Neotel International Inc.
TSX VENTURE : NIT

Neotel International Inc.

May 19, 2006 14:30 ET

Neotel to Settle Debt with Shares

MARKHAM, ONTARIO--(CCNMatthews - May 19, 2006) - Neotel International Inc. ("Neotel")(TSX VENTURE:NIT) and its President and CEO, Mr. Howard Phee, announces that it has reached an agreement, subject to regulatory approval, with certain of its arm's length and one non-arm's length supplier of services and creditors to settle debt, incurred during years 2004 and 2005, totaling $238,640 by the issuance of 1,193,200 common shares of stock of the Company at a deemed value of $0.20 per share. Included in the shares to be issued is the previously announced agreement related to the Company's purchase of SecureIT. $100,000 of the long term debt related to the acquisition has been converted to 500,000 common shares issued to the founders of SecureIT.

The Company is presently completing the application for filing with TSX Venture Exchange for approval to complete this transaction. This is a further step in the re-structuring process underway in the Company for the past year.

ABOUT NEOTEL INTERNATIONAL INC.

Neotel International Inc. is a provider of identity, security and trust solutions as well as professional services specializing in industry based biometric identification solutions.

Additional information about Neotel is available at www.neotel.ca

16,461,534 shares outstanding

The TSX Venture Exchange does not accept responsibility for the adequacy or accuracy of this release.

Contact Information

  • Neotel International Inc.
    Howard Phee
    President and CEO
    (905) 948-9229 ext: 22
    www.neotel.ca