Contec Innovations Inc.
TSX VENTURE : BUZ

Contec Innovations Inc.

November 02, 2006 09:15 ET

Contec Announces Warrant Incentive Program

VANCOUVER, BRITISH COLUMBIA--(CCNMatthews - Nov. 2, 2006) - Contec Innovations (TSX VENTURE:BUZ), a provider of mobile infrastructure software, today announced an incentive program to encourage the early exercise of 3,450,000 C$0.25 warrants (the "Warrants") that expire between November 22, 2006 and January 26, 2007.

Exercising the warrants early will provide the capital to execute Contec's current business plan. The proceeds of the warrant exercise will fund business development and customer support in the China mobile marketplace and continued research and development of Hornet, Contec's flagship product, a mobile service delivery platform now running with China Mobile, the world's largest operator.

The Company proposes to amend the terms of all of the existing C$0.25 warrants that expire between November 22, 2006 and January 26, 2007 so that upon payment of the applicable exercise price of C$0.25, the holder will receive one unit (the "Units") instead of one common share. The Units will consist of a common share and an additional warrant (the "New Warrant"). Each New Warrant will allow the holder to acquire one additional common share at a price of C$0.30 per share until May 22, 2008.

The total proceeds to Contec if all the Warrants are exercised is C$862,500 before costs and commissions (1,254,000 warrants expiring November 22, 2006: C$313,500, 1,246,000 warrants expiring December 16, 2006: C$311,500 and 950,000 warrants expiring January 26, 2007: C$237,500). The warrant incentive program is subject to approval from the TSX Venture Exchange and the Units issued upon the exercise of the warrants are subject to a 4-month hold period.

The Company may pay a 4% broker commission to assist it with this process, payable either in cash or broker warrants. Each broker warrant would entitle the holder to a Unit consisting of one common share of the Company and one further warrant, where each such warrant entitles the holder to purchase one additional common share of the Company at the price of C$0.30 until May 22, 2008. Each broker Unit is subject to a 4-month hold period.

Warrant holders have until 4:00 PM PST on November 22, 2006 to participate in the warrant incentive program. If a warrant holder does not exercise their Warrants by this time, the warrants will continue to be exercisable for common shares on the same terms that previously existed.

ON BEHALF OF THE BOARD OF DIRECTORS OF CONTEC INNOVATIONS

Don Lay, CEO

About Contec Innovations

Contec Innovations (TSX VENTURE:BUZ) provides mobile data infrastructure software that accelerates the development and rollout of new mobile data services. Hornet™, Contec's core product, delivers a flexible and scalable application development, testing and hosting solution that quickly provisions operator branded services as well as manages third party, value-added service providers. Contec's business focus is China, the world's largest and fastest growing wireless marketplace with over 425 million mobile subscribers. Contec, headquartered in Vancouver, Canada has sales and support offices in China. For more information, visit www.contec.ca.

The statement made in this press release may contain certain forward-looking statements that involve a number of risks and uncertainties. Actual events or results may differ from the Company's expectations. Hornet™ is a trademark of Contec Innovations Inc.

The TSX Venture Exchange has not reviewed and does not accept responsibility for the adequacy of the content of the information contained herein.

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