SOURCE: Nettel Holdings, Inc.

August 21, 2006 18:30 ET

Nettel Holdings Major Developmental Accomplishments Achieved in Second and Third Quarter

PORTLAND, OR -- (MARKET WIRE) -- August 21, 2006 -- Nettel Holdings, Inc. (OTCBB: NTTL), Berlin and Frankfurt Stock Exchanges (NT7, WKN 727487), Major Developmental Accomplishments Achieved In Second and Third Quarter.

Although the second quarter of 2006 and most of the current third quarter continued to be developmental, great progress has been made in building Phonezoo's completely integrated pre-paid calling card system and AVOP's completely automated VOIP minutes trading exchange. As a result of the monitoring and testing of these truly extensive proprietary infrastructures, Nettel Holdings is now in a much better position to generate increased earnings and reach profitability.

PhoneZoo activity for the month of July 2006 (highlights)

-       Currently averaging over 400 phone cards sold per day ($5 cards)
-       PhoneZoo has sold over 14,000 cards in four states, and Canada
-       The minutes for the cards are obtained through AVOP
        (our own division). With the help of AVOP's buying power, this
        enables our clients to get the lowest rates as they do business
        with the most advanced system the industry has to offer
AVOP is processing an average of $10,000 in transactions per day (10% profit). Management expects these numbers to remain consistent while improving. We are aware that the completion of each division has taken longer than expected, and we are certain there will always be room for changes and improvements as we strive to meet market needs. We feel in doing this, it ensures future success and longevity in this industry.

In the second and third quarters we found a need to enhance AVOP even more for the sake of new customers and their needs. New internal organizational procedures had to be installed, and technical modifications to the system were produced by the Entec division. The end result is that AVOP is a smooth functioning trading exchange for phone minutes that can deal with large buyers and sellers at the same time. In view of all this, basically from the start, we should be able to generate significant growth from this point onward.

PhoneZoo also expended considerable time and expense to further enhance its integrated card system. This was necessary for us as a direct response to feedback from many distributors. PhoneZoo has developed its own unique proprietary phone system. Every aspect of our phone card from registration to the quality of each call has to be monitored and brought to high quality standards. Management believes that its distributors and retailers are satisfied with the improvements we've implemented from their input, and that sales of the cards will continue to increase as a result. In view of all these necessary changes taking considerable time, we are realistic in our assessment that they had to be dealt with quickly as possible while they were still easy to modify or initiate.

All of Nettel Holdings management agrees that time is money, so we had no other option but to invest our time wisely for future revenue that will speed up profitability factors. Some tough choices have to be made from time to time but if production is running smoother afterwards from then on, it makes good business sense. This was a very good move on behalf of stockholders, our sales potential, and that of our clients who needed these changes looked into.

Safe Harbor: Except for historical information contained herein, the statements in this news release are forward-looking statements that are made pursuant to the safe harbor provisions of the Private Securities Reform Act of 1995. Forward-looking statements involve known and unknown risks and uncertainties, which may cause a company's actual results in the future to differ materially from forecasted results. These risks and uncertainties include, among other things, the company's ability to attract qualified management, raise sufficient capital, and effectively compete against similar companies.

Contact Information

  • Contact:
    Sam Brewer
    503-914-6206