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Telenetics Establishes Operations in China -- Opens
Beijing Office
LAKE FOREST, Calif.--(BUSINESS WIRE)--June 9, 1999--Telenetics Corporation (OTC BB:TLNT - news) announced
today that it has opened an office in Beijing to support its growing activities in China.
The Company has named Tim C. Fu Area Manager for China. Fu comes to Telenetics with 20 years of solid sales background
in China heavily concentrated in the data communications industry. Prior to joining Telenetics, Fu served as Senior Sales
Manager of the Beijing office of Virginia-based Newbridge Networks, Inc. (NYSE:NN - news).
Elaborating on the announcement, Michael Armani, Telenetics' Chairman and Chief Executive Officer stated, ''Opening a
Beijing sales office is a natural step in our current marketing strategy for China. Over the last 18 months we have been building
upon our relationship with China Light & Power and have begun to establish product recognition within the utilities and the
industrial automation and transportation industries. As a result, we have developed exploratory relationships with several
electric utility firms in China. In addition, we are working with the Shenzhen Postal Bureau on a project involving Telenetics'
industrial modems. This project would streamline its postal information tracking system and could readily expand to other major
cities in China.''
In May of last year, Telenetics was selected by GE Harris Energy Systems and China Light & Power (CLP) to provide a
specially designed Digital Fast Poll Modem for a distribution automation project in Hong Kong, the largest of its kind in South
East Asia. The first phase of the project involves 6,500 units of GE Harris' RTU's. Subsequently, GE Harris selected Telenetics
as the sole supplier of Digital Fast Poll Modems for its RTUs. This project is widely viewed by the industry as a pioneering
project for Utility Automation throughout China.
Currently, Telenetics has shipped more than 3,700 units of the custom designed proprietary Fast Poll Modems to GE Harris for
the CLP project.
Telenetics is a leader in the design and manufacture of proprietary data-communications solutions for utility and industrial
automation applications. Telenetics is a pioneer in providing communications solutions to major manufacturers of meters,
RTU's, controls and measurement devices. Telenetics also manufactures two uniquely designed automatic meter reading
solutions using cellular networks: OMEGA(TM) and AirWave(TM). While OMEGA(TM) is designed for the commercial and
industrial meter reading applications where large amount of data are transferred and polled, AirWave(TM) is designed to be
installed inside residential meters with smaller size data transfer requirements. AirWave(TM) is specifically designed for hard to
reach meters.
Alabama Power to Install & Test Telenetics' AirWave
for Automatic Meter Reading
LAKE FOREST, Calif.--(BUSINESS WIRE)--June 8, 1999--Telenetics Corp. (OTC BB:TLNT - news) Tuesday
announced that Alabama Power has agreed to beta test Telenetics' newly released AirWave(TM) cellular automatic meter
reading (AMR) modules at 200 hard-to-reach residential meter sites.
Upon the successful conclusion of the test, Alabama Power, which provides electricity to nearly 1.3 million users in the southern
two-thirds of the state, has indicated its intention to install AirWave(TM) in thousands of hard-to-reach residential meters. Ten
to fifteen percent of the approximately 290 million utility meters in North America are categorized as hard-to-reach.
The AirWave(TM) cellular communications module fits inside a utility meter or other remote monitoring or data acquisition
device. Used in conjunction with Cellemetry® Data Services, a patented communications technology originally developed by
Bell South,
AirWave(TM) provides reliable, low cost, two-way communications to monitor or read equipment such as hard-to-reach utility
meters and remote control and measurement devices. AirWave(TM) incorporates a patent pending antenna inside the meter.
The Airwave(TM) solution reads meters as frequently as the energy provider desires and reports meter tampering and power
outage detection.
Alabama Power is one of five U.S. utilities operated by Southern Company (NYSE:SO - news), the nation's largest producer
of electricity.
Telenetics is a leader in the design and manufacture of proprietary data-communications solutions for utility and industrial
automation applications. Telenetics is a pioneer in providing communications solutions to major manufacturers of meters,
RTU's, controls and measurement devices.
With the introduction of Omega(TM) automatic meter reading cabinets and subsequent $6.8 million contract with Duquesne
Light Company of Pittsburgh (Nasdaq:DQE - news) in 1998, Telenetics introduced a unique cellular solution for commercial
and industrial meter reading automation. While Omega is intended for the commercial and industrial meter reading applications
where large amount of data is transferred and polled, AirWave(TM) is designed to be installed inside residential meters with
smaller size data transfer. It is specifically designed for hard to reach meters.
