Contec Innovations Inc.

Contec Innovations Inc.

March 30, 2006 09:15 ET

Contec Innovations Inc.: Hornet Portal Enhances Mobile Experience

VANCOUVER, BRITISH COLUMBIA--(CCNMatthews - March 30, 2006) - Contec Innovations Inc. (TSX VENTURE:BUZ) -

Company Opens Beijing Office; Appoints Director, Business Development; Options Granted

Contec Innovations, a provider of mobile Internet infrastructure software, today announced that Beijing-based King CenturyTone Technology Co. Ltd. ("KCTone"), will deploy Contec's Hornet Portal™, a new software framework for creating content and services for the mobile Internet. KCTone signed a C$400K Hornet™ Sales Agreement in September 2005 and is working towards a launch of Hornet, Contec's powerful and flexible mobile service delivery platform, to host and deliver an operator-branded portal offering to a Chinese mobile network operator's subscriber base.

Hornet Portal is a flexible framework for quickly and easily providing consumer and enterprise services such as: addressbook, corporate profile, ToDo list, blogs, as well as personal profiles, diary, shortcuts to favorite content sources, news, weather, sports and stock information - the possibilities are virtually limitless. Portal is ideal for mobile operators or service providers to deliver an immediate and feature rich product offering to their subscriber base. Hornet's development capabilities provide for easy and flexible application plug-ins to add to the standard offerings.

Additionally, with Hornet Portal, information services that were previously only accessible through a WAP browser are available to subscribers with legacy handsets. Subscribers can easily access a wealth of information through simple SMS text messaging and short-codes. Developers can create new Portal modules easily and quickly, limited only by their imagination. The Hornet service provider can customize modules or develop their own.

"Think of Portal as a personal or corporate website designed for the mobile device," commented Roland Schmidt, CTO. "Like other websites, the mobile website stimulates large volumes of traffic - but in this case, there is revenue for the mobile service provider with every message sent. Portal is specifically designed to stimulate messaging and WAP traffic," Schmidt added.

Contec's agreement with KCTone provides KCTone with certain performance-based options to contract additional Hornet systems from Contec for an expanding rollout with a major Chinese mobile operator's provincial operations.

Contec Establishes a Wholly-Owned Subsidiary, Opens Beijing Office and Increases Staffing Levels in China to Support Growing Regional Activity

Contec has completed the formation of a wholly-owned Chinese subsidiary and has opened an office in Beijing. Contec's new office is located in Haidian District, the second-largest precinct in urban Beijing and is well known for famous universities and hi-tech companies which has earned it the label of "Silicon Valley of China".

Contec today announced the appointment of Denny Ni as Director, Business Development for Contec China. Ni has been active in sales and marketing in the China telecom sector for over 15 years. Ni has worked with North American technology companies for many years and past roles have included CEO of NCL Technologies which was the sole distributor of Sierra Wireless CDMA products in China. Ni has a Bachelors degree in Wireless Communications Engineering from Nanjing University of Posts & Telecommunications and an MBA from the University of Birmingham, United Kingdom.

Contec continues to build its China team and expects to have approximately 10 employees on the ground in China within the next 60 days.

"Establishing operations in Beijing marks another milestone in our journey to becoming a major player in the mobile software infrastructure space in China," said Don Lay, CEO. "China's emergence as the world's largest wireless market with over 400 million subscribers represents a big opportunity for Contec."

Options Granted

Contec has granted incentive stock options to purchase up to 366,000 common shares of the Company at an exercise price of C$0.205 for up to five years. These options expire on March 16, 2011 and are subject to a 4-month hold-period expiring July 16, 2006. Brian Buckley, who handles investor relations for Contec Innovations, received incentive stock options to purchase 39,900 shares of the Company. The grant of these stock options is subject to TSX Venture Exchange approval.


Don Lay, CEO

About Contec Innovations

Contec accelerates the growth of the mobile Internet by enabling mobile service providers to capitalize on new data services. Contec's core product, the Hornet™, is an open, carrier-class mobile service delivery platform capable of hosting multiple mobile applications in a secure, scalable environment allowing service providers to generate new revenues by efficiently deploying reliable and compelling data applications. Founded in 1999 and headquartered in Vancouver, Canada, Contec is listed on the TSX Venture Exchange under the symbol "BUZ". For more information, visit

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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