Alternet Systems Inc.
OTC Bulletin Board : ALYI

Alternet Systems Inc.

March 18, 2008 06:30 ET

Alternet Systems Inc.: Corporate Update; Planning for Growth, Performing for the Future

VANCOUVER, BRITISH COLUMBIA--(Marketwire - March 18, 2008) - Alternet Systems Inc. - New Symbol (OTCBB:ALYI) -

2008 will be a year of solid execution and growth in almost all aspects of Alternet's business. Given our realigned product and service offering, financial performance and geographic balance, we expect very good traction in key growth opportunities. These include our core telecommunications offering, our education and healthcare content distribution applications, as well as our new offerings in the service provider market. In addition, our transactional applications for the financial, telecommunications, utilities and urban mass transportation sectors have uniquely positioned Alternet Systems on the path to success.

In fiscal 2007, we invested heavily in research and development in order to realign our current technologies and offerings, focusing on innovation, flexibility and profitability in new emerging business sectors. The technology partnerships that we have nurtured-many of them with large Asian partners-will result in numerous new products and service introductions during this coming year. We truly believe these upcoming products and services are unrivalled within our industry, and offer outstanding value to our customers. Alternet management believes the key to the Company's success lies in our commitment to offering innovative solutions that provide our customers and partners with tangible price and performance advantages.

Our role as a trusted business and technology partner is becoming increasingly important, as our customers focus on future investments that drive profitability, productivity, return on investment, cost savings, as well as having an immense impact in their societies.

Alternet, Tekvoice and its subsidiaries key stakeholders-customers, partners, employees, and shareholders-remain at the center of our strategy. Fiscal 2008 will reflect our passionate focus on the needs of our key stakeholders during a time of industry recovery and growth.

GROWTH AND INNOVATION

We expect Alternet's revenues, profits and return on investments to be balanced across all three of the growth areas we have outlined in our strategic plan. These three areas are our core retail telecommunications offerings currently provided by TekVoice Communications; the education and health care content distribution market; and our advanced transactional platforms for the financial, telecommunications, utilities and mass transportation markets. In addition to the anticipated growth in these sectors, we aim to strengthen our ability to continuously innovate and lead the way in many other markets through our product and service offerings, which we strongly believe will be a major driver of our future success. We anticipate Alternet gaining new customers and partners in almost all of its product areas, and in each of the customer markets we participate in - telecommunications, financial, utilities and mass transportation, both in the private and government sectors.

Revenues from TekVoice Communications retail telecommunications offerings will increase as a result of a commitment to invest in marketing and promotion, as well as acquiring certain key retail distribution organizations in the United States. Our expected strong revenue growth will be driven by use of our transactional platform solutions to increase our penetration of the retail market, and by enabling the retailer and end user mobile phones to be used for micro payment and mobile based purchases. These solutions will provide significant performance enhancements to the retail distribution network, often with price reductions to the end user, ensuring the balance between customer success, Alternet's profitability, and our leadership in the marketplace.

A significant growth opportunity continues to be in the education and health care content distribution market, where Alternet has made significant investments over the past several years. We expect to expand our sales and marketing efforts in all geographic regions, by offering a suite of technological solutions that will help our customers make efficient use of their limited budgets. We believe that by helping build effective partnerships, between the public and private sectors, we can deploy complete frameworks for the education and health care networks of an entire country, always hand-in-hand with the local policies and objectives. Our offerings include financing for infrastructure improvements (building of schools, providing solar and wind generated power and sanitary facilities), and the acceleration of the implementation of a digital content delivery platform in our target countries. With the collaboration of our major partners, we are now in a wonderful position to win these national projects, and are excited by the opportunities that will be coming our way in 2008, as the social capital spending environment improves throughout Latin America.

Continued investment in our transactional platform offerings is a major objective in our future plans, as this sector is expected to yield significant revenue growth and market acceptance in the coming years. The four advanced offerings we identified last year include: mobile transactions (which include micro payments, mobile prepaid top-up, domestic and international money remittance, micro finance and micro payments); the prepayment of public utilities including water, power and gas; the management and fare collection systems of urban mass transportation networks, both city and nationwide; and a mobile based point-of-sale system and network that will support the described services.

We have reached several milestones in these areas, such as establishing the appropriate partnerships with different vendors, and discussions with multilateral financing institutions and local banks to finance the deployment of these projects in Latin America. A recent presentation to high-ranking officials of a Latin American country was an overwhelming success, and validated both our marketing approach and our range of products and services. As a result, we are currently hiring key operational management and establishing an operating budget for the period 2008-2009.

While we believe each of these four markets has the potential to grow into a multi million-dollar business, we will continue to look for opportunities to expand into additional areas over the next several years.

Innovation is a major component of Alternet's success and will be integral to our growth over the next 20 years. Our ability to innovate internally and, at the same time, form strategic alliances and successfully integrate acquisitions will be a competitive advantage that will accelerate our growth in new and existing markets.

We believe it may be challenging, to achieve the type of growth that Alternet expects, without taking good business risks. Taking good business risks is an integral part of our growth strategy, and you should expect Alternet to continue to be aggressive in our business strategy and conservative in our financial reporting.

CORPORATE CITIZENSHIP

Our business strategy incorporates our dedication to corporate citizenship. Alternet's responsible business practices span the areas of product and service stewardship, human resources, ethics, social impact management, knowledge transformation, governance, and financial disclosure to create sustainability for competitive advantage.

We are actively building partnerships with non-profit organizations that believe the strengthening of underdeveloped economies is inextricably linked to its access to information, education and higher health care standards. We wholeheartedly seek to build relationships with organizations that promote the expansion of Internet-based content access, aimed at minimizing the digital divide between our societies.

In the past years, Alternet has worked to improve local communities through their involvement with Regional Civic and Government Councils. Alternet has supported the build out of broadband wireless networks linking government offices and other public institutions, which in turn create programs encouraging access to digitally available content in the areas of art, science, math, engineering, and technology. Our employees are committed to change the way the world works, lives, plays, and learns.

GOING FORWARD

Going into fiscal 2008, we will continue to develop within our three major targeted growth areas, with a particular focus on market results, profit contribution, catching market transitions, and listening to our customers.

We believe that technological innovation can be a catalyst for increases in everyday productivity and improving standard of living, and that the best is yet to come.

We would like to take this opportunity to thank our customers, partners, employees, and shareholders for your continued confidence and support as we embark on a new and exciting phase in the development of our company.

Henryk Dabrowski, Chairman of the Board and President

About Alternet Systems:

Alternet Systems Inc. (OTCBB:ALYI) has three main product areas: retail telecommunications services currently provided by TekVoice Communications; the education and health-care content distribution sytems; and our advanced electronic transaction platforms for the financial, telecommunications, utilities and mass transportation markets. Alternet Systems Inc. is a U.S. corporation with offices in Miami, Florida and Vancouver, British Columbia, Canada.

For further information about this news release or the Company, contact: Patrick Fitzsimmons (866-608-2540) or visit Alternet's corporate website at www.alternetsystems.com.

On Behalf of the Board of Directors

ALTERNET SYSTEMS INC.

Patrick Fitzsimmons, Director

Certain statements in this news release may contain forward-looking information within the meaning of Rule 175 under the Securities Act of 1933 and Rule 3b-6 under the Securities Exchange Act of 1934, and are subject to the safe harbor created by those rules. All statements, other than statements of fact, included in this release, including, without limitation, statements regarding potential future plans and objectives of the Company, are forward-looking statements that involve risks and uncertainties. There can be no assurance that such statements will prove to be accurate and actual results and future events could differ materially from those anticipated in such statements.

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