To: ms.smartest.person who wrote (10 ) 2/20/2004 3:15:08 PM From: ms.smartest.person Respond to of 130 4/03/02 Koala Announces Successful Test of its KIWI Wireless Communications Device TORONTO, Ontario--April 3, 2002--Koala International Wireless Inc. (OTCBB:KIWI) announced today that Bolton Pass Electronics, Inc., Koala's exclusive development and engineering partner, has produced and successfully tested the developer's prototype version of the KIWI handheld, wireless communications device. David Mackinnon, President and CEO of Bolton Pass, stated, "The KIWI prototype has been loaded with an operating system and we have successfully confirmed its capability for transmitting and receiving email/data through the Internet. We have also demonstrated the KIWI's ability to receive and play audio files in MP3 format as provided for in the KIWI development initiative." Koala is in the final stage of developing the KIWI, a handheld wireless unit that is one of the most advanced personal telecommunications devices in the world. Basic services include instant messaging, Infrared Modem access, email, Internet browsing, office and business tools functionality, MP3 music player and others. The KIWI can be upgraded to a fully capable cellular phone that uses existing cellular networks. It can provide GPS functionality, extended telematics, screen signature capture, bar code recognition and other applications. The Company is currently evaluating a number of path-breaking compression technologies that are designed to enable wireless devices to deliver 2-way video teleconferencing and larger data packet transfer over GPRS or comparable cellular networks. By enabling the Koala Network central server platform to manage the bulk of the unit's memory and processing capability, instead of locating them on the device, the KIWI can be produced and marketed at a price significantly lower than that of its competitors. Michael Johnston, President of Koala, stated, "The delivery of a functional prototype of the KIWI is a significant milestone for Koala and we are pleased that it has been accomplished within the timeframe of our development initiative. The KIWI is now entering the final, pre-manufacturing phase of its development and we are on track to meet our stated business objectives with regard to the commercial rollout of the Koala Network." ABOUT KOALA Koala International Wireless, Inc., has assembled and is integrating a virtual network and applications platform that incorporates state-of-the-art encryption and data compression techniques. The applications platform developed by Koala, enables the KIWI and other wireless devices to access the Internet and other services through Koala's Mobile Virtual Private Network (MVPN). This capability allows Koala to provide network server-based data, voice and video communications, e-Banking, entertainment, information and service applications directly to its targeted subscribers. The Koala Network serves as a fully-enabled MVPN for the KIWI, Koala's state-of-the-art wireless communications device. Koala's MVPN capability uniquely positions the Company to capitalize on several existing and complementary market opportunities including the upgrade of fixed-base (wired) Point of Sale (POS) systems to a more efficient wireless system for the restaurant, hospitality, and entertainment industries, other financial (debit and credit) transaction processing, and entry into the PDA/personal communications device market with the KIWI, a superior product that costs substantially less than other products that are currently available. This material includes forward-looking statements based on management's current reasonable business expectations. In this document, the words "can," "positions," and similar expressions identify certain forward-looking statements. These statements are made in reliance on the Private Securities Litigation Reform Act, Section 27A of the Securities act of 1933, as amended. There are numerous risks and uncertainties that could result in actual results differing materially from expected outcomes. The material should be read in conjunction with the Company's current annual and quarterly reports filed with the SEC, which contain discussions of currently known factors that could significantly impact the Company's future expectations.