Monday, February 12, 2007

Axesstel to Develop HSUPA and EDGE Devices Designed to Drive Operator Revenue and Address Emerging and Developed Markets

- MU430 HSUPA Gateway and EDGE/HSUPA USB Modems Provide Operators with Fixed and Mobile Broadband Solutions to Increase ARPU and Capture New Markets -
- Exhibiting 3G Gateways and USB Modems at 3GSM World Congress in Barcelona -

Axesstel, Inc., a leader in the design and development of fixed wireless voice and broadband data products, today at the 3GSM World Congress announced it will develop the MU430 3G Gateway for high-speed uplink packet access (HSUPA) networks and portable USB modems for HSUPA and enhanced data rates for GSM evolution (EDGE) networks. Axesstel will exhibit its 3G gateways and USB modems at 3GSM World Congress being held in Barcelona, Spain, February 12 - 15, 2007.

The MU430 3G Gateway provides operators with one device that aids in increasing average revenue per unit (ARPU) from data services while enabling them to capture market share from fixed line operators in residential, small office/home office (SOHO) and vertical markets.

The versatile the HSUPA and EDGE USB modems allow operators to increase ARPU while providing subscribers the flexibility of voice and broadband data access from the home or office and while working remotely or traveling.

"Operators worldwide are striving to compete more effectively, increase profitability and more fully leverage their broadband network investments. Our new HSUPA and EDGE devices provide operators with solutions that drive ARPU and enable them to gain market share in a number of markets that are either untapped or dominated by fixed line operators," said Marv Tseu, chief executive officer for Axesstel, Inc. "The new 3G gateway and USB modems will be engineered to address emerging and developed market demands and designed with efficiencies that result in competitively priced, quality broadband data solutions.

"Entering HSUPA and EDGE markets will allow us to further diversify our broadband product portfolio and expand our addressable markets while providing our operator customers worldwide with solutions that enable them to meet strategic objectives," Tseu added.

The MU430 provides networking of multiple desktop and laptop PCs and Wi-Fi enabled devices. Allowing wireless broadband data access at speeds up to 7.2 megabits per second (Mbps), the MU430 offers a superior alternative to dial-up, integrated services digital network (ISDN) or DSL connections.

The small and portable HSUPA and EDGE USB modems provide consumers and mobile professionals with access to voice calling, email, the Internet and large files at speeds up to 7.2 Mbps on HSUPA and up to 236.8 kilobits per second (kbps) on quad-band (850, 900, 1800 and 1900 MHz) EDGE networks.

"This is the start of a new family of products that will help Axesstel serve a market place we have only partially served before," said Murray Kawchuk, senior vice president of sales and corporate marketing. "This family puts Axesstel in the forefront of wireless data solutions on a global scale. We are very pleased with the rapid development of these platforms, but more importantly, our lead customers are excited to have us bring some innovation to the HSUPA market."

The MU430 gateway will leverage HSUPA networks and be backward compatible to universal mobile telecommunications system (UMTS), EDGE, and general packet radio service (GPRS) networks to provide broadband access to email, the Internet, data intensive photos and graphics, and multi-media streaming. Integrated with an 802.11 b/g Wi-Fi router, the MU430 offers wireless broadband data connectivity from any room in a home or office. As a broadband mobile hotspot, the MU430 enables a variety of applications in small business, enterprise, retail, lodging, public transportation, emergency response and other vertical market environments. Without software drivers to install, a four port Ethernet (RJ-45) router provides plug-and-play access to broadband data. A backup battery allows wire-free access from virtually any room, office or environment.

The HSUPA and EDGE USB modems will be backward compatible to provide connectivity to networks worldwide, allowing mobile professionals to stay productive virtually anywhere, at any time. Additional features of the modems include voice calling, and text messaging, personal information management functionality, MS Outlook® phonebook synchronization and compatibility with virtual private networks for secure data transmissions.

