Contec Innovations Inc.
TSX VENTURE : BUZ

Contec Innovations Inc.

December 06, 2006 09:15 ET

Contec Raises C$545,000 Through Warrant Incentive Program

VANCOUVER, BRITISH COLUMBIA--(CCNMatthews - Dec. 6, 2006) - Contec Innovations Inc. (TSX VENTURE:BUZ), a provider of mobile infrastructure software, today announced that further to the news release of November 2, 2006, the Company has closed its warrant incentive program and has received C$545,601, before costs and commissions, from the early exercise of 2,182,407 C$0.25 warrants (the "Warrants") that expire between November 22, 2006 and January 26, 2007. The number of warrants that were amended and exercised early represents approximately 63% of the total number of warrants that could have been exercised under the Warrant Incentive Program.

Pursuant to the terms of the amendment to the existing C$0.25 warrants that expire between November 22, 2006 and January 26, 2007, and upon payment of the applicable exercise price of C$0.25, the holder received one unit (a "Unit") consisting of a common share and an additional warrant (the "New Warrant"). Each New Warrant allows the holder to acquire one additional common share at a price of C$0.30 per share until May 22, 2008. The Units issued upon the exercise of the warrants are subject to a 4-month hold period expiring March 24, 2007. Commissions totaling C$11,651 were paid on a portion of the funds raised.

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 mobile operator.

ON BEHALF OF THE BOARD OF DIRECTORS OF CONTEC INNOVATIONS

Don Lay, CEO

About Contec Innovations Inc.

Contec Innovations Inc. (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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