula Demetriou

CY

By: Charlie Yiasemis

<PAGE>

                      GENERAL CONDITIONS OF SOFTWARE (LOAN)

The conditions of lease here below stated, together with the Agreement set forth
on the reverse  side of this sheet,  constitute  a contract  between the parties
therein named which contract is hereafter referred to as "this Agreement".

1) LOAN PERIOD.  The Loan period shall cover all time  consumed in  transporting
the  Software,  including  the date of legal  delivery  to a public  carrier for
transit to ITPLC and upon return of the Software,  the date of legal delivery by
such carrier to CY, or if no public carrier is used, shall include the date upon
which transit to ITPLC begins and the date upon which transit from ITPLC ends at
CY's unloading point.

2) LOAN CHARGES. ITPLC shall pay Loan for the entire Loan Period on each article
of Software named in the List of Software, at the rate therein stipulated and in
accordance with the following: a) Monthly Loan Rates shall not be subject to any
deductions on account of any non-working time in the
                  month.  The amount of Loan payable for any fraction of a month
                  at  the  beginning  or end of the  Loan  Period  shall  be the
                  monthly  Loan  rate,  prorated  according  to  the  number  of
                  calendar days in such fraction.
b)                Daily Loan Rates  shall not be subject to  deductions  for any
                  non-working  time in the  day  and  shall  be  paid  for  each
                  calendar  day in the month except  Sundays and legal  holidays
                  upon which the  Software  is not  operated.  Daily and monthly
                  Loan rates  stipulated in the List of Software  contemplate an
                  operating  day of a regular  single  shift of eight (8) hours,
                  and for each hour over such eight (8) hours that the  Software
                  is operated  these rates shall be increased six (6) percent of
                  the daily rate  throughout  such period as the  Software is so
                  operated.
c)                Unit of Work  Rates  shall be paid  for  each  unit of work in
                  which the Software participates, and the amount of Loan shall,
                  unless otherwise agreed in writing be determined by the number
                  of units shown in the  supervising  engineer's or  architect's
                  estimates.
3)                PAYMENT. The Loan for any and every item of Software described
                  in the List of Software shall be the amount therein designated
                  and is  payable  in  advance  on the first day of each  month.
                  ITPLC shall pay CY interest at nil percent (0%) or the highest
                  lawful rate,  whichever is greater,  on any delinquent payment
                  from the date when such  payment was due until paid and on any
                  other sum for breach of this  Agreement,  from the date of the
                  breach,  and expenses of collection or suit,  including actual
                  attorneys' fees.

4)                SECURITY DEPOSIT.  Any security deposit paid by ITPLC to CY is
                  paid to guarantee ITPLC's full and faithful performance of all
                  terms,  conditions and provisions of this Agreement.  If ITPLC
                  shall  so  perform,  an equal  sum  shall  be  repaid  without
                  interest to ITPLC at the termination of this Agreement.

5)                FEES,  ASSESSMENTS,  AND TAXES PAID BY ITPLC.  ITPLC shall pay
                  all license fees,  assessments,  and sales,  use, property and
                  excise, and other taxes or hereafter imposed,  and relating to
                  ITPLC's use or possession of the Software (if applicable).

6)                RECALL  NOTICE.  CY may recall any or all Software  upon three
                  (3)  months  written  notice to ITPLC and the ITPLC may return
                  any or all Software upon a like notice to the CY.

7)                MAINTENANCE  AND  OPERATION.  ITPLC shall not  remove,  alter,
                  disfigure or cover up any  numbering,  lettering,  or insignia
                  displayed  upon the Software,  and shall see that the Software
                  is not subjected to careless,  unusually or  needlessly  rough
                  usage;  and  ITPLC  shall  at his  own  expense  maintain  the
                  Software and its  appurtenances  in good repair and  operative
                  condition,  and return it in such  condition  to CY,  ordinary
                  wear  and  tear   resulting  from  proper  use  thereof  alone
                  expected.

8)                REPAIRS.  The  expense  of all  repairs  made  during the Loan
                  Period, including labor, material, parts and other items shall
                  be paid by ITPLC.

9)                OPERATORS.  Unless otherwise mutually agreed in writing, ITPLC
                  shall supply and pay all operators on the Software  during the
                  Loan  Period.  All  operators  shall be  competent.  Should CY
                  furnish any operators or other workmen for the Software,  they
                  shall be employees of ITPLC during the Loan Period,  and ITPLC
                  shall pay them  salary  or wages and all other  cost if agreed
                  from  time  to  time.  ITPLC  shall  provide  and  pay for all
                  workmen's  compensation  insurance  and pay all payroll  taxes
                  required by law and applying to such operators and workman.