HSUPA is expected to be deployed in most major markets worldwide. The Global mobile Suppliers Association (GSA) states that, as of November 2006, there were 156 commercial GSM/EDGE networks in 92 countries (source: www.gsacom.com).

Test units for some of the new devices are anticipated to be available in early third quarter 2007.

For more information on the MU430 and HSUPA/EDGE USB modems visit, www.axesstel.com or Axesstel's virtual press office (VPO) for 3GSM World Congress at: http://www.virtualpressoffice.com/presskit/index.jsp?showId=1152106483 649&companyId=1170709803360 (Due to its length, this URL may need to be copied/pasted into your Internet browser's address field. Remove the extra space if one exists.)

AXESSTEL AT 3GSM WORLD CONGRESS

Axesstel will exhibit its 3G gateways and USB modems along with its other fixed wireless phones, voice/data terminals, and broadband modems at stand 2.1F45 located in Hall 2, Level 1 at 3GSM World Congress being held February 12 - 15 at Fira de Barcelona - Montjuic in Barcelona, Spain.

NOTES FOR EDITORS AND ANALYSTS

Senior Axesstel executives will be available at 3GSM World Congress to offer comment on:

- Global market demand for fixed and mobile broadband data access

- Advantages of fixed and mobile wireless broadband data access

- Successful business models and applications for fixed wireless voice and broadband data

- Convergence of voice & data, land-line and wireless technology and WLAN/WWAN networking

- Axesstel's new USB modems, 3G gateways, fixed wireless phones and product roadmap

To set up a briefing, please contact:

Kim K. Haneke
Axesstel, Inc.
+1 858-228-7249 or +34 687 539 084 during 3GSM World Congress
khaneke@axesstel.com

ABOUT AXESSTEL, INC.

Axesstel (AMEX: AFT - News) is a leader in the design and development of fixed wireless voice and broadband data products. Axesstel's product portfolio includes fixed wireless desktop phones, public call office phones, voice/data terminals, fixed and mobile broadband modems and 3G gateways for access to voice calling and high-speed data services. The company delivers innovative wireless solutions to leading telecommunications operators and distributors worldwide. Axesstel is headquartered in San Diego, California and has a research and development center in Seoul, South Korea. For more information on Axesstel, visit www.axesstel.com.

© 2007 Axesstel, Inc. All rights reserved. The Axesstel logo is a trademark of Axesstel, Inc.

"Safe Harbor" Statement under the Private Securities Litigation Reform Act of 1995: With the exception of historical information, the statements set forth above include forward-looking statements relating to market penetration and conditions, product capabilities and the timing of new product introductions which may affect future results and the future viability of Axesstel. Axesstel wishes to caution readers that actual results could differ materially from those suggested by the forward-looking statements due to risks and uncertainties and a number of important risk factors. Those factors include but are not limited to unforeseen manufacturing difficulties, unanticipated component shortages, competitive pricing pressures and the risk factors noted in Axesstel's filings with the Securities and Exchange Commission, such as the rapidly changing nature of technology and frequent introductions of new products and enhancements by competitors; the competitive nature of the markets for Axesstel's products; product and customer mix, Axesstel's need to gain market acceptance for its products; the risks of primary dependence on one large customer; potential intellectual property-related litigation; Axesstel's need to attract and retain skilled personnel; and Axesstel's primary reliance on its sole contract manufacturer. All forward-looking statements are qualified in their entirety by this cautionary statement, and Axesstel undertakes no obligation to revise or update this press release to reflect events or circumstances occurring after this press release.


Contact:

Company PR Contact:
Axesstel, Inc.
Kim K. Haneke, +1 858-228-7249 or +34 687 539 084
khaneke@axesstel.com
or
Investor Relations Contacts:
Lippert / Heilshorn & Associates
Kirsten Chapman, +1 415-433-3777
kchapman@lhai.com

Source: Axesstel, Inc.

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