SOURCE: TelePlus Enterprises, Inc.

January 10, 2006 06:00 ET

TelePlus Signs Agreement to Receive up to 1.2M Customer Leads per Year for Its Wireless Service

MONTREAL -- (MARKET WIRE) -- January 10, 2006 -- TelePlus Enterprises, Inc. (OTC BB: TLPE) (Frankfurt: YT3) (http://www.teleplus.ca) ("TelePlus" or the "Company") is pleased to announce that its wholly owned subsidiary, TelePlus Wireless, Corp. ("TelePlus Wireless") has signed a Lead Generation Agreement (the "Agreement") with the InPhonic Group ("InPhonic") that complements the Company's acquisition of certain assets of Liberty Wireless, announced last week. The Agreement states that InPhonic will refer to TelePlus, customers or potential customers not having qualified under the carriers' credit requirements. Once refused by the major carriers, these customers have no alternative but to turn towards prepaid services such as the ones offered by TelePlus. Under the terms of the Agreement, InPhonic has agreed to refer a minimum of 100,000 leads per month (1.2M leads a year) to TelePlus. In combination with the newly acquired customer base from Liberty Wireless, the monthly customer referrals from the Agreement will expand the existing customer base of TelePlus Wireless in a dramatic fashion. Liberty is currently the 3rd largest Sprint wireless reseller ("MVNO") on the CDMA network after Virgin Mobile and Qwest and is in the top 10 prepaid wireless providers in the US.

Assuming a conversion rate of 10% of leads into active customers, and assuming the new subscribers generate the same Average Revenue Per User (ARPU) of $40 per month as the Company's current customers, the customer base of TelePlus would be increased by 120,000 new subscribers per year and the revenues of the Company would be increased by $57.6M on an annualized basis. The leads that are generated under the agreement, typically credit-challenged customers, form the largest part of the lucrative prepaid segment of the wireless market. The prepaid segment is presently estimated at $7 billion and, as the fastest growing segment in the wireless and telecom industry, is predicted by industry analysts to reach $32 billion by 2008.

"The Lead Generation Agreement is like icing on the cake for TelePlus Wireless, as it ensures that the nationwide customer base that we acquired as part of the Liberty transaction will continue to grow at a breath-taking pace," stated Marius Silvasan, CEO and Chairman of TelePlus. "Even as a stand-alone initiative, we could see the benefits of this Agreement translate into increases of revenue of $57.6M, or even higher, per annum based on our ability to convert these leads into active customers, and this without taking into account the effects of organic growth. Of course, TelePlus also intends to aggressively implement a number of strategic marketing initiatives to accelerate the growth process and to capitalize on the momentum that we have gained as a result of the Liberty acquisition," added Silvasan.

About TelePlus (OTC BB: TLPE) http://www.TelePlus.ca

TelePlus Enterprises, Inc. ("TelePlus") is a provider of Wireless and Telecom products and services across North America. TelePlus Connect, Corp. -- is a reseller of a variety of Telecom services including landline, long distance and internet services. TelePlus Wireless, Corp. -- operates a virtual wireless network selling cellular network access to distributors in the United States. TelePlus Retail Services, Inc. -- owns and operates a national chain of TelePlus branded stores in major shopping malls, selling a comprehensive line of wireless and portable communication devices.

The statements which are not historical facts contained in this press release are forward-looking statements that involve certain risks and uncertainties, including but not limited to risks associated with the uncertainty of future financial results, additional financing requirements, development and acquisition of new product lines and services, government approval processes, the impact of competitive products or pricing from technological changes, the effect of economic conditions and other uncertainties, and the risk factors set forth from time to time in the Company's SEC reports, including but not limited to its annual report on Form 10-KSB; its quarterly reports on Forms 10-QSB; and any reports on Form 8-K. TelePlus Enterprises, Inc. takes no obligation to update or correct forward-looking statements.

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