CabelTel International Corporation Reports 2006 Second Quarter Results.

DALLAS -- CabelTel International Corporation (AMEX:GBR), "the Company," a Dallas-based company with investments, as of June 30, 2006, in a retirement center, a North Texas outlet mall and gas and oil wells, today reported a net income of $1.2 million or $1.25 per share for the six months ended June 30, 2006, compared to a net loss of $297,000 or $0.30 per share for the same period in 2005.

Key items for the six months ended June 30, 2006, compared to the same period in 2005 included:

The Company reported net income of $1.2 million for the six months ended June 30, 2006 as compared to a net loss of $297,000 for the same period in 2005.

For the six months ended June 30, 2006, the Company recorded revenues of $2.2 million for its real estate operations, as compared to $2.2 million for the same period in 2005.

For the six months ended June 30, 2006, revenues for the oil and gas operation was $995,000 as compared to $810,000 for the same period in 2005. The increase was due principally to increases in the price of crude oil.

For the six months ended June 30, 2006, real estate operating expenses were $1.6 million as compared to $1.3 million for the six months ended June 30, 2005. The increase was due principally to increases in operating costs, including promotional expenses, for the Gainesville outlet mall during the period.

For the six months ended June 30, 2006, operating expenses for the oil and gas operation were $726,000 as compared to $559,000 for the same period in 2005. The increase was due principally to the cost of well repairs.

For the six months ended June 30, 2006, interest income was $322,000 as compared to $68,000 for the same period in 2005. The increase was due principally to an increase in notes receivable due from CableTEL AD, a related party, in 2006, as compared to 2005.

Interest expense was $615,000 for the six months ended June 30, 2006 as compared to $268,000 for the six months ended June 30, 2005. The increase was primarily due to interest paid on borrowings which funded the increased notes receivable from CableTEL mentioned above.

Pursuant to an agreement rescinding the acquisition of CableTEL AD, the Company received a "break up fee" of a $1.5 million participation in a $2.4 million bond. The Company recorded the $1.5 million, net of expenses, as other income in June 2006. The Company also sold its Gaywood Oil & Gas subsidiaries for $1.7 million in June of 2006 and recorded a gain on the sale of $418,000.

CabelTel International Corporation (AMEX:GBR) is a Dallas-based company with investments in a retirement center, gas and oil wells, a North Texas outlet mall and a Bulgarian telecommunications company. For more information, go to the Company's website at www.cabeltel.us.

Certain statements in this media release are forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, Section 27A of the Securities Act of 1933, and Section 21E of the Securities Exchange Act of 1934. The words "estimate," "plan," "intend," "expect," "anticipate," "believe" and similar expressions are intended to identify forward-looking statements. These forward-looking statements are found at various places throughout this Report and in the documents incorporated herein by reference. CabelTel International Corporation disclaims any intention or obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise. Although we believe that our expectations are based upon reasonable assumptions, we can give no assurance that our goals will be achieved. Important factors that could cause our actual results to differ from estimates or projects contained in any forward-looking statements are described under ITEM 1A. RISK FACTORS in the Company's Form 10-K for the fiscal year ended December 31, 2005.

CabelTel International Corporation
                Consolidated Statements of Operations
            (Amounts in thousands, except per share data)

                                       For The Three    For The Six
                                            Month           Month
                                        Period Ended    Period Ended
                                          June 30,        June 30,
                                        2006    2005    2006    2005
                                       ------- ------- ------- -------
                                         (Unaudited)     (Unaudited)
Revenue
    Real estate operations             $1,072  $1,136  $2,222  $2,236
    Oil and gas operations                541     396     995     810
                                       --------------- ------- -------
                                        1,613   1,532   3,217   3,046
                                       --------------- ------- -------

Operating expenses
    Real estate operations                704     770   1,561   1,457
    Oil and gas operations                374     319     780     612
    Lease expense                         238     231     474     462
    Corporate general and
     administrative                       249     268     563     532
                                       ------- ------- ------- -------
                                        1,565   1,588   3,324   3,063
                                       ------- ------- ------- -------

        Operating earnings (loss)          48     (56)   (107)    (17)

Other income (expense)
    Interest income                         5      28     322      68
    Interest expense                     (155)   (133)   (615)   (268)
    Net gain (loss) on sale of assets     418      --     418    (118)
    Other                               1,531      18   1,532      50
                                       ------- ------- ------- -------
                                        1,799     (87)  1,657    (268)
                                       ------- ------- ------- -------

Income (loss) from continuing
 operations                             1,847    (143)  1,550    (285)

(Loss) from discontinued operations        --     (17)     --     (12)

Provision for income taxes                330      --     330      --

Net income (loss) applicable to common
 shares                                $1,517   $(160) $1,220   $(297)

Earnings (loss) per share - basic
    Continuing operations                1.55  $(0.15)  $1.25  $(0.29)
    Discontinued operations                --   (0.01)     --   (0.01)
                                       ------- ------- ------- -------
    Net loss per share                  $1.55  $(0.16)  $1.25  $(0.30)
                                       ------- ------- ------- -------

Basic weighted average common shares      977     977     977     977



                  CabelTel International Corporation
                     Consolidated Balance Sheets
                        (Amounts in thousands)

                                             June 30,    December 31,
Assets                                         2006          2005
                                            (Unaudited)
                                           ------------- -------------

Current assets
    Cash and cash equivalents                      $332          $650
    Accounts receivable-trade                       240           339
    Note receivable                                   6           306
    Other current assets                          1,838           179
                                           ------------- -------------

        Total current assets                      2,416         1,474

Notes receivable net of deferred income           1,809           309

Property and equipment, at cost
    Land and improvements                         2,232         2,232
    Buildings and improvements                    5,304         5,298
    Equipment and furnishings                       302           292
    Proven oil and gas properties (full
     cost method)                                    --         1,401
                                           ------------- -------------
                                                  7,838         9,223
         Less accumulated depreciation and
            depletion                               835           963
                                           ------------- -------------
                                                  7,003         8,260

Deferred tax asset                                  831         1,161

Due from CableTEL AD - related party                 --         8,004

Other assets                                        854           872
                                           ------------- -------------

                                                $12,913       $20,080
                                           ============= =============


                     CabelTel International Corporation
                         Consolidated Balance Sheets
                           (Amounts in thousands)

                                               June 30,   December 31,
Liabilities and Stockholders' equity            2006         2005
                                             (Unaudited)
                                            ------------- ------------

Current liabilities
    Current maturities of long-term debt          $2,486       $2,383
    Accounts payable - trade                         547          842
    Accrued expenses                               1,154        1,236
    Other current liabilities                        414          371
                                            ------------- ------------

        Total current liabilities                  4,601        4,832

Long-term debt                                     6,147       13,560

Other long term liabilities                          193          936
                                            ------------- ------------

        Total liabilities                         10,941       19,328

Stockholders' equity
    Preferred stock, Series B                          1            1
    Preferred stock, Series J 2%                      --        3,150
    Preferred stock, Series J 2% contra
     equity                                           --       (3,150)
    Common stock $.01 par value; authorized,
     4,000,000 shares; 976,955 shares issued
     and outstanding                                  10           10
    Additional paid-in capital                    55,966       55,966
    Accumulated deficit                          (54,005)     (55,225)
                                            ------------- ------------

                                                   1,972          752
                                            ------------- ------------

                                                 $12,913      $20,080
                                            ============= ============