Business Services Industry

Axesstel and XL Telecom Win BSNL Tender in India; Over 350,000 Axesstel Fixed Wireless Phones to be Distributed to Largest Government Telecom Service Provider in India

Business Wire, April 13, 2006

SAN DIEGO & HYDERABAD, India -- Axesstel, Inc. (AMEX:AFT), a leader in the design and development of fixed wireless voice and broadband data products, and XL Telecom, a telecom equipment and CDMA handset manufacturing company, today announced the award of a tender from Bharat Sanchar Nigam Limited (BSNL), the largest government telecommunications service provider in India, for over 350,000 Axesstel low cost fixed wireless desktop phones based on its L800 platform. Axesstel will ship desktop phone kits to XL Telecom, which will complete assembly and distribute the commercialized phones to BSNL. Axesstel has received an initial purchase order from XL Telecom for the partial fulfillment of this award and shipments of the L800 kits to XL Telecom have already begun.

"We chose to partner with Axesstel for this opportunity because it offers a high quality fixed wireless phone at a very competitive price," said Pramod Kumar Jain, director for XL Telecom. "This combination enabled us to win this tender against some very formidable competitors, and we look forward to working closely with Axesstel to fulfill this sizeable order."

"Securing this significant order with XL Telecom diversifies our customer base and revenue streams and increases our market penetration in India," said Mike Kwon, chairman and chief executive officer of Axesstel. "We now supply fixed wireless devices to two of the largest telecommunications providers in India. This is a solid achievement, and we expect to build on it and further increase our customer base, broaden our product portfolio and expand our market reach in the coming months."

The L800 is a durable fixed wireless phone designed with a unique dust-resistant keypad. In addition to high quality voice calling, the L800 offers a multitude of enhanced features such as two-way SMS, caller ID, call waiting, call forwarding, three-way calling and hands-free dialing for greater convenience and flexibility.

ABOUT XL TELECOM LIMITED

XL Telecom Ltd (XLTL) is a fast growing, established, profit-making company engaged in the two principal areas of business namely telecom and energy. XLTL is a professionally managed company and is headed by a first generation entrepreneur.

XLTL is engaged in manufacturing telecom equipment, largely CDMA fixed wireless phones & mobile handsets, SMPS power systems and cable accessories. XLTL is a dedicated supplier of these telecom products to telecom operators and service providers like TATA, Reliance, BSNL, MTNL and international clients like MTML and Telelinks as well as network integrators like Nortel and Ericsson. XLTL has active technical collaborations with leading multinational companies including Kyocera Wireless Corp for the manufacture of CDMA mobile handsets, Axesstel Inc. for the manufacture of fixed wireless handsets and Corning Cable Systems for the manufacture and sale of cable accessories.

ABOUT AXESSTEL, INC.

Axesstel (AMEX:AFT) is a leader in the design, development and sales of fixed wireless voice and broadband data products. Axesstel's product portfolio includes fixed wireless desktop phones, public call office phones, voice/data terminals and broadband modems for access to voice calling and high-speed data services. The company delivers innovative fixed wireless solutions to leading telecommunications operators and distributors worldwide. Axesstel is headquartered in San Diego, California and has a research and development center and manufacturing facilities in Seoul, South Korea. For more information on Axesstel, visit www.axesstel.com.

(C) 2006 Axesstel, Inc. All rights reserved. The Axesstel logo is a trademark of Axesstel, Inc.

Forward-Looking Statements

"Safe Harbor" Statement under the Private Securities Litigation Reform Act of 1995: With the exception of historical information, the statements set forth above include forward-looking statements relating to product capabilities and anticipated timing of expected product introductions and shipments which may affect future results and future viability. Axesstel wishes to caution readers that actual results could differ materially from those suggested by the forward-looking statements due to risks and uncertainties and a number of important factors. Those factors include, but are not limited to, the risk of delays in the adoption of new technologies in developing markets; the lack of continued acceptance or growth of CDMA technology in target markets; the possibility that networks that can support our CDMA EV-DO and EV-DV broadband modems will not be widely deployed; competition for contracts with our large telecommunication carrier customers; the risks of dependence on a limited number of those customers; the requirement for end users to accept our products and technologies; our dependence on limited or sole source suppliers; the possibility of unforeseen manufacturing difficulties including those associated with Axesstel manufacturing its own products; and other risk factors and information contained in Axesstel's filings with the Securities and Exchange Commission, such as the rapidly changing nature of technology; evolving industry standards; and frequent introductions of new products and enhancements by competitors; the competitive nature of the markets for Axesstel's products; Axesstel's need to gain market acceptance for its products; Axesstel's need to attract and retain skilled personnel; potential intellectual property-related litigation; and Axesstel's primary dependence on one large customer. All forward-looking statements are qualified in their entirety by this cautionary statement, and Axesstel undertakes no obligation to revise or update this press release to reflect events or circumstances occurring after this press release.

COPYRIGHT 2006 Business Wire
COPYRIGHT 2008 Gale, Cengage Learning

 

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