ChinaTel Group and Chief Telecom Sign Memorandum of Understanding.

IRVINE, Calif. -- ChinaTel Group Inc. (OTCBB:CHTL) ("ChinaTel," or the "Company"), through its controlled subsidiary Trussnet USA Inc., has signed a Memorandum of Understanding ("MOU") with Chief Telecom to strengthen the relationship for the business development opportunities on the CECT-Chinacomm Communication Co. Ltd. Network ("ChinaComm Network").

"Chief Telecom provides telecommunications infrastructure facilities and telecom grade bandwidth exchange services," said William Lu, Director of Internet Data Exchange Centers ("IDC") for Chief Telecom. "Chief Telecom owns and operates Asia Pac Telecom IDC's and Chief Telecom's integrated international telecom infrastructure which can help the ChinaComm Network connect with key local operators and global carriers worldwide. There is tremendous growth from China's wireless broadband market and we are excited to join forces with ChinaTel Group. And, I believe the strength from both parties can help ChinaComm deploy a full network on schedule," added Lu.

Colin Tay, Chairman of the Board of Trussnet USA Inc. and a director of ChinaTel, stated: "Chief Telecom prides itself on its commitment to offer a full range of telecom infrastructure facilities and telecom grade services, which includes its integrated network topology that will fulfill different and essential telecommunication services ChinaTel will need for the build out and operation of the ChinaComm Network. This MOU confirms that Chief Telecom and ChinaTel will work together on this network and each party will provide its respective services to ensure that the network is fully functional and on schedule as provided by ChinaComm".

About Chief Telecom

Chief Telecom was established in January 1991, and as the company grew its business it transformed from the role of a system integrator in the early years, to the largest telecommunications bandwidth wholesaler in Taiwan around 1996, and then became a facility operator of telecommunication centers in 2000. Building on its extensive professional experience in business management for the Internet and value-added services, Chief Telecom provides better ICT solutions with high quality IDC, data, voice, and broadband services to fulfill its client's business goals. For more information, please visit the company website: http://www.chief.com.tw

About ChinaTel Group Inc. (OTCBB: CHTL)

ChinaTel Group Inc. owns Trussnet USA, Inc. ('Trussnet'), a telecommunications infrastructure engineering and construction firm with principal operations in mainland China and that has entered into a partnership with a Wholly Owned Foreign Enterprise (WOFE) in the Peoples Republic of China to build and deploy a 3.5GHz wireless broadband system in up to 29 cities across the PRC with and for CECT-Chinacomm Communications Co., Ltd. For more information visit www.chinatelgroup.com.

Notice regarding forward-looking statements 

This news release may contain forward-looking statements or information. Forward-looking statements or information include statements regarding the expectations and beliefs of management. Forward-looking statements or information include, but are not limited to, statements or information with respect to known or unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements of the Company to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements or information. Forward-looking statements or information are subject to a variety of risks and uncertainties which could cause actual events or results to differ from those reflected in the forward-looking statements or information, including, without limitation, risks and uncertainties relating to obtaining financing to meet the Company's current or future plans and other risks and uncertainties, including those described under "Risk Factors" in the Company's Annual Report on Form 10-KSB which is on file with the Securities and Exchange Commission, as well as the Company's other SEC filings. Should one or more of these risks and uncertainties materialize, or should underlying assumptions prove incorrect, actual results may vary materially from those described in forward-looking statements. Accordingly, readers are advised not to place undue reliance on forward-looking statements or information. The Company does not undertake any obligation to publicly release revisions to any "forward-looking statement," to reflect events or circumstances after the date of this news release, or to reflect the occurrence of unanticipated events, except as is required under applicable securities laws.