Telenetics' Chairman Tells Shareholders That
Significant Opportunities Await Company in the
Growing Automation Market
LAKE FOREST, Calif.--(BUSINESS WIRE)--June 8, 1999--Telenetics Corp.'s (OTC BB:TLNT - news) chairman and
chief executive officer, Michael A. Armani, told shareholders at the company's annual meeting on Friday that, ''The company is
in the best business and financial condition it has been since I joined Telenetics in 1993,'' and that the company, ''is standing at
the doorstep of significant new opportunities in the utilities, transportation and industrial automation markets.''
Armani cited Telenetics' success and rapid growth, increasing revenues, improving profit margins and ability to assimilate the
operational challenges associated with the rapid ramp-up in production. ''In the past twelve months we have taken the steps
necessary to position ourselves for future growth -- we have expanded our management team, strengthened our financial base
and increased our technology and product offerings.''
In reviewing the company's growth in the past 12 months, Armani told shareholders that, ''Telenetics has experienced a
significant and continued growth and the trend seems to be gaining momentum. Although a large portion of our growth was
fueled by orders from our top five customers, we have been successful in expanding our customer base to its present level of
more than 120 by adding approximately 10 new customers each month.
''On the financial side, we are healthier than we have ever been. The company's continued growth has enabled us to raise
approximately $1.7 million in net proceeds in two private offerings, and secure a $3 million bank line of credit in the last six
months. And now we have a CFO to manage our financial growth.''
Armani applauded the company's engineering team in ''playing a vital role in positioning Telenetics to become a major
contender in the multi-million dollar AMR market. Our OMEGA(TM) automatic meter reading (AMR) system has been a
smashing success. Since its introduction in September of last year, we have shipped over $5.5 million in OMEGA(TM) to
several major utilities. The introduction of the AirWave(TM) cellular AMR module has pushed us to the forefront of remote
monitoring solution. In the short three months since we have introduced this solution, we have utility and transportation
customers in Alabama, California, Pennsylvania and North Carolina.''
Armani announced to the shareholders the pending acquisition of the assets of GDI that has been initiated and is expected to
close by June 30. ''We are expanding to new markets that are closely related to our core expertise. This acquisition of a
leading supplier of communications and network products and services to the Traffic Management Industry expands our role as
a technology leader in yet another segment of the Industrial Automation Market,'' said Armani.
Telenetics Reports First Quarter Results
LAKE FOREST, Calif.--(BUSINESS WIRE)--April 23, 1999--Telenetics Corp. (OTC
BB:TLNT - news) Friday announced financial results for the first quarter ended March 31,
1999.
For the three-month period, the company reported net sales of $3,836,000 as compared with net sales of $960,000 for the
three-month period ended March 31, 1998. The company reported net income of $400,386 for the first quarter as compared
with net income of $44,400 for the three-month period ended March 31, 1998.
Michael A. Armani, chairman and chief executive officer of Telenetics, stated that, ''The substantial increase in net sales reflects
a broadening of our customer base and growing acceptance of our new product offerings. We are pleased to have been able to
achieve record earnings while dealing with the operational challenges associated with such a rapid ramp-up in production.
''We believe that our performance during the second quarter of 1999 will continue to reflect our growth. The recently obtained
$3 million line of credit and $1.1 million in equity funding, will enable us to support our growth and improve our margins.
''We begin our second quarter with approximately $4 million in backlog and additional $3 million in pending orders. New
market opportunities are helping to establish Telenetics as a major provider of data communications solution for the rapidly
growing utility & industrial automation markets.''
Telenetics is a leader in the design and manufacture of proprietary data-communications solutions for utility and industrial
automation applications. Telenetics offers a broad range of industrial grade dial-up and leased-line modems, cellular modems,
fiber optic line drivers and wireless automated meter reading products.
Forward Looking Statement Disclosure: Certain of the statements contained in this news release are ''forward-looking
statements'' that involve risks and uncertainties. Actual future results could differ materially from these statements. Factors that
could cause or contribute to such differences include but are not limited to, increased competition within the utility and industrial
automation markets, the inability of the company to fund its expected continued growth and those discussed in the company's
Form 10-KSB for the year ended Dec. 31, 1998.
For more information, visit www.Telenetics.com.
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