Pervasip’s Lender Cancels Warrants to Purchase 25 Million Shares of Stock

WHITE PLAINS, N.Y.--(BUSINESS WIRE)-- Pervasip Corp. (OTCBB: PVSP), a provider of Voice over Internet Protocol (VoIP) telephone services and smartphone applications, today announced that its lender has again cancelled warrants to purchase 25 million shares of Pervasip common stock. The lender has agreed to cancel cashless warrants to purchase 25 million shares of Pervasip common stock for each $50,000 of equity injected by an investor group, until all warrants are canceled upon the receipt of $300,000 in total. To date, cashless warrants to purchase 75 million shares of Pervasip common stock have been cancelled in total.

“The cancellation of stock warrants is a huge milestone for our company, because it means our lender will not have stock to sell that could drive our stock price down,” said Paul Riss, Pervasip’s CEO. “I cannot emphasize how significant the warrant cancellation is for our company, because these warrants are exercisable on a cashless basis. Our lender had beneficial ownership of approximately 159 million shares of our common stock, or 80% of our company. Now our lender has cancelled warrants to purchase 75 million shares of our common stock, leaving a balance of approximately 84 million. We hope to eliminate the remaining warrant overhang shortly so that those warrants are no longer taken into consideration in determining the value of our company.”

Mr. Riss also noted “This is an exciting month for our company. We plan to roll out several partnerships and alliances we have been working on over the past few weeks. We look forward to sharing these developments with our shareholders over the next few weeks. The cancellation of warrants is just one of the many exciting developments in our company, as we continue to see significant progress with our mobile VoIP product.”

About Pervasip

Through its wholly owned subsidiary, VoX Communications Corp., Pervasip delivers wholesale voice over IP (VoIP) telephone services for the residential and small business markets. VoX differentiates itself through a unique combination of high quality voice services, flexible back-office capabilities and automated provisioning systems. VoX recently entered the mobile VoIP services and applications arena, which is expected to approach 300 million users by 2013. It offers a feature-rich, low-cost, high-quality alternative to traditional phone services. For more information, please visit www.voxcorp.net.

Forward-looking statements: This release contains forward-looking statements that involve risks and uncertainties. Pervasip's actual results may differ materially from the results discussed in the forward-looking statements. Factors that might cause such a difference include, among others, certain risks and uncertainties over which the company may have no control. For further discussion of such risks and uncertainties, which could cause actual results to differ from those contained in the forward-looking statements, see the discussions contained in Pervasip's Annual Report on Form 10-K for the year ended November 30, 2009 and any subsequent SEC filings.

CONTACT:

Pervasip Corp.
Investor Relations:
Brian Holden, 913-226-3818

KEYWORDS:   United States  North America  New York

INDUSTRY KEYWORDS:   Technology  Consumer Electronics  Internet  Networks  Software  Audio/Video  Telecommunications  Other Technology  Mobile/Wireless  VoIP

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