Family-Tel is dPi's first acquisition of 2008 and fifth overall.

David Dorwart, President and CEO of dPi Teleconnect.

dPi Teleconnect, a leading provider of prepaid services to credit and cash constrained consumers, has acquired Family-Tel, a competitor in the prepaid services industry.

As part of the agreement, dPi will acquire the services of some 200 Family-Tel Agents who support more than 6,800 customers. Family-Tel Agents operate mainly in smaller, independent locations, in contrast to dPi's core group of larger corporate-driven Agents. A former division of Rent Way, dPi is now majority owned by Rent-A-Center (Nasdaq: RCII).

According to David Dorwart, President and CEO of dPi, "We continue to execute our strategic consolidation program as we bring other CLEC's into the dPi operating company."

dPi acquired Vertex Communications in July, 2007, gaining 600 Agents and 25,000 customers (see story).

"Family-Tel is our first acquisition of 2008 and fifth overall. We are particularly excited about the potential for growth that this acquisition represents as Family-Tel has done a phenomenal job developing systems to support high prepaid customer volume in individual and small authorized Agent locations in the Midwest," added Dorwart.

Brad Warden, President and CEO of Family-Tel, sees the acquisition as beneficial for his company, as well.

"dPi represents a great opportunity for the Agents and Customers of Family-Tel. Adding dPi's solid financial stability, effective administrative capacity and dedicated back office support team to Family-Tel's strong commitment to Agent service places us in a powerful operating position. There is no better scenario for the Agents and Customers of Family-Tel."

Mr. Warden will remain associated with his Agents and with dPi Teleconnect as an independent consultant where he will manage current Agents and assist dPi with its growth plan. dPi anticipates further acquisitions as the prepaid service industry continues to consolidate.

dPi Teleconnect provides communication and utility services to both commercial and residential accounts. dPi's prepaid residential services include home phone service, Internet, debit cards, Energy (Electric and Gas) and cellular products to the credit and cash constrained consumer. dPi also provides Energy (Electric and Gas) to commercial accounts, and the company is the preferred Energy provider to Agent locations in Texas where dPi provides one consolidated bill and rate while monitoring the stores' Energy consumption on a monthly basis. dPi also provides Agents with a business telephone line service where the Agent receives one consolidated bill for multiple locations with a reduced rate for business line service. The company's diversified catalog of products empowers Customers by supplying them with services essential to today's progressive society. dPi's Agent distribution network consists of more than 9,000 authorized payment centers giving customers convenient locations to make initial and renewal payments.