SOURCE: Nettel Holdings

November 20, 2007 11:01 ET

Nettel Holdings Announces 3rd Quarter 2007 Financial Results and Forward Guidance

9 Month YOY Up 433% to Over $16 Mil

VANCOUVER, WA--(Marketwire - November 20, 2007) - Nettel Holdings, Inc. (OTCBB: NTTL) today reported its financial results for the three-month period ended September 30, 2007.

MANAGEMENT'S DISCUSSION AND ANALYSIS

The Company's net revenue for the three-month period ended September 30, 2007 was $5,314,533 compared to $2,607,133 for the same period ended September 30, 2006. Gross profit for 3rd quarter 2007 was $235,561 compared to $121,654 for the same period ended September 30, 2006. Net loss for the quarter was $881,748, which primarily was a non-cash charge for the market value of the Company's common stock issued to engineers and consultants for their services. Excluding this non-cash charge, the company was profitable for the quarter. The large investment Nettel has made to implement their new ideas has laid a strong foundation for the development of the Company's major divisions, AVOP, Tougi, Talking Technologies.

Significant strategic milestones achieved so far:

Tougi division -- Tougi Completes Revamping of the New Online Retail and Drop Shipping Trading Platform. The new system will accommodate the regular retail consumer, while the wholesale and drop shipping program will be assisting stores and online retailers add to their product line without the need to stock or ship the products. Our manufacturing base has been growing rapidly to include over 17,000 sellers. In addition, over 200,000 items will be available to ship out locally in the U.S., to save on shipping time and cost. Plus, we have also created a unique program for companies located in the U.S. or Canada, with offices and branches located over seas. With our relationships established with manufactures all over the world, U.S.-based companies who want to buy products for their overseas offices will now be able to place the order on Tougi, pay for it, and have the products delivered locally to their office stock or factory overseas.

AVOP Exchange division -- AVOP exchange continued to perform well. Progress from telecom sales over the pass 2 months has been very positive. Our wholesale unit reports significant Increases in minutes sales from several major wholesale providers.

AVOP Gateway division -- All of the gateways for the initial phase have been installed and in operation in three countries. The overall results have been positive. Over the past two months, AVOP has been sending a high volume of live calls daily to each of seven of the 13 gateways installed, averaging now over 20,000 minutes per day per gateway. Buyers are very happy with the significant increase in call duration, call completion ratio and voice quality. This is very important because attaining a good quality rating gives us the opportunity to ask for a much higher rate, which gives us a higher profit margin.

While our initial overall goal was to have 2,000 ports in operation by the end of November 2007, due to technical circumstances beyond our control this will take longer then anticipated.

Taking Technologies division -- Talking Technologies Completed several key unique Products that revolutionize the way we communicate and very soon, will be a MAJOR REVENUE GENERATOR for the company. We are currently in discussions with several large companies and organizations that will be able to distribute and market the products we have developed.

For the first time in a public forum, our team was able to demonstrate some of the unique capabilities of the Virtual Interpreter and other products and services. This is a one-of-a-kind, speech to speech, bi-directional translator which has evolved into many unique products unavailable from any other source.

Using any telephone, Virtual Interpreter allows users to directly communicate with each other in real time even though they do not share a common language. The system allows users to speak another language as if they were born into it. Its global broadcast feature allows you to address multiple parties at once in different languages. To view all of the products and services provided by Talking Technologies, please visit www.talkingtechnologies.com.

We continue to see the remainder of 2007 as a year of strong financial performance based on the current contracts and orders in the pipeline. Our company is well positioned for long-term growth and profitability, and we remain confident about the future prospects. We believe that the value of our technology will translate into both domestic and international sales growth for the next several years. We have created uniquely helpful products and services that have tremendous value in today's marketplace.

Contact Information

  • Contact:
    Investor Relations
    503-336-5098