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aeroTelesis, Inc. Establishes Strategic Partnership With PT Citra Sari Makmur in Indonesia for the Development of USM Broadband Data and Multimedia Satellite Services

Posted on: Wednesday, 9 March 2005, 09:00 CST

LOS ANGELES, March 9 /PRNewswire-FirstCall/ -- aeroTelesis(TM), Inc. (BULLETIN BOARD: AOTL) announced that it has signed a Memorandum of Understanding (MOU) with PT Citra Sari Makmur ("CSM"), a provider of both domestic and international broadband data, multimedia satellite and terrestrial network services in Indonesia, to develop and implement Ultra Spectral Modulation(TM) (USM) enabled satellite communication services for the Indonesian market.

Through the strategic partnership, aeroTelesis and CSM plan to integrate the USM technology into CSM's existing satellite network services as well as create new, cost effective broadband wireless solutions for the country. Upon the future commercialization of the USM technology, the parties intend to conduct a series of field trials prior to the commercial deployment of USM throughout Indonesia.

With USM's ability to achieve ultra high speed and high capacity wireless communication services, the parties anticipate the following applications:

* Broadband satellite data services for CSM's existing enterprise

clients

* Direct-to-home satellite ISP services for consumers

* Other multimedia satellite and wireless-related applications

"The creation of this second USM satellite partnership in Southeast Asia represents another significant milestone for the Company. Not only have we secured an important foreign partner, but we have also created an opportunity to implement the USM technology in Indonesia, a major international territory with over 230 million people, and to establish greater presence in the satellite broadband services market. This partnership will help facilitate further progress into downstream retail-oriented services, such as broadband internet applications and other multimedia solutions," commented Joseph Gutierrez, President of aeroTelesis.

For aeroTelesis, this new partnership fits well into its strategy to develop new and innovative services based on the USM technology. It also marks the commitment taken by aeroTelesis to join forces with major strategic partners in order to leverage resources and expertise and offer premium services to end customers.

USM is a unique wireless modulation technology that significantly increases spectral efficiency in wireless applications and provides for high-speed and high-capacity networks at substantially lower cost relative to existing wireless technologies. Successful end-to-end MATLAB(R) simulations demonstrating USM's ability to transmit data at 5 Mbps (megabits per second) through narrow channels of 50 KHz has established the feasibility of the core technology. Prototype hardware is now under development and will be implemented in Field-Programmable Gate Arrays (FPGAs), with an Application-Specific Integrated Circuit (ASIC) design to follow later in the year. USM redefines the next generation of wireless communications by providing wireless data transmission rates of 100 bps/Hz (bits per second) in comparison to conventional technologies that produce rates of 4 bps/Hz or less.

About PT Citra Sari Makmur (CSM)

PT Citra Sari Makmur is a public telecommunications network service provider established in Indonesia in 1989. CSM is the first satellite and VSAT public service provider in Indonesia as well as in Asia. The Company provides domestic and international broadband data and multimedia satellite and terrestrial network services in Indonesia with more than 2,500 terminals installed for large and global corporate customers. The Company has a strong customer base in a variety of industries, including banking, oil and energy, distribution, mining, and forestry among others. The Company commands premium pricing with 50% market share among Indonesian public satellite network operators and ranks among the top terrestrial broadband network providers in the country.

About aeroTelesis, Inc.

Headquartered in Los Angeles, aeroTelesis is a technology-driven communications company dedicated to providing next generation communication services and offering its customers a more efficient, cost-effective delivery of voice, data and video services on a global basis. The Company's targeted application markets include Voice over Internet Protocol (VoIP), fixed and mobile wireless broadband, and satellite communications. The Company's core technology platform is an exclusively licensed modulation technique known as Ultra Spectral Modulation (USM)(TM). USM is a technology that significantly increases spectral efficiency in wireless applications and provides for high-speed and high-capacity networks at substantially lower cost relative to existing wireless technologies. USM is designed to avoid bottlenecks by providing data transmission channels with higher quality and throughput rates than those of conventional modulation techniques. For more information on aeroTelesis Inc., please visit http://www.aerotelesis.com/.

Forward Looking Statements

This press release contains forward-looking statements made in reliance upon the safe harbor provisions of the Private Securities Litigation Reform Act of 1995, as amended. Forward-looking statements include, but are not limited to, the Company's growth strategy, future milestones and projected operations. Forward-looking statements are inherently subject to uncertainties and other factors, which could cause actual results to differ materially from the forward-looking statements. These factors and uncertainties include: the Company's ability to develop and commercialize its USM(TM) technology, expand its operations to meet anticipated demand; the ability of the company's technology to achieve anticipated benefits for its customers; ability to secure operating licenses in host countries; anticipated growth of the Company's target markets; unanticipated delays in manufacturing or shipments to customers, and its ability to achieve anticipated sales and profits. The Company refers interested parties to its most recent Annual Report on form 10KSB its other SEC filings for a description of additional uncertainties and the factors that may affect forward-looking statements. Forward-looking statements are based on information presently available to senior management, and the Company has not assumed any duty to update its forward-looking statements.

Contact: Dawn Smith

(310)235-1727

aeroTelesis, Inc.

CONTACT: Dawn Smith of aeroTelesis, Inc., +1-310-235-1727

Web site: http://www.aerotelesis.com/

Source: PRNewswire-FirstCall

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