AmTec To Form New Telecom Partnership In Shanghai.

NEW YORK--(BUSINESS WIRE)--Nov. 3, 1998--

Also agrees to increase ownership in GTS Shanghai operations

AmTec (ASE: ATC) announced today the signing of two agreements with Shanghai Science and Technology Investment Company ("SSTIC") intended to ensure AmTec's role as a key foreign telecom participant in Shanghai, the commercial and financial center of China. SSTIC, which enjoys strong political sponsorship, was established under the leadership of the Shanghai Municipal Government to invest in telecommunications and technology projects, and its shareholders include nine major Chinese financial institutions and state enterprises.

The two agreements call for AmTec to (i) finance SSTIC's expansion of certain existing telecom networks in Shanghai and (ii) increase its stake in Shanghai V-Tech Telecommunications Systems Company ("V-Tech"), a joint venture currently owned by SSTIC and Global TeleSystems Group, Inc. ("GTS Group"). As previously announced, AmTec and GTS Group have agreed for AmTec to acquire a 75% equity interest in V-Tech from GTS Group for approximately 6 million shares of AmTec common stock at a price of $1.35 per share. SSTIC holds the remaining 25% of V-Tech. The pending V-Tech acquisition is subject to AmTec shareholder approval and certain other conditions.

SSTIC's other network interests in Shanghai include a GSM cellular network developed in partnership with McCaw International, CCT Telecom and Unicom, one of China's two licensed cellular telephone network operators. Unicom's Shanghai cellular network currently has over 150,000 subscribers, making it Unicom's largest and most profitable cellular network. As the Shanghai cellular network is now operating near design capacity, SSTIC and Unicom intend to expand network capacity in the near future.

In addition to financing SSTIC's expansion of certain networks in Shanghai, AmTec and SSTIC have agreed that AmTec will have the right to increase its stake in V-Tech to 93% following the completion of AmTec's purchase of GTS Group's 75% V-Tech stake. Subject to certain regulatory and other conditions, AmTec has agreed to pay approximately $3.4 million to increase its equity ownership of V-Tech.

Joseph Wright, Chairman and CEO of AmTec, stated, "Shanghai is the single most attractive telecom market in China today, and SSTIC holds some of the premier telecom assets in Shanghai. Establishing AmTec as SSTIC's key foreign strategic partner in financing the expansion of these assets is a wonderful opportunity for our shareholders to benefit from Shanghai's ongoing explosive growth."

Mr. Wright continued, "I am also delighted to have the opportunity to increase our ownership in V-Tech which, in partnership with Shanghai VSAT Network Systems Company (a Chinese VSAT network operator controlled by SSTIC), is signing agreements with major international telecom companies to offer frame relay data networking in China. We expect that service to multinational clients in several major cities in China will commence within six months. V-Tech has already pre-sold 100% of the initial capacity, so we're confident that demand in China for this service is very strong."

Liu Zenyuan, Chairman of SSTIC and Chairman of Shanghai Unicom, stated, "SSTIC is very happy to have AmTec as its strategic telecom partner. We believe that AmTec can provide SSTIC with advanced technology, access to direct foreign investment and assistance in potential future stock exchange listings of our telecom businesses. We look forward to a long-term, fruitful partnership with AmTec."

AmTec, Inc. is a telecommunications company with operations in the People's Republic of China. AmTec is developing 10 cellular networks in Hebei Province (population: 65 million) in partnership with China Unicom (one of China's two licensed cellular telephone operators), NTT International, Itochu, and the Hebei Provincial Government. AmTec has announced plans to begin providing cable television programming in Hunan Province (population: 63 million) and data networking services throughout China after consummating pending transactions with United International Holdings (NASDAQ: UIHIA) and Global TeleSystems Group, Inc. (Nasdaq and Easdaq: GTSG).

Note: Forward-looking statements in this press release are necessarily subject to risks and uncertainties that may affect the accuracy of such statements. Such risks may include any political instability in China, any delays in construction of networks, and market acceptance of and demand for the Company's products. For a discussion of such risks, please refer to the Company's Form 10(k) filed with the Securities Exchange Commission for the fiscal year ending March 31, 1998. The Company undertakes no obligation to update such factors or to publicly announce the result of any revisions to the forward-looking statements contained herein.