Pareteum to Restructure Senior Secured Debt Obligation, Extending Maturity Date to December 31, 2018

NEW YORK, March 7, 2017

"At the end of 2016 we successfully reached a new agreement with our senior lender under which we were granted more flexible terms and lower interest rates as a result of the progress we have made to restructure the business to support future growth. After meeting with management and further reviewing our strategic plan, we believe today's amendments to that agreement demonstrate additional confidence in the execution of our turnaround and the growing opportunities we are now positioned to capitalize on," said Hal Turner, Pareteum's Executive Chairman. "We wish to thank our lender which continues to work with the Company and look forward to further demonstrating the underlying improvements in the business and the value we are creating for our customers, shareholders and other stakeholders."

"We continue to be impressed by the progress Hal and his team are making at Pareteum including its relationship with Vodafone, its largest customer, and the new partners, customers and additional management talent they have attracted in such a short amount of time," said Ivan Zinn of Atalaya. "We believe today's amendments will help support the business' ongoing turnaround and are pleased by the evidence of growing marketplace demand for its technology, creating interest that will assist the Company in continuing to build shareholder value."

Pursuant to the terms of the proposed amendment, the Amended and Restated Agreement would be amended as follows: (i) a new maturity date on the $10.1 million of outstanding principal and premiums of the previously disclosed Amended and Restated Agreement of December 31, 2018; (ii) a new quarterly amortization schedule commencing at the end of Q1 2017 through Q4 2018; and (iii) a new financial covenants package which shall be agreed upon by the parties by April 30, 2017. Additionally, the Warrants will be amended as follows: (i) the aggregate amount of shares of common stock underlying the Warrants will be increased to 1,446,000 (post-reverse split); (ii) the exercise price of the Warrants will be set at the lesser of (a) $3.25 per share (post-reverse split) or (b) a 13% discount to the offering price of shares of common stock in an underwritten public offering of the Company; and (iii) the anti-dilution sections of the Warrants shall be removed.

The terms of the letter agreement are subject to, and conditioned upon, among other things, the execution and delivery of a formal amendment to the Amended and Restated Credit Agreement and Warrants, a reaffirmation of the parties' obligations thereunder, a reaffirmation of the security interests and guarantees granted by certain parties in connection therewith and the consummation of an equity offering.

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