Axesstel and TeleCard Expand Relationship.

SAN DIEGO -- Axesstel, Inc. (AMEX:AFT), a designer, developer and marketer of fixed wireless voice and data products for the worldwide telecommunications market, today announced details of an expanded supplier relationship with TeleCard Limited of Pakistan, as it broadens its service offerings into Pakistan's residential marketplace.

TeleCard has agreed to purchase Axesstel's AXW-P450 and AXW-P1900 voice and high-speed 1x data telephones and anticipates immediate deployment to its customers following delivery. This expanded relationship represents the first major customer commitment for Axesstel's next-generation CDMA450 fixed wireless telephones. TeleCard's use of the 450 MHz frequency band allows it to benefit from cost, coverage and spectral efficiencies delivered by the lower frequency band, while offering customers feature-rich technology. The telephones will be co-branded with Axesstel and TeleCard names, with shipments through the second quarter of 2005.

"We view our relationship with Axesstel as an important part of our future growth strategy," said Fazal Hussain, CEO of TeleCard. "We have positioned TeleCard as the premier integrated telecom solution provider in Pakistan, and our association with Axesstel focuses on high-quality products for our customers."

TeleCard recently launched the first independent WLL-based telecom service in Pakistan under the brand name of "GO CDMA," marking the beginning of the company's transformation from a pay phone operator into a fully integrated telecom solution provider.

"We are extremely happy with our expanded relationship with TeleCard Limited," said Mike Kwon, Chairman and CEO of Axesstel. "TeleCard helped establish a very successful, nationwide network of Public Call Offices (PCOs) using Axesstel's high-quality products, and jointly we became known for quality of products and service. We are proud of our long-standing association with such a prestigious international telecommunications company and remain committed to maintaining our position as their preferred supplier of fixed wireless phones and terminals."

About Axesstel, Inc.

Axesstel designs, develops and markets fixed wireless voice and data products for the worldwide telecommunications market. Axesstel's products are based on Code Division Multiple Access (CDMA) technology, and include CDMA2000 and emerging third-generation (3G) broadband data technologies, which are newer versions of the CDMA standard. Axesstel's product lines include fixed wireless desktop phone terminals, payphone terminals, voice/data terminals and broadband modems used for high-speed data services. Axesstel is headquartered in San Diego, with a research and development center in Seoul, South Korea. More information on Axesstel can be accessed through its website at www.axesstel.com.

About TeleCard Limited

TeleCard Limited is the first privately owned, listed company in Pakistan providing the most technologically advanced integrated telecom services on state-of-the-art Next Generation Network. TeleCard has deployed a state-of-the-art nationwide Wireless Local Loop system with the largest footprint in Pakistan, covering a large part of the suburban and rural areas in addition to the main metropolitan cities. TeleCard has also acquired the licenses in all the 14 regions of Pakistan for Local Loop, Long Distance and International Services. TeleCard's head office is in Karachi, Pakistan. More information on TeleCard can be accessed through its website at www.telecard.com.pk.

"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 customer relations, expected fulfillment of purchase orders, technology and product performance which may affect future results and the future viability of Axesstel. 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 risk factors. Those factors include but are not limited to the possibility of changes to the anticipated customer and product mix, unforeseen manufacturing difficulties, the risks of primary dependence on one large customer and the risk factors noted 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; potential intellectual property-related litigation; Axesstel's need to attract and retain skilled personnel; and Axesstel's primary reliance on its sole manufacturer.