Neotel acquires Tenth Power Technologies with two new products and its leading software development team.

    TSX Venture Exchange Trading Symbol - NIT
    35,583,829 shares outstanding

    MARKHAM, ON, Oct. 12 /CNW/ - Neotel International Inc. ("Neotel")
announces it has reached an agreement in principal to acquire a 100% of Tenth
Power Technologies Inc ("Tenth Power Tech"). Tenth Power Tech is leading
provider of application development services and products. The transaction is
at arm's length, and is expected to formally close on or before November 1,
    The total purchase price is $900,000, payable in Neotel stock at a value
of $0.125 per share, payable on closing for a total of 7,200,000 shares. Tenth
Power Tech will change its fiscal year end to match Neotel's at January 31.
    The principals of Tenth Power Tech have agreed to subscribe to a private
placement of 3,125,000 Neotel common shares at a price of $0.08 per unit. Each
unit entitles the holder to one common share plus a warrant to buy another
common share at a price of $0.13 per share at any time in the next two years.
$150,000 of the private placement will be due upon closing, the remaining
amount 30 days after closing.
    Neotel has been working closely with Tenth Power Tech for a number of
months now. They have been the exclusive software developers to enable our
SignIN product, to be used in time management applications, and SignHere for a
number of new applications as well. The SignHere product is a tremendous fit
with Tenth Power Tech's LANUX and Fundamentals products. This acquisition was
a natural for Neotel. As a result Neotel has greater depth, industry leading
software development resources, and two new innovative products that have
significant synergy with Neotel's existing products.
    Tenth Power Technologies Inc. is an innovative information technology
company focused on design, development and implementation of complete IT
solutions. It is a strategic supplier to companies like Lexmark and Novell
globally. As a Novell "Gold Partner" specializing in LINUX and open source
technologies, Tenth Power has developed very deep skills and expertise. This
focus on LINUX and open source applications has lead to the development of
LANUX(TM). The LANUX(TM) Framework allows "Command and Control" of multiple
Linux servers from a Central point. Tenth Power Tech has partnered with Seneca
College on the promotion of LANUX(TM) as a new open source project and
incorporated it into its course curriculum. Tenth Power Tech has developed a
second product which streamlines and enhances "initiative management," called
Fundamentals(TM). Fundamentals(TM) simplifies the processes of aligning, and
managing multiple people and parties for projects and complex multi-party
tasks. Core to Fundamentals(TM) is the ease with which initiates and projects
can be reported on in real time through customizable dashboard's which can
reflect each individual's priorities and business measures. Fundamentals(TM)
will be released to the market shortly. Tenth Power Tech's deep skill in .Net
and JAVA, have lead to its intimate involvement in the development of Neotel's
SignIN(TM) and next release of SignHere(TM) dynamic signature verification
    "The synergies between Tenth Power Technologies customers, products and
expertise and Neotel's portfolio of products and services are excellent," says
Mark Edwards President and CEO of Neotel. "There are significant opportunities
through the combination of Fundamentals and SignHere to create focused
business solutions by industry. Tenth's expertise will be essential for the
continued evolution of the SignHere(TM) and Admiral families of solutions,"
says Edwards. "Both companies see real opportunities to leverage our existing
relationships with the combined product and solution portfolios."
    Tenth Power Technologies CEO Dennis Bernhard said, "This acquisition is
about leadership and combining the talents of people. This combination will
enable Tenth's portfolio of customers and solutions to grow and expand
significantly. Working with the Neotel team, we look forward to exploiting
growth opportunities in specific markets and industries." Dennis will remain
on as a Managing Director for Neotel and the Tenth Power Tech portion of the
business. He will assist with strategic development and sales. Dennis will
also join the Board of Director's of "NEOTEL"
    This transaction is subject to regulatory approval


    Neotel is a provider of secure fax, dynamic signature authentication and
other secure solutions to enterprise and government. Neotel offers clients a
portfolio of secure solutions to protect assets, reduce costs, increase
revenues and comply with government and industry regulations. Neotel's dynamic
signature identification solution SignHere allows for electronic signature
capture that is uniquely personal and impossible to forge. Neotel, through its
subsidiary, SecureIT Investigations & Consulting Inc., is a leading provider
of consulting solutions for security, privacy, risk management and compliance
designed to protect and enhance both enterprise and government security and
privacy requirements. Neotel, through its subsidiary, Admiral Secure Products
Ltd., is a leading provider of secure fax devices designed to protect
sensitive facsimile communications from inadvertent or intentional disclosure.
    Additional information about Neotel is available at


    Tenth Power Technologies Inc. is an innovative information technology
company focused on design, development and implementation of complete IT
solutions. It is a strategic supplier to companies like Lexmark and Novel
globally. Its product solutions include; The LANUX(TM) Framework enabling
allows Command and Control of multiple Linux servers from a Central point; and
"Fundamentals(TM)" an initiative management system simplifying the processes
of aligning, managing and reporting complex multi-party projects. Its
customers include companies like Lexmark & Novell.
    Additional information about Tenth Power Technologies is available at

    The TSX Venture Exchange does not accept responsibility for the adequacy
    or accuracy of this release.

    %SEDAR: 00009136E

For further information:

For further information: Neotel: Maureen Espin, (905) 948-9229 x28;
Tenth Power Technologies: Dennis Bernhard, (416) 920-2010

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Tenth Power Technologies Corp.

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