CONCLUSION

IN WITNESS WHEREOF, the Parties hereto have caused this Settlement to be duly executed by their respective authorized representative(s) as of the date hereof.

CONSUMER SERVICES DIVISION,

By: /s/ RICHARD W. CLARK Date: 7/12/01

Richard W. Clark

Director of Consumer Services Division

/s/ CLEVELAND W. LEE Date: 7/12/01

Cleveland W. Lee

Staff Counsel

Attorney for CONSUMER SERVICES DIVISION

NATIONAL TELECOMMUNICATIONS, INC. (D.B.A. FUTURE-TEL COMMUNICATIONS); LONG DISTANCE CHARGES, INC.; AND LEAST COST ROUTING, INC.

By: /s/ NED GERSHENSON Date: 7/12/01

Ned Gershenson,

President and/or Chief Executive Officer

/s/ NED GERSHENSON Date: 7/12/01

Ned Gershenson

/s/ DORIS FISHER Date: 7/12/01

Doris Fisher

/s/ PATRICK E. MCMAHON Date: 7/12/01

Patrick E. McMahon

Attorney for

National Telecommunications, Inc.

(d.b.a. Future-Tel Communications);

Long Distance Charges, Inc.;

Least Cost Routing, Inc.;

Ned Gershenson; and Doris Fisher

TEL-SAVE, INC.

By: /s/ ALOYSIUS T. LAWN IV Date: 7/12/01

Aloysius T. Lawn IV

Executive Vice-President,

Secretary and General Counsel

/s/ THOMAS J. MACBRIDE Date: 7/12/01

Thomas J. MacBride

Attorney for Tel Save, Inc.

APPENDIX A - TABULATION OF EXISTING CUSTOMERS

RESTITUTION PAYMENT

TO ELIGIBLE CONSUMERS

Dear Consumer:

The Consumer Services Division (CSD) of the California Public Utilities Commission (Commission) is sending you this letter because our records indicate that you had complained concerning unauthorized switching of your toll/long distance carrier by Long Distance Charges, Inc. (LDC), and/or Least Cost Routing, Inc. (LCR). Because of such complaints, CSD investigated and the Commission and LDC and LCR have entered into a settlement.

According to the settlement, LDC and LCR have agreed to pay restitution to complainants in the amount of the enclosed check. This check is valid for a period of 90-days from the printed date of the check. You must cash or deposit this check within the 90-days, after which the check will be invalid.

Please contact CSD at 1-800-900-3985 if you have any questions regarding this letter.

Very truly yours,

Richard Clark, Director

Consumer Services Division

California Public Utilities Commission

Urgent Consumer Advisory

The California Public Utilities Commission (CPUC or Commission) is sending you this advisory because our records indicate that you are a current telephone customer of Long Distance Charges, Inc. (LDC) and/or Least Cost Routing, Inc. (LCR) ¹⁸for intrastate toll calling within California or interstate long-distance telephone services.

The Commission has ordered LDC and LCR to stop providing telephone service to consumers in California, beginning on the day after _______, 2001. On or before that date, you must switch from LDC or LCR to another toll and long distance telephone service carrier of your choice. If you do not switch by ______, 2001, you may have no toll or long distance telephone service after such date.

To find out who is your current toll and long distance telephone service carrier, examine your most recent telephone billing statement. It will state the name of the telephone company billing you for toll calls within California and for long-distance, interstate calls outside of California. Or, you may call your local telephone carrier (for example, Pacific Bell or GTEC) for this information.

To choose a new toll and long distance company, call your local telephone carrier, such as Pacific Bell or GTE, and notify them of your choice. Your local telephone carrier will charge you a fee for switching to another toll and long-distance carrier. Enclosed is a check for your deposit, to defray all or part of the cost for switching to another carrier.

Disregard this advisory if you determine that neither LDC nor LCR is currently your toll and/or long distance telephone service.

If you have questions about this letter, you may telephone toll-free the California Public Utilities Commission, Consumers Services Division, at 1-800-900-3985.

Aviso Urgente al Consumidor

Usted esta recibiendo esta carta porque su nombre se encuentra en la lista de personas que estan recibiendo servicio de telefono con Long Distance Charges, Inc. /Least Coast Routing, Inc. (LDC/LCR). Si Usted esta seguro que LDC/LCR no es su compania de toll o larga distancia, por favor ingnore esta carta. Si Usted no esta seguro en cual compania tiene servicio, debe de revisar su cuenta de larga distancia. Puede llamar su compania de telefonos local (por ejemplo Pacific Bell o GTE).

El Estado de California ha ordenado a LDC/LCRque descontinue sus servicios telefonicos en este estado. LDC/LCR no podra prestarles estos servicios despues del ________,2000. Si Usted no escoge otra compania para sus servicios de larga distancia, Usted podria perder temporalmente esos servicios. Para escojer una nueva compania de toll o larga distancia, Usted podria llamar a su compania local, pero es necesario notificarles. Si usted estan recibiendo servicio de telefono con LDC/LCR, la compania de telefonos local no les cobrara extra por cambiarse de compania telefonica para servicio de toll o larga distancia.

Si Usted tiene algun pregunta sobre el decision de la Comision, puede dejar un messaje en la contestadora del agente especial de la Comision la Sra. Telefono: 1-800-900-3985 Es importante que Usted entienda que el agente no le puede decir si LDC/LCR es su compania de larga distancia.