Alternet Systems, Inc. Announces $25 Million Contract With the Municipality of the City of Guatemala to Provide Mass Transportation Technology Services

MIAMI, FL--(Marketwire - December 2, 2008) - Alternet Systems, Inc. (OTCBB: ALYI) today announced that Transtech de Guatemala, S.A., a regional subsidiary of the Company's joint venture with Tianjin IC Card Public Network Systems Co. LTD (TCPS), has signed a $25 million contract with the Municipality of the City of Guatemala for the operation and management of a bus prepaid fare collection system, user information systems, fleet management systems and security systems for the municipality's transportation company Transmetro, Inc. The population that will be served by these systems is estimated at more than 2.5 million passengers per day and more than 630 million trips per year. The initial duration of the contract is for 10 years and it is renewable for another 10 years, exclusively.

The services will be deployed in partnership with the largest bank in Guatemala, Banrural (http://biz.yahoo.com/iw/081111/0451371.html), the Company's joint venture with Tianjin IC Card Public Network Systems Co. LTD (TCPS), Transtech Sino America, Inc. (http://biz.yahoo.com/iw/080812/0424102.html), and a group of private investors from Guatemala, creating an integrated and seamless service across all buses in the City of Guatemala. Alternet will also leverage a partnership with Pagos Digitales, S. A., to use their already established distribution and collection networks throughout the City of Guatemala.

Strategic Partnership with Banrural, the Largest Bank in Guatemala

Alternet recently announced that their joint venture with Tianjin IC Card Public Network Systems Co. LTD (TCPS), Transtech Sino America, Inc. finalized a partnership with Banrural (www.banrural.com), the largest bank in Guatemala with the largest number of bank branches. In the partnership, Banrural will serve as Transtech's financial partner for E-transaction, E-ticketing and mobile payment solution projects in Guatemala and the surrounding region, with an initial focus on mass transportation e-ticketing solutions. Transtech will benefit from a variety of financial services Banrural provides, including trust managements, cash collection and sales channels through Banrural's extensive network of ATM's. Initially, Banrural's ATM network will be used as a recharge point of sale system for prepaid bus fare collection. Additionally, the Banrural partnership may provide key financing to Transtech's fleet replacement initiative in Latin America, providing high efficiency and low emission liquid petroleum gas (LPG) buses to municipalities with aging or inefficient bus fleets. The partnership has the potential for additional expansion to include utilities prepayment and municipal services.

Transtech: Alternet's Strategic Partnership with TCPS in Latin America

Through their joint venture Transtech, Alternet Systems is TCPS' strategic partner in Latin America. TCPS chose Alternet Systems for their experience in Latin America and for their proprietary wireless e-transaction capabilities, which are complementary to TCPS' contactless card and financial terminals. TCPS is a large, established company based just outside of Beijing in Tianjin, China, providing urban mass transportation fare collection with proven contactless card and terminal solutions that have been developed and implemented in the most populated country in the world. TCPS is currently the market leader in China, with more than 57% of the market served. Currently, TCPS' systems are used in 76 cities and process prepaid fares for more than 300 million people. TCPS has issued more than 100 million contactless cards, has proprietary technology in the fare collection industry and has set up a post graduate Research and Development facility in partnership with Hebei Industry University.

ALYI Corporate Fact Sheet

A Fact Sheet highlighting the Company's recent acquisition of TekVoice Communications, E-Transaction technology, mass transportation management services and strategic partnerships is now available.

If you are interested in receiving a copy of the Fact Sheet call 214-556-5927 or send an e-mail to Red River Advisors at alternet@redriveradvisors.com.

About Alternet Systems (www.alternetsystems.com)

Alternet Systems, Inc. (OTCBB: ALYI) provides: telecommunications services; education and health-care application software and systems; and electronic transaction platforms for the mass transportation and utility markets. Alternet Systems, Inc. is a U.S. corporation headquartered in Miami, Florida.

Certain statements in this news release may contain forward-looking information within the meaning of Rule 175 under the Securities Act of 1933 and Rule 3b-6 under the Securities Exchange Act of 1934, and are subject to the safe harbor created by those rules. All statements, other than statements of fact, included in this release, including, without limitation, statements regarding potential future plans and objectives of the Company, are forward-looking statements that involve risks and uncertainties. There can be no assurance that such statements will prove to be accurate and actual results and future events could differ materially from those anticipated in such statements.

Contact Information: Contact: Red River Advisors 214-556-5927 alternet@redriveradvisors.com