WQN, Inc. Announces Delisting of Its Common Stock By Nasdaq; Common Stock to Trade on Pink Sheets Beginning July 3, 2006

On June 29, 2006, WQN, Inc. (the "Company") received
notification from The Nasdaq National Market ("Nasdaq") Listing
Qualifications Panel (the "Panel") that the Company's securities will
be delisted from the Nasdaq Capital Market effective at the open of
business on Monday, July 3, 2006.
   This action was a result of the Panel determining that the Company
has not met the requirement that it be current in its required
reporting obligations, principally because of the Company's failure to
file its Form 10-QSB for the quarter ended March 31, 2006, and because
Nasdaq determined that the Company is a "public shell," which, in
Nasdaq's determination, could be detrimental to the interests of the
investing public.
   On or before July 14, 2006, the Company may request that Nasdaq
Listing and Hearing Review Council review the decision of the Panel to
delist the Company's securities from the Nasdaq Capital Market.
However, there can be no assurance that any such request will be
successful. The Company will attempt to regain compliance with the
Nasdaq listing requirements while it determines whether to appeal the
Panel's decision.
   Following delisting from the Nasdaq Capital Market, the Company
expects that quotations for its securities will appear in the Pink
Sheets, LLC, a voluntary quotation system for over-the-counter
securities, which may result in a reduction in the liquidity and the
trading volume of the Company's common stock. Information regarding
the Pink Sheets is available at http://www.pinksheets.com/. This lack
of liquidity may also make it difficult for the Company to raise
additional capital, if necessary.

   About WQN, Inc.:

   WQN, Inc. (OTC: WQNI) is a diversified operating company targeting
small to middle market growth-oriented companies primarily focused in
the financial services, technology/telecommunications, business
services and business distribution and real estate industries.
Management seeks to make both controlling and minority investments in
companies. WQN, Inc. is headquartered in New York, New York and has
offices in Dallas, Texas. For more information about WQN, Inc., please
visit the company's Web site at http://www.wqni.com.

   Notice Regarding Forward-Looking Statements:

   This release may contain forward-looking statements, which are
made pursuant to the safe harbor provisions of the Private Securities
Litigation Reform Act of 1995 and, as a result, should be considered
subject to the many uncertainties that exist in WQN, Inc.'s operations
and business environment. Such statements consist of any statement
other than a recitation of historical fact and can be identified by
the use of forward-looking terminology such as "may," "expect,"
"anticipate," "estimate," or "continue" or the negative thereof or
other variations thereon or comparable terminology. The reader is
cautioned that all forward-looking statements are necessarily
speculative and there are numerous risks and uncertainties that could
cause actual events or results to differ materially from those
referred to in such forward-looking statements. WQN, Inc.'s future
business plans, prospects and objectives may change as a result of, or
be impacted by, a number of factors. Such factors include, but are not
limited to: WQN, Inc.'s expansion and acquisition strategy, the
availability, impact and performance of operations and investments
that WQN, Inc. has made or intends to make, and general economic and
business conditions, including economic and business conditions in
those areas in which WQN, Inc. plans to invest and operate. These risk
factors and additional information are included in WQN, Inc.'s filings
with the Securities and Exchange Commission. All forward-looking
statements included in this document are based upon information
available to WQN, Inc. as of the date hereof, and WQN, Inc. assumes no
obligation to update any such forward-looking statement thus the
reader should not assume that silence by WQN, Inc. and its management
over time means that actual events are bearing out as estimated in
such forward-looking statements.