aeroTelesis Receives Confirmation on USM(TM) Prototype Hardware

aeroTelesis Inc. (BULLETIN BOARD: AOTL) and Photron Technologies Ltd. today announced they have started development on prototype hardware for Photron's Ultra Spectral Modulation (USM) technology. The prototype hardware will be implemented in Field-Programmable Gate Arrays (FPGAs), with an Application-Specific Integrated Circuit (ASIC) design to follow later in the year. Developed by Photron and licensed exclusively to aeroTelesis, USM redefines the next generation of wireless communications by providing wireless data transmission at rates of 100bps/Hz (bits per second). Current technologies produce rates of only 4 bps/Hz or less.

Successful end-to-end MATLAB(R) simulations demonstrating USM's ability to transmit data at 5Mbps (megabits per second) through narrow channels of 50KHz has established the feasibility of the core technology.

The successful simulations were the foundation for the all important milestone of completing the critical hardware architecture necessary for the prototype hardware design. This accomplishment could not have been achieved without the use of AccelChip(R) DSP Synthesis and AccelWare(R) DSP cores, which were used to accelerate the development. The USM prototype hardware will use FPGAs to demonstrate USM's ability to transmit data at 5Mbps (megabits per second) through narrow channels of 50KHz. The extraordinary results of the upcoming demonstration will redefine the future of ultra high speed services with substantially increased efficiency. This increase in capacity will enable applications like real-time video and other next- generation wireless services.

Larry Garcia, Technical and Operational Advisor, for aeroTelesis stated, "Our exclusive access to a dynamic wireless technology that produces T3 data rates is definitely the beginning of a new era in communications. Providing such phenomenal rates in a wireless platform with USM allows aeroTelesis to remain at the forefront of next-generation wireless technology services. We applaud the combined efforts and results achieved by Photron and AccelChip. Their expediency in completing a hardware architecture that will ultimately result in producing a USM ASIC will prove to be extremely beneficial for aeroTelesis and the technology marketplace in general."

"We are seeing an explosion in wireless design activity across our customer base. USM is the most exciting approach we have seen to date, and we are pleased to partner with Photron and aeroTelesis in getting USM into hardware," said Vin Ratford, President & CEO, AccelChip. USM 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. This core technology platform is designed to avoid bottlenecks by providing data transmission channels with higher quality and throughput rates than those of conventional modulation techniques.

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). 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/.

About Photron Technologies Ltd.

Headquartered in Singapore and with regional offices in Los Angeles CA, Photron Technologies is a leading-edge wireless technology company specializing in the design, development and integration of next generation wireless transmission methods & techniques, as well as other wireless systems & devices; and is the developer and manufacturer of a proprietary ultra narrowband technology called Ultra Spectral Modulation (USM). For more information on Photron Technologies Ltd., please visit http://www.photron.com.sg/

About AccelChip Inc.

AccelChip Inc. is the industry's only provider of MATLAB-based algorithmic synthesis solutions, including DSP intellectual property (IP), for embedded DSP design. The company develops and markets design tools, integrated verification flows, and parametric IP toolkits that combine to automate the development and implementation of DSP algorithms in FPGAs and ASICs. AccelChip's proven solution integrates the domain-specific DSP design environment (MATLAB) with industry-standard hardware design flows from Aldec, Altera, Cadence, Mentor Graphics, Synplicity, Synopsys, The MathWorks, and Xilinx. Founded in 2000, AccelChip is located in Milpitas, California, and has design centers in Portland, Oregon, and Carlsbad, California. AccelChip's Web address is http://www.accelchip.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 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 10-KSB and 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. http://www.aerotelesis.com/

Contacts:

aeroTelesis Inc. Los Angeles Dawn Smith 310-235-1727 http://www.aerotelesis.com/
Photron Technologies Ltd., Los Angeles USM Info - 310-235-1064 usminfo@photron.com.sg
Jayne Scheckla AccelChip, Inc. 971-204-0150 X240 jayne.scheckla@accelchip.com

Photron is a registered trademark and USM is a trademark of Photron Technologies Ltd. AccelChip, AccelWare, and AccelView are registered trademarks of AccelChip Inc. All other trade names referenced are the service marks, trademarks, or registered trademarks of their respective companies.

aeroTelesis Inc.
CONTACT: Dawn Smith of aeroTelesis Inc., +1-310-235-1727; or Photron
Technologies Ltd., USM Info, +1-310-235-1064, usminfo@photron.com.sg; or Jayne
Scheckla of AccelChip, Inc., +1-971-204-0150 ext. 240,
jayne.scheckla@accelchip.com

Web site: http://www.photron.com.sg/
Web site: http://www.accelchip.com/
Web site: http://www.aerotelesis.com/

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