SOURCE: INNOTELCO, Inc.

January 25, 2006 12:35 ET

INNOTELCO, Inc. Announces Exclusive Supplier Agreement

TORONTO -- (MARKET WIRE) -- January 25, 2006 -- INNOTELCO, Inc. (OTC: ILCO), a marketer and distributor of telecom hardware and network solutions, announces signing of an Exclusive Supplier Agreement with Fenghua Yuguang Electron Wire & Cable Manufacturing Co. Ltd.

Innotelco and Fenghua Yuguang have signed a final agreement for Fenghua Yuguang to be the exclusive supplier of cable and cable products for Innotelco in the Southeastern Region of Europe. We believe that this agreement gives the company a better edge in developing business in the Balkan Region above our expectations. Innotelco has been able to negotiate suitable terms to meet the needs of the company and its clients and increase the profitability of our already signed contracts.

"Due to the signing of this agreement, I strongly believe that Fenghua Yuguang is the manufacturing company who can follow us and be part of our business plan and tender process for the future," said Ross Sehovic, CEO.

"The Southeastern European Region imports over half a billion euros of telecommunication equipment annually, and Innotelco has been successful in obtaining signed contracts. We at Fenghua Yuguang look forward to supplying them on these deals and to continue with our very beneficial relationship by working with Innotelco in any capacity to fulfill these contracts. We believe that Innotelco has received from us very advantageous terms and this will contribute to a durable business relationship," (Blank Zhang, Fenghua Yuguang).

About Fenghua Yuguang Electron Wire & Cable Manufacturing Co. Ltd.

The company manufactures cable products for the European, Middle East, and many other markets around the world. They have the technical ability to test products to quality standards manufactured in their factory.

The Fenghua Yuguang Electron Wire & Cable Manufacturing Co. Ltd. is located in Ningbo in the middle of China's coastline and in the south of Yangtze Delta. Ningbo is divided from Shanghai by the Hangzhou Bay and has grown into one of the four International deepwater harbours in China.

"INNOTELCO - Building Bridges for Communication"

About Innotelco, Inc.

Innotelco is a telecom hardware supplier, specializing in servicing emerging markets looking to expand their telecommunications networks. Innotelco products range from indoor and outdoor coaxial cables and accessories to fibre optics and switching equipment.

Safe Harbor Statement

This press release contains forward-looking statements as defined in the Securities Litigation Improvements Act of 1996. The words "believe,'' "expect,'' "estimate,'' "project'' and similar expressions define forward-looking statements, which speak only as of the date the statement was made. Innotelco, Inc. undertakes no obligation to publicly update or revise any forward-looking statements, whether because of new information, future events or otherwise. Forward-looking statements are currently subject to risks and uncertainties, some of which cannot be predicted or quantified. Future events and actual results could differ materially from those set forth in, contemplated in, or underlying the forward-looking statements. The risks and uncertainties to which forward-looking statements are subject include, but are not limited to, the Company's ability to meet its projected growth, the effects of government regulation, competition and other material risks.

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