10)               DISCLAIMER OF WARLOANIES.  CY, BEING NEITHER THE MANUFACTURER,
                  NOR A  SUPPLIER,  NOR A  DEALER  IN  THE  SOFTWARE,  MAKES  NO
                  WARLOANIES,  EXPRESS OR IMPLIED,  AS TO ANY MATTER WHATSOEVER,
                  INCLUDING,  WITHOUT LIMITATION, THE CONDITION OF THE SOFTWARE,
                  ITS   MERCHANTABILITY,   ITS   DESIGN,   ITS   CAPACITY,   ITS
                  PERFORMANCE,  ITS MATERIAL,  ITS WORKMANSHIP,  ITS FITNESS FOR
                  ANY PARTICULAR  PURPOSE, OR THAT IT WILL MEET THE REQUIREMENTS
                  OF ANY LAWS, RULES, SPECIFICATIONS, OR CONTRACTS WHICH PROVIDE
                  FOR  SPECIFIC   APPARATUS  OR  SPECIAL  METHODS.   CY  FURTHER
                  DISCLAIMS ANY LIABILITY WHATSOEVER FOR LOSS, DAMAGE, OR INJURY
                  TO ITPLC OR THIRD  PARTIES AS A RESULT OF ANY DEFECTS,  LATENT
                  OR  OTHERWISE,  IN THE  SOFTWARE.  AS TO CY,  ITPLC LEASES THE
                  SOFTWARE "AS IS". CY SHALL NOT BE LIABLE IN ANY EVENT TO ITPLC
                  FOR ANY  LOSS,  DELAY,  OR  DAMAGE  OF ANY  KIND OR  CHARACTER
                  RESULTING FROM DEFECTS IN, OR INEFFICIENCY OF, SOFTWARE HEREBY
                  LEASED OR ACCIDENTAL BREAKAGE THEREOF.

11)               INDEMNITY.  ITPLC  shall  indemnify  CY  against,  and hold CY
                  harmless   from,   any  and  all   claims,   actions,   suits,
                  proceedings,   costs,  expenses,   damages,  and  liabilities,
                  including  attorneys fees,  arising out of, connected with, or
                  resulting  from the  Software or the Loan,  including  without
                  limitation,  the manufacture,  selection,  delivery,  leasing,
                  Loaning, control,  possession, use, operation,  maintenance or
                  return of the Software.  ITPLC shall further indemnify CY, and
                  hold CY  harmless  from all loss and  damage  to the  Software
                  during the Loan  period.  ITPLC  recognizes  and  agrees  that
                  included  in  this  indemnity  clause,   but  not  by  way  of
                  limitation, is ITPLC's assumption of any and all liability for
                  injury:  disability  and death of  workmen  and other  persons
                  caused  by  the  operation,   use,   control,   handling,   or
                  transportation of the Software during the Loan Period.

12)               RISK OF LOSS. CY shall not be  responsible  for loss or damage
                  to property,  material,  or Software  belonging to ITPLC,  its
                  agents, employees, suppliers, or anyone directly or indirectly
                  employed by ITPLC while said material property, or Software is
                  in CY's care, custody, control or under CY's physical control.
                  ITPLC is encouraged to obtain appropriate Software,  material,
                  or installation  floater  insurance against such risk of loss.
                  ITPLC and its insurers waive all rights of subrogation against
                  CY for such losses.

13)               INSPECTION:  CONCLUSIVE PRESUMPTIONS.  ITPLC shall inspect the
                  Software within three (3) business days after receipt thereof.
                  Unless ITPLC within said period of time gives  written  notice
                  to CY,  specifying any defect in or other proper  objection to
                  the  Software.  ITPLC  agrees  that it shall  be  conclusively
                  presumed,  as  between  CY and  ITPLC,  that  ITPLC  has fully
                  inspected  and  acknowledged  that  the  Software  is in  full
                  compliance with the terms of this agreement, in good condition
                  and repair,  and that ITPLC is satisfied with and has accepted
                  the Software in such good condition and repair.  CY shall have
                  the right at any time to enter the  premises  occupied  by the
                  Software  and shall be given free access  thereto and afforded
                  necessary facilities for the purpose of inspection.

