SOURCE: Nettel Holdings

February 01, 2007 09:34 ET

PhoneZoo Introduced Virtual Electronic PIN Delivery System as an Enhancement to Its Prepaid Calling Card Wholesaler Program

PORTLAND, OR -- (MARKET WIRE) -- February 1, 2007 -- Nettel Holdings, Inc. (OTCBB: NTTL), Berlin and Frankfurt Stock Exchanges (NT7, WKN 727487), PhoneZoo division, introduced virtual electronic PIN delivery system as an enhancement to its prepaid calling card wholesaler program.

PhoneZoo has been working with selected POS terminal manufacturers and distributors on an electronic PIN distribution system for delivering a range of prepaid telecom services at the retail level.

The Point of Sales Activation (POSA) system consists of a credit-card style terminal with an integrated printer that is capable of printing the entire back of a prepaid card with a PIN number at the time of sale. These terminals already exist in most retail stores. PhoneZoo just has to supply the software. The device will then communicate constantly with PhoneZoo servers at headquarters in Portland to request the replenishment of new calling card PINs and other prepaid product inventory sold. PINs stored at PhoneZoo servers are securely sent to the point-of-sale (POS) terminals as needed. When a customer requests a product, the retail clerk selects the requested denomination and the terminal prints the appropriate PIN on the back side of the card. Retailers have the ability to activate and recharge phone cards in real time, for any dollar or minute amount.

By electronically delivering prepaid airtime on demand rather than using the traditional method of preprinting and distributing PINs on hard cards, distributors and retailers avoid significant costs associated with printing, inventory, and managing products. A retailer will only pay for prepaid products sold. In addition, because the cards carry no value until they are printed, they can be displayed in high traffic impulse areas. Distributors and their retailers/agents are given a confidential internet web page to access, monitor (real-time), and manage daily store sales.

POSA does a lot for our distributors and retailers. It essentially gives them credit terms, as they no longer have to pay in advance for inventory. Many retailers will also realize an immediate sales boost simply by eliminating any possible out of stock conditions.

Our current distributor network of stores consists of over 40,000 retail outlets, including convenience stores, newsstands, grocery stores and discount stores. The demand for POSA from our distributors has been increasing rapidly. More and more distributors want to add POSA. PhoneZoo has already shipped 26 systems to participating distributors to be tested. The company expects to be shipping over 1,000 software packages in the next several months with the potential for sharply ramped up shipments forecasted by the end of this year.

The Virtual POSA software developed by Entec Software is far superior to any other in the prepaid POSA distribution industry. In addition to prepaid calling cards, the software is also capable of providing these additional solutions: prepaid wireless minutes, prepaid long distance, dial tone, internet, MasterCard and other services. It is very user-friendly, requires little setup or training costs, and can also provide employee accountability and security from fraud.

For additional information on PhoneZoo wholesale program, please email to distributors@phonezoo.net.

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