SOURCE: CinTel Corp.

October 17, 2005 11:34 ET

CinTel Corp. Pays Down All Remaining Amount Under Cornell Capital Partner's Standby Equity Distribution Agreement

LOUISVILLE, KY -- (MARKET WIRE) -- October 17, 2005 -- CinTel Corp. ("CinTel") (OTC BB: CNCN), a leader of Internet traffic management solutions, today announced that it has extinguished all of the shares and promissory note issued under the Standby Equity Distribution Agreement ("SEDA") with US-based investment fund Cornell Capital Partners LP ("Cornell") entered into in September of last year.

Under the terms of the SEDA, Cornell had committed to provide up to $5 million in funding to CinTel over a 24-month period, to be drawn down at CinTel's discretion through the sale of CinTel's common stock to Cornell. The purchase price of said shares purchased under the SEDA, with respect to any advance, was equal to 98% of the lowest closing bid price of the Common Stock on the listed market for the five days immediately following the notice date for the advance.

The SEDA facility may be used in whole or in part entirely at CinTel's discretion. The issuance of the shares according to the Agreement was permitted by an effective registration statement.

"We are very pleased that we have bought back the shares issuable under the SEDA with Cornell," said Sang-Don Kim, President and CEO of the Company. "I thank Cornell for the SEDA which provided a ready source of cash for general and special corporate purposes at the time of CinTel's greatest needs. Although the company still has the option to further drawdown based on the SEDA, we have extinguished 10,836,880 shares held in escrow by paying down all of the debt to Cornell. By stopping such new issuance of stock under SEDA, even if the transaction volume has decreased, we believe that the pricing pressure on the stock price has eased. Our paying down the debt is in alignment with CinTel's efforts to maximize shareholder value," he added.

About CinTel Corp.

CinTel Corp., while based in the U.S., has its main business operations in Korea that provide enterprise technology solutions to deliver faster internal and external network service. It is a company devoted to providing software and hardware solutions that provide faster Internet service. Founded in 1997, CinTel introduced Korea's first dynamic server load balancer, which has now evolved into a world-class product. CinTel's award-winning Internet Traffic Management (ITM) solutions are marketed to customers worldwide, enabling the Company's customers to improve Internet traffic management, service levels and user experience. CinTel maintains its position as a leader in Internet Traffic Management through continuous research and development efforts. CinTel is also a recognized leader in Content Delivery Network (CDN). CinTel offers a comprehensive line of advanced Internet traffic management solutions and system performance improvement solutions that help network operators meet the growing need to manage web access, secure content, improve users' experiences, and reduce server loads and bandwidth demands. For additional information, please visit: or contact J.D. Sparks, 502-657-6077 (O), 502-693-8022 (C),

Safe-Harbor Statement

This press release may contain statements (such as projections regarding future performance) that are forward-looking statements as defined in the Private Securities Litigation Reform Act of 1995. Actual results may differ materially from those projected as a result of certain risks and uncertainties, including but not limited to those detailed from time to time in the Company's filings with the Securities and Exchange Commission.

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