14)               OWNERSHIP. CY shall at all times retain ownership and title of
                  the  Software.  ITPLC  shall give CY  immediate  notice in the
                  event that any of said  Software is levied upon or is about to
                  become liable or is threatened  with seizure,  and ITPLC shall
                  indemnify  CY  against  all loss and  damages  caused  by such
                  action.

15)               DEFAULT;  REMEDIES.  If (a) ITPLC shall default in the payment
                  of any Loan or in making any other payment hereunder when due,
                  or (b) ITPLC  shall  default  in the  payment  when due of any
                  indebtedness  of ITPLC  to CY  arising  independently  of this
                  lease,  or (c) ITPLC shall default in the  performance  of any
                  other covenant herein and such default shall continue for five
                  days after written  notice hereof to ITPLC by CY, or (d) ITPLC
                  becomes  insolvent or makes an  assignment  for the benefit of
                  creditors,  or  (e)  ITPLC  applies  for  or  consents  to the
                  appointment of a receiver,  trustee, or liquidator of ITPLC or
                  of all or a substantial  part of the assets of ITPLC under the
                  Bankruptcy Act, or any amendment thereto  (including,  without
                  limitation,  a petition for  reorganization,  arrangement,  or
                  extension) or under any other  insolvency law or law providing
                  for  the  relief  of  debtors,  then,  if and  to  the  extent
                  permitted by applicable  law. CY shall have the right to under
                  any other  insolvency  law or law  providing for the relief of
                  debtors,  then,  if and to the extent  permitted by applicable
                  law.  CY shall have the right to  exercise  any one or more of
                  the following remedies.
         (a) To declare the entire amount of Loan hereunder  immediately due and
         payable  as to any or all  items of the  Software,  without  notice  or
         demand  to  ITPLC.  (b) To sue for and  recover  all  Loans,  and other
         payments,  then accrued or thereafter accruing,  with respect to any or
         all items of he Software.
         (c) To take  possession  of any or all  items of the  Software  without
         demand,  notice, or legal process,  wherever they may be located. ITPLC
         hereby  waives  any and  all  damages  occasioned  by  such  taking  of
         possession.  Any said  taking  of  possession  shall not  constitute  a
         termination of this lease as to any or all items of Software  unless CY
         expressly so notifies ITPLC in writing.  (d) To terminate this lease as
         to any or all items of Software.
         (e) To pursue any other remedy at law or in equality.

Notwithstanding  any said  repossession,  or any other action which CY may take,
ITPLC shall be and remain liable for the full  performance of all obligations on
the part of ITPLC to be  performed  under  this  Lease.  All such  remedies  are
cumulative, and may be exercised concurrently or separately.

16) NO SUBLETTING ASSIGNMENT. No Software shall be sublet by ITPLC, nor shall he
assign or transfer any interest in this Agreement without written consent of CY.
CY may assign this Agreement  without  notice.  Subject to the  foregoing,  this
Agreement inures to the benefit of, and is binding upon, the heirs,  successors,
and assigns of the parties hereto.

17) RIGHT OF PURCHASE. ITPLC shall within the period of the loan have a right of
purchase of the Software and all its intellectual property and rights thereto at
a value to be  confirmed by third party  valuation,  but in any event such value
shall   not  be  less   than  one   million   five   hundred   thousand   pounds
((pound)1,500,000) unless otherwise agreed by CY.

18) REMEDIES CUMULATIVE: NO WAIVER;  SEVERABILITY.  All remedies of CY hereunder
are  cumulative  and  may,  to  the  extent   permitted  by  law,  be  exercised
concurrently  or  separately,  and the  exercise of any one remedy  shall not be
deemed to be an election of such remedy or to preclude the exercise of any other
remedy. No failure on the part of the CY to exercise and no delay in exercising,
any right or remedy,  hereby shall  operate as a waiver  thereof;  nor shall any
single or partial exercise by CY of any right or remedy  hereunder  preclude any
other or further  exercise thereof or the exercise of any other right or remedy.
If any term or provision of this lease is found invalid, it shall not affect the
validity and enforcement of all remaining terms and provisions of this lease.

19) EXPENSES.  ITPLC shall pay CY all costs and expenses,  including  attorneys'
fees,  incurred by CY in exercising  any of its rights or remedies  hereunder or
enforcing any of the terms, conditions, or provisions hereof.

20) ENTIRE AGREEMENT.  This instrument  constitutes the entire agreement between
CY and  ITPLC;  and it shall not be  amended,  altered  or  changed  except by a
written agreement signed by the parties hereto.

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