Axesstel Celebrates Opening of New Production Facilities; Visiting Dignitaries to Join Management in Grand Opening Ceremonies.

SAN DIEGO -- Axesstel, Inc. (AMEX:AFT), a leader in the design and development of fixed wireless voice and broadband data products, today celebrates the grand opening of its new manufacturing facilities in Gyeonggi Province, South Korea. The new facility came on line in August 2005 and provides complete production capabilities including surface mount technology manufacturing lines and related electronic testing.

"We are honored to have dignitaries join us in celebrating our new facilities in Gyeonggi Province," said Mike Kwon, chairman and chief executive officer for Axesstel. "Local officials have been extremely supportive in facilitating Axesstel's timely launch of our plant operations. By adding strategic production capabilities, we can take advantage of the close proximity of our engineering talent pool and the vibrant manufacturing environment found in Gyeonggi Province."

"Production has ramped smoothly since the new plant came on line in August, and our Korean-based design teams are benefiting from quicker manufacturing line adjustments and rapid turns in prototyping," commented David Morash, president and chief financial officer. "Our strategy is to drive more complex product assemblies through this facility and ensure the highest product quality in our fixed wireless products and broadband EV-DO modems while enabling the flexible production ramp of higher margin products to meet growing market demand. Our highest volume production needs remain directed to our contract manufacturer, Wistron NeWeb Corporation (WNC), which completed its move of facilities for Axesstel's fixed wireless products to mainland China in July 2005."

At the new Axesstel production and design facility, one manufacturing line is available to introduce new product designs and cost reduce and optimize existing product designs in order to speed time to market. Second source supply chain components are tested on this line to enable Axesstel to establish multiple component suppliers, to leverage the most cost-effective components and to ultimately reduce supply chain costs. The addition of this in-house manufacturing line reduces inefficiencies by eliminating interruptions to the high volume production lines at WNC.

About Axesstel, Inc.

Axesstel (AMEX:AFT) is a leader in the design and development of fixed wireless voice and broadband data products. Axesstel's product portfolio includes fixed wireless desktop phones, payphones, voice/data terminals and broadband modems for access to voice calling and high-speed data services. Axesstel delivers innovative fixed wireless solutions, currently based on 3G Code Division Multiple Access (CDMA) technology, 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) 2005 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 production capabilities, cost reductions, manufacturing efficiencies and expected product introductions 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; the risk that the implementation of the new manufacturing facilities or moving outsourced manufacturing to China will not provide cost reductions, improve efficiencies, or expedite product introductions; 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.