SOURCE: Alternet Systems, Inc.

November 18, 2008 09:00 ET

Alternet Systems, Inc. Reaches Agreement in Support of Estimated $140 Million in Fare Collection With the Association of Urban Buses of the City of Guatemala

Expected Fare Increase Could Bring Fare Collection Revenue to $280 Million by 2010

MIAMI, FL--(Marketwire - November 18, 2008) - Alternet Systems, Inc. (OTCBB: ALYI) today announced that Transtech de Guatemala, S.A., a regional subsidiary of the Company's joint venture with Tianjin IC Card Public Network Systems Co. LTD (TCPS), has entered into a letter of intent (LOI) with the Association of Urban Buses of the City of Guatemala. Under this agreement, the parties are developing a 10 year, renewable contract where Transtech de Guatemala will provide the Association urban mass transportation technology and fleet replacement financing facilities. The proposed new mass transportation systems and fleet replacement financing would benefit a population of more than 3 million within the City of Guatemala. The expected fare volume in 2009 is approximately $140 million. However, a fare increase is expected that could increase fare collection revenue to $280 million by 2010. Alternet used their Guatemalan subsidiary to forge their relationship with the Association of Urban Buses of the City of Guatemala.

Trade Mission to China to Review Existing Mass Transportation Technology Operations in Action

Members of the Association of Urban Buses recently traveled to China with Transtech, the Company's joint venture with Tianjin IC Card Public Network Systems Co. LTD (TCPS). During the trip, members of the Association reviewed TCPS' mass transportation technology and operations in production to see how these systems would benefit their own city's mass transportation system in Guatemala.

TCPS is a large company based just outside of Beijing in Tianjin, China, providing urban mass transportation fare collection with contactless card and terminal solutions. TCPS systems have been developed and implemented in 76 cities and process daily prepaid fares for more than 300 million people.

Technology and Fleet Financing for the City of Guatemala

Under the terms of the LOI, the Association of Urban Buses will consider similar technology implementations to the ones they reviewed in China for the City of Guatemala, which include prepaid fare collection system, fleet management systems, control systems and user security systems. In addition to the proposed technology innovations for the city's mass transportation system, Transtech has proposed facilitating financing of new buses for the City of Guatemala's fleet replacement program through their partnership with the largest bank in Guatemala, Banrural. The proposed lending facility is estimated at $350 million and would be used to acquire 3,400 new buses for the city.

Strategic Partnership with Banrural, the Largest Bank in Guatemala

Alternet recently announced that their joint venture with Tianjin IC Card Public Network Systems Co. LTD (TCPS), Transtech Sino America, Inc., finalized a partnership with Banrural (www.banrural.com), the largest bank in Guatemala with the largest number of bank branches. In the partnership, Banrural will serve as Transtech's financial partner for E-transaction, E-ticketing and mobile payment solution projects in Guatemala and the surrounding region, with an initial focus on mass transportation e-ticketing solutions. Transtech will benefit from a variety of financial services Banrural provides, including trust managements, cash collection and sales channels through Banrural's extensive network of ATM's. Initially, Banrural's ATM network will be used as a recharge point of sale system for prepaid bus fare collection. Additionally, the Banrural partnership may provide key financing to Transtech's fleet replacement initiative in Latin America, providing high efficiency and low emission liquid petroleum gas (LPG) buses to municipalities with aging or inefficient bus fleets. The partnership has the potential for additional expansion to include utilities prepayment and municipal services.

ALYI Corporate Fact Sheet

A Fact Sheet highlighting the Company's recent acquisition of TekVoice Communications, E-Transaction technology, mass transportation management services and strategic partnerships is now available.

If you are interested in receiving a copy of the Fact Sheet call 214-556-5927 or send an e-mail to Red River Advisors at alternet@redriveradvisors.com.

About Alternet Systems (www.alternetsystems.com)

Alternet Systems Inc. (OTCBB: ALYI) provides: telecommunications services; education and health-care application software and systems; and electronic transaction platforms for the mass transportation and utility markets. Alternet Systems Inc. is a U.S. corporation headquartered in Miami, Florida.

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.

Contact Information