CNE Group, Inc. Secures a Two-Year Project Financing Commitment Relating to $25,000,000 of California Freeway Emergencies ``SAFE'' Upgrade Projects.

NEW YORK -- CNE Group, Inc. (AMEX: CNE) today announced that it has entered into a two-year Project Financing Agreement with New York based Capstone Business Credit, LLC related to CNE's anticipated participation in the "Cellular Call Box Upgrade and Maintenance Service" projects for numerous Service Authority for Freeway Emergencies ("SAFE") programs within California. These call box programs operate over 17,000 motorist aid analog call boxes that will require upgrades to digital cellular technology now available through U.S. Commlink, Ltd., the Company's west coast subsidiary.

U.S. Commlink, managed by its President Thomas C. Leyen, is focused on the advanced engineering and design, installation and sale of wireless emergency call boxes and wireless data products used in homeland security systems. U.S. Commlink will be bidding on all the SAFE upgrade contracts as they are requested. Commenting on this arrangement, Mr. Leyen stated, "With our relationship with Capstone in place, we are now be able to pursue large contracts and compete more effectively. We look forward to being able to deploy our proven product line and demonstrate that we have the ability to deliver our quality wireless solutions and services. I believe that we are now in position to become a leading supplier of wireless technology including call boxes and intelligent traffic system solutions in California." He continued by stating, "We have bid on our first project in September and will be bidding on several more by year-end. With this relationship we expect to expand our business into other states and municipalities."

George W. Benoit, CNE's Chairman stated "This is another significant step forward in executing our business plan. Our project in Nevada on I-15 is proceeding smoothly, and this new relationship with Capstone should allow us to become more competitive in the call box and wireless voice and data solutions markets. We look forward to maintaining a relationship with Capstone for years to come."

John Rice, Capstone's President stated "We are excited about being able to participate with CNE in its various bids for the California SAFE work. We look forward to a long term relationship with Mr. Benoit, Mr. Leyen, and the entire CNE Group team."

CNE Group, Inc.

CNE Group, Inc.'s primary operating subsidiaries are SRC Technologies, Inc. and U.S. Commlink, Ltd. SRC is the parent of Connectivity, Inc. and Econo-Comm, Inc. (d/b/a Mobile Communications). Connectivity, U.S. Commlink and Mobile Communications market, manufacture, repair and maintain remote radio and cellular-based emergency response products to a variety of federal, state and local government institutions, and other vertical markets throughout the United States. The Company has intellectual property rights to certain key elements of these products - specifically, certain communication, data entry and telemetry devices.

The Company is located at 200 West 57th Street, New York, NY 10019 (212-977-2200). SRC, Connectivity and Mobile Communications are located at 3733 NW 16th Street, Lauderhill, FL 33311 (954-587-1414). U.S. Commlink is located at 6244 Preston Avenue, Livermore, CA 94550 (925-960-0097).

Certain statements in this press release constitute "forward-looking statements" relating to CNE Group, Inc. and its subsidiaries (the "Company") within the meaning of the Private Securities Litigation Reform Act of 1995. All statements regarding future events, our financial performance and operating results, our business strategy and our financing plans are forward-looking statements. In some cases you can identify forward-looking statements by terminology, such as "may," "will," "would," "should," "could," "expect," "intend," "plan," "anticipate," "believe," "estimate," "predict," "potential" or "continue," the negative of such terms or other comparable terminology. These statements are only predictions. Known and unknown risks, uncertainties and other factors could cause actual results to differ materially from those contemplated by the statements. In evaluating these statements, you should specifically consider various factors that may cause our actual results to differ materially from any forward-looking statements.