ChinaTel Group, Inc. Signs Strategic Framework Agreement with Runcom Technologies, Ltd.IRVINE, Calif. -- ChinaTel Group, Inc. ("ChinaTel") (OTCBB OTCBB See OTC Bulletin Board (OTCBB). :CHTL) and Runcom Technologies, Ltd. ("Runcom") jointly announced today that they have recently entered into a Strategic Framework Agreement. The Strategic Framework Agreement outlines the proposed strategic relationship between ChinaTel and Runcom as follows: [TABLE OMITTED] Runcom and ChinaTel intend to complete certain initial deployment demonstrations of Runcom's proprietary technology by December 1, 2008. Upon completion of this demonstration, ChinaTel intends to place an order for Runcom equipment to implement in its deployment program. Runcom will provide up to 50% of its investment into ChinaTel in the form of convertible debentures, the exact terms and form of which are presently the subject of discussion between the two parties. Half of Runcom's investment ($50,000,000) will occur on or before November 25, 2008 and the balance within 90 days of the signing of a definitive Stock Purchase Agreement. The balance of the investment is in exchange for shares of Class A Common Stock. The parties are presently negotiating a definitive stock purchase agreement. In the event Runcom is unable to provide some or all of this financing, ChinaTel's sole remedy is to terminate the exclusivity provided to Runcom under the Strategic Framework Agreement, however Runcom shall continue to be a preferred vendor of ChinaTel. Colin Tay, President of ChinaTel, stated: "We are pleased with our recent strategic framework agreement with Runcom Technologies, Ltd. Runcom is a leader in developing enhanced communications services for cellular phones and other mobile devices. The inclusion of the Runcom product line in our PRC deployment, we believe, greatly enhances our competitive position in the Chinese marketplace." About ChinaTel Group, Inc. ChinaTel, through its controlled subsidiaries, provides telecommunications infrastructure engineering and construction services worldwide including the USA, South America South America, fourth largest continent (1991 est. pop. 299,150,000), c.6,880,000 sq mi (17,819,000 sq km), the southern of the two continents of the Western Hemisphere. and China. ChinaTel's subsidiaries have entered into a series of agreements to build and deploy a 3.5GHz wireless broadband High-speed wireless transmission of data. What is "high" speed is always a changing number. Wireless systems are typically slower than land-based, wireline networks. In the past, wireless broadband started at 250 Kbps, whereas land-based broadband was generally considered to start at T1 system in up to 29 cities across the People's Republic People's Republic n. A political organization founded and controlled by a national Communist party. of China with and for CECT-Chinacomm Communications Co., Ltd., a PRC company that holds a license to build the broadband WiMAX system. For more information visit www.chinatelgroup.com. About Runcom Technologies, Ltd. Runcom is headquartered in Rishon Lezion, Israel. Runcom is the leading pioneer of Orthogonal Frequency Division Multiple Access (OFDMA OFDMA Orthogonal Frequency-Division Multiple Access OFDMA Ofdm Access ) technology - an advanced development of OFDM (Orthogonal Frequency Division Multiplexing) A digital transmission technique that uses a large number of carriers spaced apart at slightly different frequencies. . Runcom's multi-carrier OFDMA technology offers better performance over traditional wireless Single Carrier solutions such as Frequency Hopping Multiple Access (FHMA FHMA Frequency Hopping Multiple Access FHMA Family Housing Management Account FHMA Florida Hotel and Motel Association (now Florida Lodging Association) FHMA Frequency Hop Multiple Access ) and Code Division Multiple Access (CDMA (Code Division Multiple Access) A method for transmitting simultaneous signals over a shared portion of the spectrum. The foremost application of CDMA is the digital cellular phone technology from QUALCOMM that operates in the 800 MHz band and 1.9 GHz PCS band. ). The Company's technology is a key enabling multi-carrier technology for: * Beyond 3G cellular applications (mobile Wireless MAN) * Broadband Wireless Access (BWA (Broadband Wireless Access) High-speed wireless access. Typically refers to wireless last mile access to the Internet. See WiMAX and broadband. ) * Next generation Interactive Digital Terrestrial Television Digital Terrestrial Television (DTTV or DTT) is an implementation of digital technology to provide a greater number of channels and/or better quality of picture and sound using aerial broadcasts to a conventional antenna (or aerial) instead of a satellite dish or broadcasting * Future broadband mobile networks For more information visit www.runcom.com. Notice Regarding Forward Looking Statements Any statements contained in this press release that do not describe historical facts may constitute forward-looking statements as that term is defined by the United States Private Securities Litigation Reform Act The Private Securities Litigation Reform Act of 1995 (PSLRA) implemented several significant substantive changes affecting certain cases brought under the federal securities laws, including changes related to pleading, discovery, liability, class representation and awards fees and of 1995. Any such forward-looking statements contained herein are based on current expectations, but are subject to a number of risks and uncertainties that may cause actual results to differ materially from expectations such as material adverse events affecting the company, the ability of the company to satisfy the conditions to completion of the business combination and those other risks and uncertainties detailed in the company's filings with the Securities and Exchange Commission. |
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