Contec Innovations Inc.
TSX VENTURE : BUZ

Contec Innovations Inc.

September 28, 2005 09:15 ET

Contec Signs Hornet™ Trial Agreement; Also Expands Agent Network in China

VANCOUVER, BRITISH COLUMBIA--(CCNMatthews - Sept. 28, 2005) - Contec Innovations (TSX VENTURE:BUZ), a provider of mobile Internet infrastructure software, today announced it is trialing Hornet with a strategic partner of a major Chinese mobile operator. This trial is in addition, and unrelated to, the recently announced C$400,000 agreement with Beijing-based KCTone.

The trial will test Hornet's role in providing application hosting support for third party mobile data services, as well as the ease of integration with the operator's existing services, network infrastructure and business systems. Hornet provides mobile operators an open service delivery platform capable of hosting multiple mobile applications and brands in a secure, scalable environment.

"There are now thousands of third party value-added mobile service providers attached to their networks, so the Chinese mobile operators are looking to manage and control this important revenue stream," commented Don Lay, CEO. "The Hornet acts as a master service provider platform - bringing in new revenues while reducing the overhead in the managing of all the relationships."

Contec anticipates that upon successful completion of the trial, the strategic partner will engage in commercial discussions, although there can be no assurances of this outcome.

New China channel partner

Contec is also pleased to announce it has provided Chinacomm Engineering Ltd. ("Chinacomm") rights to market Contec's Hornet product and services in China.

Chinacomm provides professional mobile network services for domestic and international mobile network operators and mobile network suppliers. Chinacomm's customers include China Unicom, the third largest mobile operator in the world.

"Chinacomm looks to be a great partner for us as they are currently moving their business focus into the mobile data arena," stated Don Lay, Contec's CEO. "So their carrier relationships and expertise are a great fit for us as operators assert more control in the value-added services marketplace."

Founded in 1987, Chinacomm is a leading wireless service provider in China with 400 employees and branch offices in Guangzhou, Hong Kong, Beijing, Chongqing, Xi'an, Chengdu and Nanning. Chinacomm established its mobile communication engineering division in 1999 and shortly thereafter successfully established strategic partnerships with world-renowned mobile network suppliers including Motorola, Ericsson, Nokia, NEC, Nortel and Lucent Technologies. Chinacomm was the largest value-added agent in China for Motorola pagers and paging systems.

Market Overview

The Chinese mobile market, the world's largest and fastest growing, now serves over 370 million subscribers and is anticipated to grow to over 600 million by 2010. Contec's Hornet delivers a flexible and scalable application hosting solution that meets the Chinese mobile operators' requirements to quickly develop and roll-out branded services to a subscriber base already receptive to mobile data services. For more information on this vast and growing market, go to www.contec.ca/asiafocus-whychina.

ON BEHALF OF THE BOARD OF DIRECTORS OF CONTEC INNOVATIONS

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 services 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 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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