TLCO Teleconnect Inc (CE)

Teleconnect, Inc. (OTCBB:TLCO) announced today that it has signed a Letter of Intent to purchase a majority stake in Star Mobile Solutions SL (SMS); a Spanish mobile phone repair company. Though the terms of the agreement have not yet been released, the acquisition, which is expected to be executed before the end of December 2006, will immediately double Teleconnect�s turnover and bring a positive Net Income contribution to the Company�s consolidated financials. Teleconnect Inc. President, Gustavo Gomez explains, �We have identified SMS as an attractive potential acquisition due to its complementary nature to our expansion strategy and its bottom-line profitability. SMS will allow Teleconnect to start offering value-added services to mobile phone users in line with our business plan. Expanding to other markets will be more attractive if we include in our portfolio mobile prepaid services in addition to our fixed-line prepaid service offering.� About Star Mobile Solutions SL: Star Mobile Solutions SL is a privately held mobile phone repair organization set up in 2002 in Madrid Spain. They have grown exponentially in the market, becoming number 5 of 14 similar companies. SMS has experienced 90% annual growth since inception reaching an estimated 7,8M� turnover by the end of 2006. Today, SMS has over 100 people on staff and 4 locations and require investment to keep up with customer demands for additional service. They plan to again double turnover and profit within the next 2 years. 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 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. Teleconnect, Inc. (OTCBB:TLCO) announced today that it has signed a Letter of Intent to purchase a majority stake in Star Mobile Solutions SL (SMS); a Spanish mobile phone repair company. Though the terms of the agreement have not yet been released, the acquisition, which is expected to be executed before the end of December 2006, will immediately double Teleconnect's turnover and bring a positive Net Income contribution to the Company's consolidated financials. Teleconnect Inc. President, Gustavo Gomez explains, "We have identified SMS as an attractive potential acquisition due to its complementary nature to our expansion strategy and its bottom-line profitability. SMS will allow Teleconnect to start offering value-added services to mobile phone users in line with our business plan. Expanding to other markets will be more attractive if we include in our portfolio mobile prepaid services in addition to our fixed-line prepaid service offering." About Star Mobile Solutions SL: Star Mobile Solutions SL is a privately held mobile phone repair organization set up in 2002 in Madrid Spain. They have grown exponentially in the market, becoming number 5 of 14 similar companies. SMS has experienced 90% annual growth since inception reaching an estimated 7,8M EUR turnover by the end of 2006. Today, SMS has over 100 people on staff and 4 locations and require investment to keep up with customer demands for additional service. They plan to again double turnover and profit within the next 2 years. 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 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.