Smartel Communications Corp. Announces Letter of Intent.

TORONTO--(BUSINESS WIRE)--March 25, 1996--SMARTEL COMMUNICATIONS (NASDAQ: STCCF)--Smartel Communications Corp. ("Smartel/the Company") of Mississauga Ontario, Canada, today announced that it has entered into a Letter of Intent for the acquisition of a major European developer of specialized, multiple-user, subscriber management and billing software for the cellular and telecommunications industry world-wide.

The acquisition is subject to the completion of due diligence already underway, with a final closing currently contemplated for June 30, 1996.

On completion of this acquisition, the company will have a foundation of 27 installations in 8 countries on 3 continents, counting among its clients many of the world's largest mobile telecommunications companies and managing and billing almost 1,000,000 subscribers monthly with aggregate client billings of over US$1.0 billion annually.

The modular and flexible nature of this and the company's software systems have applications not only in the cellular and telecommunications markets, but also in a vast array of other industries as well. Applications exist in virtually every industry where the management, control and billing of large numbers of subscribers and users, each making frequent calls or "hits" on the system, is critical. This includes such rapidly expanding markets such as Internet Service Provision, Pay TV, and public utilities billing.

Smartel presently has its own proprietary subscriber billing and management system designed for analogue and digital providers of cellular telephone services. The company develops and licenses this product through its wholly-owned subsidiary, Billing Management Systems Ltd. of London, England and Edinburgh, Scotland. The planned acquisition, when completed, will immediately add network management system capabilities to the existing product line, and will extend and significantly strengthen the Company's technical and marketing capabilities, as well as its customer support infra-structure, thus making it a world leader in this field.

Smartel will then be ideally poised to implement its planned marketing strategy and aggressively expand its base, not only in the huge emerging cellular and mobile communications markets in Asia and South America, but into the newly opening Personal Communications Systems ("PCS") and digital communications market in North America as well. The USA, through the recent auctioning of approximately 1,900 new digital network licenses, is now introducing PCS and GSM-digital cellular systems on an aggressive basis, each of whose licensees will require a sophisticated and comprehensive multi-subscriber, billing and network management system.

Smartel Communications Corp. is traded and quoted on NASDAQ, trading symbol STCCF.

CONTACT: Smartel Communications Corp.

Shareholder Relations, 905/890-6340