Contec Innovations Inc.
TSX VENTURE : BUZ

Contec Innovations Inc.

November 30, 2006 09:15 ET

Contec Innovations Q3 2006 Financial Update

Company begins booking initial revenues

VANCOUVER, BRITISH COLUMBIA--(CCNMatthews - Nov. 30, 2006) - Contec Innovations (TSX VENTURE:BUZ), a provider of mobile Internet infrastructure software, today announced a financial update for the third quarter ended September 30, 2006.

During the third quarter of 2006, Contec continued to gain sales traction in China, the largest mobile market in the world. In the third quarter, the Company:

- Achieved the first Hornet system launch with a major Chinese mobile operator

- Began booking initial revenues

- Signed agreements for two additional Hornet deployments

"The third quarter of 2006 was the Company's first revenue generating quarter resulting from Hornet deployments in China," stated Don Lay, Contec's CEO. "Contec is an early leader in the Chinese marketplace and we will continue to benefit from the explosion in demand for value-added services where we play an integral role in connecting and managing third party value-added service providers," Lay added.

Further to the Company's September 2005 sales agreement with Beijing-based King CenturyTone Technology Co. Ltd. ("KCTone"), commercial services were launched with a major Chinese mobile operator, using Contec's Hornet platform, in the third quarter of this year. As such, Contec has recognized $26,934 of revenue associated with the KCTone contract in the third quarter. KCTone is delivering a mobile portal offering to enterprises and the public sector over the operator's 14-million subscriber network. In addition, the Company has $183,795 in deferred revenue from the KCTone contract that will be recognized in the coming quarters.

Also in the third quarter, KCTone signed an agreement for a third Hornet system to deliver a consumer-based mobile portal offering to the subscribers of the same major Chinese mobile operator in the same province as the initial system mentioned above. Services on this new, smaller Hornet system were launched subsequent to the end of the third quarter and make this Contec's second operator-connected commercial system in China.

Shanghai Mobile Communication Company, a subsidiary of China Mobile, entered into an agreement in the third quarter to deploy Contec's Hornet over their 10-million subscriber network. Contec is providing the software infrastructure to manage and deliver value-added services and will share revenues with Shanghai Mobile once commercial mobile services are launched, expected before the end of 2006.

Contec Innovation's third quarter 2006 consolidated financial statements, accompanying notes to the financial statements, and Management's Discussion and Analysis are accessible on the Company's web site at http://www.contec.ca/s/FinancialStatements.asp and on SEDAR, www.sedar.com.

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 450 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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