PORTLAND, Ore., Oct. 14, 2004 (PRIMEZONE) -- Nettel Holdings Inc., (OTCBB:NTTL) Berlin and Frankfurt Stock Exchanges (NT7, WKN 727487 releases CEO Letter updating progress report.
Dear Valued Shareholders:
Over the past three months our company has gone through a great deal of expansion (and growing pains as well) while launching new products and services, which we began developing earlier in the year. All of our projects are now generating income at various stages of earnings. Strengthening the trust of our investors is very important to me and the company, and I believe this progress report will reflect how Nettel is honestly approaching a variety of projects that require needed flexible strategies.
During my challenging position as CEO of Nettel these past years, I have been repeatedly trying to enlighten and inform skeptics about our potential and bonafide unprocessed orders. These are actual orders, and with our fully automated AVOP and IPXC systems, we will be able to easily handle these large contracts. Each of these orders will earn Nettel 2-5% profit upon completion.
The funding (loan package) that we did not receive during the third quarter -- due to the drop in our stock price -- hindered our progress and delayed us from moving full steam ahead in the process of hiring an adequate management and engineering team to handle our larger orders. Consequently, during the third quarter, management decided the best approach was to concentrate on our new divisions, especially Entec Software. Entec could generate the revenues necessary to support all of these projects. This decision was made after analyzing the new, higher, costs of the financing package as a direct result of the fallen stock prices. We had planned with part of this "new funding" that we would be able to buy back stock on an ongoing basis and had realized at that time how our new subdivisions were showing profit enough to build the AVOP team as well. When our funding did not materialize, we prioritized the projects that were already in place in order to get them off to a good start and operated AVOP for the sake of completing the smaller orders as management and our staff filled in temporarily and is still continuing to do so.
It is my intention to let stockholders know what we are developing and what events have taken place -- positive or negative. Our potential may be difficult for some to believe, however, little by little, the truth is revealing itself as to our good intentions and our realistic views that can and will continue to happen.
Our existing team of over one hundred software engineers and technical writers for Entec Software have recently finished thirty-two major software packages. In addition, over a thousand beta testers have been providing continuous valuable feedback. Nearly all the beta testers have expressed that they would buy our products. Several online software retailers have also expressed this. In view of that, we can very comfortably predict initial revenues for Entec Software products to start out at between one and two million dollars per month by the end of the year. The numbers would continue to grow from then on with a profit range anywhere from 60% to 70%. Our technical writers and programmers will be ready with the needed manuals and brochures to begin marketing on schedule, which is by the way is at the beginning at the beginning of next week. The completed list of software is available online at: http://www.entecretail.com.
As to the revenue outlook, I truly believe that anyone who has invested in Nettel's unique (and daring) strategies should realize by the reports that we have overcome some amazing challenges this year. We have been actively signing up new contracts for AVOP and IPXC, as well as completing smaller orders which will show improvements in our third quarter earnings report. We are now operating in twenty-eight international countries with Sip Zoo, IPTalks, FaxZoo, etc. All of our telecom products are now actively being sold by our international resellers. The list of countries we are in is online at http://www.iptalks.net. We now have over 6,000 subscribers from IPTalks and interest from over 60 major domestic and international marketing companies.
We are now very close to obtaining more than enough funding that will allow this prolific and ingenious company to go faster in every direction than stockholders thought possible. Bear in mind that circumstances change, and that we fully intend to alert all of you every time we see changes coming. Thank you for considering Nettel's position and our confident stand on these issues.
Unlike some of our previous quarterly reports where revenue was generated mainly from exporting surplus equipment, etc.; our third quarter financials (10Q) will show significant growth in revenue and profitability in many areas. Nettel is growing very well overall and we thank you for all your support and comments that have helped us to keep our common goals in mind and on track. This is a very undervalued company and I encourage you to keep watching for dramatic results from this overlooked stock.
In closing, in response to growing inquiries about Nettel Holdings divisions and subsidiaries and their various products and services, we have recently completed updating our online investor forum. The forum offers new and enhanced features that allow investors and customers to ask management questions as well as to enable you to research the company and our many products and services.
Once again, I want to thank you for your continued patience as we strive to develop our company to its full potential.
Sincerely, Michael Nguyen CEO of Nettel Holdings, Inc.
Safe Harbor:
Except for historical information contained herein, the statements in this news release are forward-looking statements that are made pursuant to the safe harbor provisions of the Private Securities Reform Act of 1995. Forward-looking statements involve known and unknown risks and uncertainties, which may cause a company's actual results in the future to differ materially from forecasted results. These risks and uncertainties include, among other things, the company's ability to attract qualified management, raise sufficient capital, and effectively compete against similar companies.