Spelman Research Raises Price Target on Farmstead Telephone Group

Raises Price Target from $8.25 to $12.25 


EAST HARTFORD, Conn., Aug. 25  /PRNewswire-FirstCall/ -- Farmstead Telephone Group, Inc. (AMEX:FTG) today announced that Spelman Research, an independent investment research firm, has released an updated analyst report on Farmstead Telephone Group, increasing its price target from $8.25 to $12.25. The report on Farmstead Telephone Group is available at http://www.spelmanresearch.com/ and also at http://www.runonideas.com/files/clients/FTG/reports/FTGSpelmanUpdate08232005.p df.

The updated report states, "We reiterate our Speculative Buy Rating on FTG following the recent announcement of quarterly financial results and the approaching 'moment of truth' for FTG -- the launch of its One IP Voice initiative in September. The stock gained close to 73% since the date of initiation of coverage on the company less than two months ago and we believe that there continues to be significant upside potential, over and above what other companies in the industry can offer."

Jean-Marc Stiegemeier, Farmstead's Chairman and CEO, said, "We are pleased that Spelman Research continues to recognize the significant growth potential of our strategy, and values our continued momentum as we seek to become the largest provider of Hosted telecommunications services to the national SMB market."

About Farmstead

Farmstead Telephone Group, Inc. is a national provider of telecommunications systems and services. As an Avaya partner it offers systems design, installation and services on a national basis. The Company is currently deploying its carrier based Hosted offerings through its One IP Voice subsidiary. Once the One IP Voice platform is fully deployed the Company intends to become the largest provider of Hosted telecommunications services to the SMB market nationally. Further information about Farmstead Telephone may be found at http://www.farmstead.com/.

This release contains forward-looking statements that involve risks and uncertainties. In addition to historical information, investors should consider carefully the risks associated with an investment in the Company's securities as previously outlined by the Company in its prior filings with the Securities and Exchange Commission.

  Contact:
   Mel Lipes
   Farmstead Telephone Group, Inc.
   Voice:  860-610-6005
   Fax:    [phone]
   OR
  Investor Contact:
   Alex Lewis or Dave Gentry
   Aurelius Consulting Group
   407-644-4256
   
   http://www.runonideas.com/

DATASOURCE: Farmstead Telephone Group, Inc.



CONTACT: Mel Lipes of Farmstead Telephone Group, Inc., [phone];

or Investor Contact: Alex Lewis or Dave Gentry, both of Aurelius Consulting

Group, [phone], 



Web site:  http://www.farmstead.com/

http://www.spelmanresearch.com/

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