Reality Wireless Networks Announces Letter of Intent to Acquire $29 Million Diversified Trading Company.

GIG HARBOR, Wash. -- Reality Wireless Networks, Inc. (OTCBB:RWNW) and Arabian Recab Trading Company ("ARTC") jointly announced that they have entered into a letter of intent proposing a merger whereby Reality would issue common stock for all the issued and outstanding shares and interests of ARTC. ARTC (and its predecessor organization) is a 25 year old Saudi Arabian company focused primarily on the transportation industry. For the year ended December 31, 2004, ARTC generated more than 111,750,000 Saudi Riyal (approximately $29 million USD).

ARTC operates four primary divisions:

--Auto & Equipment

--Transportation & Logistics

--Private Transportation (Buses)

--Building Materials & Concrete Products

The Auto & Equipment division imports and sells commercial vehicles from Mercedes Benz (among others), as well as commercial and passenger vehicles manufactured by Toyota, Mitsubishi, Hyundai and Volkswagen. ARTC sells through showroom facilities in Riyadh, Jeddah and Dammam. This division also supplies equipment to fleet owners and private dealers for auto maintenance.

The Transportation and Logistics division (Road Freight, International Freight Forwarding, Bulk Shipments) owns and operates nearly 300 tractor units (and similar equipment). ARTC has significant contracts with major firms such as SABIC, which is a leading global petrochemical company, HADDID, SAFOLA and others to carry goods within Saudi Arabia and throughout the Gulf. Additionally, ARTC has contracts with sole agents of Toyota, Nissan, Mitsubishi and others to transport new vehicles throughout Saudi Arabia and to and from other Arab nations.

The Private Transportation division operates approximately 250 buses (US School type) in Riyadh, Jeddah and Dammam (as well as other locations) under contract for the transportation of students, teachers, defense personnel and government employees.

The Building Materials & Concrete Products division operates concrete ready-mix facilities, cement block making, stone and granite crushing and polishing plants in Jeddah and Mecca.

Steve Careaga, CEO of Reality, stated that, "We are delighted to have the opportunity to engage in a merger with the Arabian Recab Trading Company. The opportunities in transportation, logistics and construction throughout Saudi Arabia and other Gulf states are tremendous. We expect that this merger will enable Reality shareholders to participate in a substantive company in a region and industry that should potentially see incredibly rapid growth over the next decade."

The companies intend that following the closing of the transaction, Reality will change its name to Recab International, Inc. The proposed transaction is subject to customary closing conditions, including approval from Reality's and ARTC's stockholders.

Separately, Reality Wireless Networks, Inc., and PeopleMatter, Inc., agreed to terminate their Letter of Intent, thereby canceling the proposed merger agreement between the parties, effective immediately.

About Reality Wireless Networks Inc.

Reality Wireless Networks, Inc., a publicly-traded Nevada corporation, previously offered broadband wireless services through hybrid networks including fixed wireless, 802.11, and fiber to markets either underserved or not served by DSL and cable modem technologies. Reality has shifted focus to seek growth opportunities in the wireless marketplace and related product industries [e-mail]. More information about Reality Wireless Networks Inc. can be found at www.sec.gov.

NOTE: Information contained in this press release, other than historical information, should be considered forward-looking in nature and is subject to various risks or uncertainties and assumptions. Should one or more of these risks or uncertainties materialize, or should underlying assumptions prove incorrect, actual results may vary materially from those anticipated, estimated or expected. Among the key factors that may have a direct bearing on the operating results, performance or financial condition are the company's ability to achieve and manage growth; the company's ability to successfully identify suitable acquisition candidates, complete acquisitions or integrate the acquired business into its operations; the company's ability to attract and retain qualified personnel; the company's ability to secure necessary financing; potential litigation by shareholders and/or former or current advisors against the company; the company's success in securing third-party commitments, production agreements and/or licensing contracts; the company's ability to comply with federal, state and local government regulations and/or unforeseen changes in federal or and government regulation; and the company's ability to develop new services; and other factors discussed in Reality's filings with the Securities and Exchange Commission.

For further information, please contact Steve Careaga at 253-853-3632, or send correspondence to 4916 Point Fosdick Dr., Suite 102, Gig Harbor, WA 98335