SOURCE: CinTel Corp.

January 28, 2008 13:27 ET

CinTel Subsidiary PSTS Expands Capacity

New Capacity Will Increase Revenue by Approximately 19 Million Dollars per Year

LOUISVILLE, KY--(Marketwire - January 28, 2008) - CinTel Corp. ("CinTel") (OTCBB: CNCN) announced that one of its key subsidiaries, Phoenix Semiconductor Telecommunication Suzhou ("PSTS") China, will commence a major production expansion project within the next six months. This will allow PSTS to expand its production capacity by approximately 20 million pieces of memory products per year. PSTS' management anticipates that this will result in an aggregate increase of approximately $19 million to the revenue stream of PSTS of which CinTel will recognize a significant portion. It will allow them to become a more rounded total semiconductor solution provider through the transfer of new high-end products and the product diversification from system LSI packaging products to include memory packaging products. The expansion supports the CinTel strategy of acquiring properties and assets that can be leveraged for growth and revenue.

This expansion continues CinTel's expansion and conversion into a competitive player in the semiconductor market. The added capacity will allow additional contracts to be brought into the facilities and will give a diversified product offering to reduce the risk inherent in an entity with fewer product lines. CinTel's CEO, Sang Don Kim, said, "We are committed to growing our company and subsidiaries into a key player in the semiconductor field. We will continue to push our subsidiaries to insure their continued growth and the strength of the overall company goals."

The planned expansion will be supported by investments of several of the shareholders of PSTS. Investors in PSTS include CinTel Corp. as the majority shareholder, STS Semiconductor Telecommunications Co Ltd, Korean Exchange Bank (KEB) and Shinhan Capital Co Ltd. With that commitment CinTel has increased its investment in the company by $4.9 million, and STS Semiconductors Telecommunications has funded the project by an investment of $4.7 million, bringing a total new investment of $9.6 million to PSTS to fund its expansion project. CinTel's management feels that this investment will yield a significant return on its investment.

About Phoenix Semiconductor Telecommunication Suzhou (PSTS) (

Phoenix Semiconductor and Telecom became a majority-owned subsidiary of CinTel Corp. in October 2006. It was founded by STS Semiconductor and Telecommunication in China in 2004 by acquiring certain parts of the packaging production lines from Samsung Electronics Corporation's China plant (SESS). It began mass production in 2005, and its main customer is Samsung Electronics Corporation, the largest semiconductor manufacturer in the world. PSTS's main products are semiconductor packaging, NAND flash memory and LCD assembly.

About CinTel Corp. (

Founded in 1997, CinTel has created a conglomeration of technology products to include NAND flash memory packaging, LCD assembly, semiconductor packaging and testing specialists, as well as a total solution provider for memory applications for home appliances, semiconductor and TFT-LCD application products.

Safe Harbor Statement

This press release may contain statements (such as projections regarding future performance) that are forward-looking statements as defined in the Private Securities Litigation Reform Act of 1995. Actual results may differ materially from those projected as a result of certain risks and uncertainties, including but not limited to those detailed from time to time in the Company's filings with the Securities and Exchange Commission.

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