SOURCE: INNOTELCO INC

June 12, 2006 13:30 ET

INNOTELCO Announces Contract With Pan Atlantik S.A.

TORONTO -- (MARKET WIRE) -- June 12, 2006 -- INNOTELCO, Inc. (PINKSHEETS: ILCO), a marketer and distributor of telecom hardware and network solutions announces today that the company has signed a contract with Pan Atlantik.

INNOTELCO is pleased to announce that the Letter of Intent (LOI) signed with Pan Atlantik S.A. for factoring finance over a two-year period has now become a contract with advantageous extension options after the first contractual period. The contract calls for Pan Atlantik to assist INNOTELCO with necessary funds for use in their projects. After the first successfully fulfilled contract, the companies will then further negotiate a definitive breakdown of percentages each will yield from upcoming business opportunities.

"INNOTELCO is proud to be working with a company which we believe can stimulate significantly faster fulfillment of our existing contracts," said Radomir Popovic, Innotelco's Vice-President of Sales and Marketing. "Pan Atlantik S.A. has positioned them to become a reliable partner by providing favourable financing conditions, as well as offering a constant source of expansion and development of our business network." Further, "INNOTELCO's negotiating team will be leaving for Europe and Africa to initialize new contract options over the summer."

"We believe that this kind of bilateral cooperation should provide fresh flexible perspective in contracts that INNOTELCO already has. Fulfillment of existing contracts is a matter of previously agreed timelines, which we can significantly speed up by the start of adequate new contracts. Also, we are looking forward to starting fresh perspectives in cooperation with INNOTELCO," said Boris Al. Zlopasa, CEO, Pan Atlantik S.A.

"INNOTELCO -- Building Bridges for Communication"

About Innotelco, Inc.

Innotelco is a telecom hardware supplier, specializing in servicing emerging markets looking to expand their telecommunications networks. Innotelco products range from indoor and outdoor coaxial cables and accessories to fibre optics and switching equipment.

Safe Harbor Statement

This press release contains forward-looking statements as defined in the Securities Litigation Improvements Act of 1996. The words "believe," "expect," "estimate," "project" and similar expressions define forward-looking statements, which speak only as of the date the statement was made. Innotelco, Inc. undertakes no obligation to publicly update or revise any forward-looking statements, whether because of new information, future events or otherwise. Forward-looking statements are currently subject to risks and uncertainties, some of which cannot be predicted or quantified. Future events and actual results could differ materially from those set forth in, contemplated in, or underlying the forward-looking statements. The risks and uncertainties to which forward-looking statements are subject include, but are not limited to, the Company's ability to meet its projected growth, the effects of government regulation, competition and other material risks.

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