Teleconnect Inc. Signs Agreement with Verizon Business in Spain to Offer International Calling Using Toll-Free Access Numbers from Europe and USA; Service Expansion Expected to Generate Significant Revenue for 2006.

MADRID, Spain -- Teleconnect, Inc. (OTCBB:TLCO) announced today that it has closed an agreement whereby Verizon will provide Teleconnect with International toll-free numbers from Italy, Ireland, Germany, France, Holland, United Kingdom, and the United States of America. The service is scheduled to be operational by the end of April.

Teleconnect Inc. President, Gustavo Gomez explains, "This significant agreement will allow Teleconnect to offer its customers traveling abroad to inexpensively call internationally using the same Teleconnect Prepaid Card which they purchased in Spain; thus saving them the time and effort of having to find a local calling card. This is the first step to beginning the international distribution of our products for residents of other countries. Having access from the USA for our service was key to the agreement. We expect that the following quarters' revenue will reflect the additional market addressed with this service."

About Teleconnect:

Teleconnect Inc. through its wholly-owned subsidiary Teleconnect Comunicaciones S.A., a Spanish telecommunications company, is a major player in the prepaid telecoms industry in Spain. Teleconnect Inc. is traded on a U.S. stock exchange, the Over The Counter Bulletin Board (OTCBB) with trading symbol TLCO. Teleconnect provides commercial and residential users in Spain with a very competitive array of prepaid services. www.teleconnect.es

About Verizon Business:

Verizon Communications Inc. (NYSE:VZ) provides broadband and other communication services to wireline and wireless customers worldwide. The company provides long distance services, customer premises equipment distribution, data solutions and systems integration, Internet access services, and inventory management services. Its international presence includes wireline and wireless communications operations and investments, primarily in the Americas and Europe. The company was incorporated in 1983 under the name Bell Atlantic Corporation. It changed its name to Verizon Communications, Inc. in 2000. Verizon is based in New York City. Verizon Business was formed after the fusion between Version Communications and MCI and is focused as a Telecommuniactions Service Provider for the Corporate market.

Forward Looking Statements:

Except for the historical information contained herein, the statements in this press release are forward-looking statements that involve risks and uncertainties. Potential risks and uncertainties include, without limitation, continued competitive pressures in the marketplace; the effect competitive and economic factors and the Company's reaction to them may have on consumer and business buying decisions with respect to the Company's products; the ability of the Company to make timely delivery of new products and successful technological innovations to the marketplace; the continued availability of certain components and services essential to the Company's business currently obtained by the Company from sole or limited sources. More information on potential factors that could affect the Company's financial results is included from time to time in the Company's public reports filed with the SEC.