SOURCE: Nettel Holdings, Inc.

November 22, 2005 06:11 ET

Nettel Holdings Announces Third Quarter Financial Results

Revenues Increase 1300% Over Prior Quarter

PORTLAND, OR -- (MARKET WIRE) -- November 22, 2005 -- Nettel Holdings (OTC BB: NTTL), Berlin and Frankfurt Stock Exchanges (NT7, WKN 727487), today reported its financial results for the Three-Month period ended September 30, 2005.

Nettel Holdings' revenues for the quarter ended September 30, 2005 rose 1300% to approximately $7.34 million from approximately $530,000 in Q2 2005.

Gross profit for the quarter ended September 30, 2005 increased 1300% to approximately $673,000 from approximately $49,000 in Q2 2005.

Nettel Holdings would have reported Net Income of approximately $406,000, or $0.015 per share, if it weren't for a non-cash charge of $1,633,000 for the market value of the Company's common stock issued for telecommunication consulting services. Due to this non-cash charge, the Company's net loss for the third quarter of 2005 was $1.23 million, or $(0.04) per share, compared to net loss for the 2nd quarter of 2005 of $114,000, or $(0.00) per share.

Significant strategic milestones achieved

--  Day to day operations of Nettel Telecom during the past 4 weeks has
    been transferred to a separate staff inside Nettel. This management
    transfer has allowed Nettel Holdings to focus on the development of its
    other subsidiaries.
--  PhoneZoo has printed 400,000 prepaid calling cards and will begin
    fulfilling back orders. Depending on the success of the initial batch,
    PhoneZoo will ramp up to processing 1 million cards per month which will
    contribute significant revenue and profit to Nettel Holdings. More details
    will be released in 30 days.
--  The 4th Quarter will also have revenues generated from AVOP,
    VoipEscrow, and Nettel Trading. These subsidiaries generate high-profit
    margins and we expect them to grow exponentially in the months ahead. More
    details will be released in 30 days.
--  Expansion and growth of our subsidiary companies has created a much
    stronger and diverse company.
Entec Software, a wholly owned subsidiary of Nettel Holdings, continues to produce a significant amount of intellectual property for Nettel Holdings. Entec Software is located in a five-story office building in Ho Chi Minh City, Vietnam, and employs over 70 high-level software programmers/engineers and administrative staff. The salary of a Masters-level software engineer in Vietnam is approximately $300-500/month (US), which is significantly less then the US equivalent salary of $8,000/month. Entec Software's total operational expenses are $25,000/month, including rent, salaries, and health insurance. An equivalent US-based operation would cost millions of dollars to replicate. Entec Software has produced the telecom software for AVOP, VoipEscrow, Nettel Trading, Nettel Telecom, and is currently working on other profitable projects for current and future subsidiaries of Nettel Holdings. For pictures of Entec Software's office, please go to:

Michael Nguyen, President and CEO of Nettel Holdings, commented, "Nettel Holdings has seen incredible growth quarter after quarter. We have focused on building a solid company, step by step, while continuing to prudently spend and focus on shareholder value. Since January of this year, we have developed VoipEscrow, AVOP, have begun wholesaling minutes via Nettel Telecom, and are beginning to distribute our calling cards. We also opted out of an equity financing agreement that would have forced us to register 113 million new shares, which could have created a dilution to the value of our stock. During this time, our revenues have shifted from being generated from trading transactions to telecom-based business. Our revenues have more than doubled from Q1 to Q2, and now in Q3 are over 10 times greater than Q1 and Q2 combined. To see that our stock price is lower today than it was in January is a mystery to me as we are now not only more diverse, we are also generating large revenues and creating intellectual property and technologies that we are proving are necessary in the growing VoIP telecom industry. Our company today is much stronger and healthier that it was before this year, and we are still accomplishing this without incurring debt. We are committed to be efficient and to remain quick and agile. Nettel Holdings is still in its infancy and already producing substantial revenues. Operational performance to date has stemmed from one subsidiary, Nettel Telecom, which in itself can grow at an enormous rate even from today's phenomenal output. In Q4, Nettel Telecom and Nettel Trading will produce much of the revenue, with additional revenues derived from PhoneZoo, VoipEscrow, and AVOP. As more of our subsidiaries ramp up production, I expect Nettel Holdings to be one of the most successful technology incubators in existence in the market place. Our software programmers/engineers in Vietnam are some of the brightest IT minds in the world, and all of this IP is 100% owned and operated by Nettel Holdings at 1/50th of the cost of an equivalent US-based operation. Investors can feel confident that Nettel Holdings will continue to execute its business plan in the best interest of shareholders with little if any dilution from this point forward."

Safe Harbor Statement

Some statements in this release are "forward-looking statements" as that term is defined in Sections 27A of the Securities Act of 1933 as amended (the "Securities Act"), and Section 21E of the Securities Exchange Act of 1934 as amended (the "Exchange Act"), and are subject to certain risks and uncertainties, including, but not limited to, economic conditions, competition, changes in laws and the demand for the company's goods and services, which could significantly affect anticipated future results. Actual results may differ materially from any forward-looking statements.

About Nettel Holdings, Inc.

Nettel Holdings, Inc. engages in the telecommunication and software business. The company's Nettel Trading division exports computer electronics equipment. Its Entec division develops accounting, finance, project management, inventory system, database management, presentation tools, email, voice recognition, and word processing software. In addition, the company offers telecommunications long distance and prepaid calling card minutes. Nettel Holdings is based in Portland, Oregon.

L.G. Zangani, LLC provides financial public relations service to the Company. As such L.G. Zangani, LLC and/or its officers, agents and employees, receives remuneration for public relations and or other services in the form of monies, capital stock in the Company, warrants or options to purchase capital in the Company.

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