Neotel International Inc.
TSX VENTURE : NIT

Neotel International Inc.

April 10, 2006 11:09 ET

Neotel Reaches Agreement With George Solomos; Neotel Closes Private Placement, Etc.

MARKHAM, ONTARIO--(CCNMatthews - April 10, 2006) - Neotel International Inc. ("Neotel") (TSX VENTURE:NIT) announced today that it has reached an agreement with George H. Solomos, a former officer, director and over 10% shareholder. In connection with the agreement reached with Mr. Solomos, the Company will pay existing indebtedness owed to Mr. Solomos, in the approximate amount of $55,000, over a twelve (12) month period. Mr. Solomos has also agreed to rescind all options to acquire Neotel shares held by him upon payment to him of an additional $22,666, payable over 12 months. In addition, Mr. Solomos has agreed to sell 1,887,500 shares owned by him, to third parties, at $0.18.5 per share.

Furthermore, in connection with the agreement reached with Mr. Solomos, certain of Mr. Solomos' immediate family members and relatives, some of whom reside offshore, have agreed to option 2,144,444 shares owned by them to a third party, such option being good for one year and is to be exercised in quarterly installments or the option will terminate. The option price is fixed at $0.25 per share.

In other news, the Company announces that on February 14, 2006, it completed the private placement sale of 312,500 units ("Units") at a price of $0.20 per Unit to raise gross proceeds of $62,500. Each Unit consisted of one common share and one common share purchase warrant ("Warrant"). Each whole Warrant entitles the holder to acquire one additional common share at a price of $0.30 expiring February 14, 2008.

Neotel further announces that on March 29, 2006, the board of directors approved a grant of stock options to certain directors, officers and employees of Neotel in accordance with Neotel's Stock Option Plan. Specifically, the grant was in respect of 250,000 stock options, such options having a strike price of $0.20 per share expiring February 10, 2010.

ABOUT NEOTEL INTERNATIONAL INC.

Neotel International Inc. is a provider of identity, security and trust solutions as well as professional services specializing in industry based biometric identification solutions. Additional information about Neotel is available at www.neotel.ca.

16,221,534 shares outstanding

The TSX Venture Exchange does not accept responsibility for the adequacy or accuracy of this release.

Contact Information

  • Neotel International Inc.
    Howard Phee
    President
    (905) 948-9229 ext: 22