Hey thanx alot. I will look into using that tone generator I.C that you mentioned. However, I did use 2 555 timers in the astable configuration to generate the individual tones and then used a LM381 chip configured as a mixer to mix both tones. After which I coupled the output of the mixer through a capacitor and sent it to a speaker.
The dial tone generated sounds like a dial tone, however it has a higher pitch.
I'm not really satisfied 100% with the results, so I will try your suggestion if I can source that chip.
Thanx alot.