SOURCE: Petel Incorporated

June 25, 2008 10:34 ET

Petel Inc. Reduces Annual Expenses by $53,000, Improving Bottom Line

LONDON--(Marketwire - June 25, 2008) - Petel Incorporated (PINKSHEETS: PTEI), the Broadband TV and Digital Media specialists, today announce the successful negotiation of significant savings on the fixed operating costs of adult entertainment subsidiary SexQube.TV, the broadband, free-to-view service where tele-shopping meets online shopping for retail, pay-per-view and video-on-demand in over 100 genre channels.

In line with group policy of continual cost control and ongoing monitoring of expenditure in all areas of business, the board is pleased to announce substantial savings of 63% have been achieved on the fixed costs of service delivery for adult entertainment subsidiary SexQube.TV. Today's announcement represents a direct reduction of overall fixed costs for the subsidiary of some $53,000 per annum increasing overall margins and decreasing cash burn.

"We are pleased to share these cost efficiencies with our shareholders today," comments CEO David Morton. "We continue to work hard on optimising all aspects of group business and in particular, SexQube.TV, where we achieved overall reductions in Payment Service Provision of 8% in late 2007. Further to previous announcements of successful platform and marketing tests, this now completes the fine tuning and optimisation of the adult business and we now look forward to making announcements of increased marketing spend in the coming weeks."

Further adult content partners and providers are currently in negotiation and announcements are expected in due course.

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Forward-Looking Statements:

A number of statements contained in this press release are forward-looking statements that are made pursuant to the safe harbor provisions of the Private Securities Litigation Act of 1995. These forward-looking statements involve a number of risks and uncertainties, including timely development, and market acceptance of products and technologies, competitive market conditions, successful integration of acquisitions and the ability to secure additional sources of financing. When used in this press release, words such as "could," "plan," "estimate," "expect," "intend," "may," "potential," "should," and similar expressions are forward-looking statements.

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