SOURCE: aeroTelesis, Inc.

March 30, 2006 08:55 ET

aeroTelesis's Exclusive Supplier of USM™ Technology Completes the Transition From Computer Simulations to Hardware Functionality

LOS ANGELES, CA -- (MARKET WIRE) -- March 30, 2006 -- aeroTelesis™, Inc. (OTC BB: AOTL) and Photron Technologies Ltd., who exclusively provides their USM™ technology to aeroTelesis, announced that their new modulation technology USM™ is now in the final transition to hardware functionality using FPGA (Field Programmable Gate Array) chips. An FPGA is a specially made digital semiconductor often used for prototyping and is being used to complete the migration from USM™ computer simulations to commercial hardware demonstrations. The breakthrough rates provided by Photron's market changing technology will allow wireless data transmission rates of 5Mbs through a narrow 50 KHz channel. Current wireless technologies require channel bandwidths that are 25x larger. We believe the increased spectral efficiency of USM will dramatically increase the utilization of costly bandwidth.

Dale Kluesing, Chief Technology Officer, Photron, stated, "The advent of our hardware prototype demonstration for our licensed partners and other satellite companies is a very important milestone. After two years of extensive R&D efforts, it is gratifying to know that we will succeed in providing a telecommunications technology that far surpasses any current base band technology by a factor of twenty-five."

Joseph Gutierrez, President of aeroTelesis, said, "This is a major step for USM™ to be shown in a physical environment to the Company's current and future satellite partners. The completion of the hardware demonstration will potentially show USM™ to be the first communications technology to achieve data transmission rates of 100 bps/Hz."

The final implementation phase is expected to last approximately sixty days with actual demonstrations starting within thirty days after completion.

About aeroTelesis, Inc.

aeroTelesis is an emerging technology-driven service provider that will enable satellite companies to significantly increase their current bandwidth utilization. aeroTelesis' technology partner, Photron Technologies Ltd. (Photron), is the developer of a proprietary technology platform called Ultra Spectral Modulation (USM™). USM™ is a proprietary modulation technique that significantly increases spectral efficiency in satellite-based applications. aeroTelesis has the exclusive license from Photron to distribute USM™-related products and services. Upon the completion of the development of USM, aeroTelesis intends to offer USM™-related products and services to major satellite operators on a global basis. aeroTelesis is a Delaware corporation and is headquartered in Los Angeles, CA.

Forward-Looking Statements

This press release contains forward-looking statements made in reliance upon the safe harbor provisions of the Private Securities Litigation Reform Act of 1995, as amended. Forward-looking statements include, but are not limited to, the Company's growth strategy, future milestones and projected operations. Forward-looking statements are inherently subject to uncertainties and other factors, which could cause actual results to differ materially from the forward-looking statements. These factors and uncertainties include: the Company's reliance on Photron's ability to develop and commercialize its USM™ technology; expand its operations to meet anticipated demand; the ability of the Company's technology to achieve anticipated benefits for its customers; ability to secure operating licenses in host countries; anticipated growth of the Company's target markets, unanticipated delays in manufacturing or shipments to customers; and its ability to achieve anticipated sales and profits. The Company refers interested parties to its most recent Annual Report on form 10KSB and its other SEC filings for a description of additional uncertainties and risk factors that may affect forward-looking statements. Forward-looking statements are based on information presently available to senior management and the Company has not assumed any duty to update its forward-looking statements.

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