'Patented RF/D Technology Will Be Deployed in 3G Phones

ASIA : As a result of an agreement between TechnoConcepts, Inc. ("Techno") and China's largest semiconductor and integrated circuit design conglomerate, China Electronics Corporation, Chinese cell phone owners will be among the first in the world to enjoy seamless roaming, while utilizing the advanced applications capabilities provided in 3G cell phones afforded by multiple service provider connectivity.

3G cell phones incorporating Techno's RF to Digital technology can allow for more robust Multimodal connectivity where users will be able to select from multiple separate network connections with the mobile device - a connection for voice, and a second connection for data, and a third connection for video. Multimodal connectivity will allow users a true anyplace, anywhere, anytime access and let them choose the most suitable form of input and output no matter what the application, including disaster response situations such as the recent Katrina catastrophe.

Under the terms of the agreement, Techno's patented and proprietary technology will be incorporated into 3G mobile phone handsets to be manufactured by CEC's subsidiary corporations. Once into production, TechnoConcepts will receive a licensing fee on each handset manufactured which incorporates its patented RF/D(TM) technology. Techno expects to begin receiving production licensing fees in or around the first calendar quarter of 2007.

It is expected that CEC Wireless ("CECW") and/or Great Wall Computer will manufacture the 3G handsets. CECW is a mobile handset design and manufacturing subsidiary of CEC which has already completed the design of a 3G mobile handset. Great Wall Group recently announced it will merge with CEC, which according to estimates by industry analysts, would result in CEC having assets of more than US$7.39 billion and aggregate revenue in excess of US$12 billion, making it China's most valuable IT company.

Antonio Turgeon, chairman and CEO of TechnoConcepts, stated, "While our technology has been successfully demonstrated for major electronics manufacturers in both China and South Korea, this agreement with CEC marks a significant milestone for Techno as it is the first agreement which calls for our technology to be incorporated into a consumer device for large scale distribution."

Mr. Turgeon continued, "We believe our technology will ultimately be incorporated in numerous communication applications and devices to be manufactured and distributed by many of the world's largest companies to be used by millions of people all over the world. But today's announcement is in many ways is a 'bull's-eye' for Techno. It is for deployment of our technology in the largest vertical market (cellular phones) we have identified, by the largest IT Company in China, in the largest market (China) in the world. There is no mistaking that China is the growth engine for telecommunications and 3G technologies. Estimates are that China adds approximately five million mobile-phone users each month."

China is among the world's largest markets for cell phones. According to an August 31, 2005 report posted online by Electronic Engineering Times, "China is home to 350 million cell phone subscribers, with the total expected to reach 600 million in four years." The report also quotes an executive vice president from Phillips Semiconductors as stating that he believes China will become the leader in defining consumer electronics trends in the coming years.

TechnoConcepts' recent demonstrations in Asia of its RF to Digital technology (based upon its patented RF/D(TM) direct conversion process) demonstrated interoperability between differing communications frequencies, an accomplishment that was impossible to achieve utilizing a single receiver until now. In the demonstration, a single receiver chip using only software, with no other analog front-end filter or circuitry, was able to receive, translate and process different remote signals between 450MHz and 1.2 GHz, including a walkie talkie operating at 465 MHz.

Techno's RF to Digital technology on a single wireless receiver was shown to communicate directly with different devices on multiple frequency bands, using only software to receive translate and process the different wireless signals. With Techno's technology, the flexibility to communicate with and among different frequencies (and devices) is virtually unlimited.

Applications for the company's technology include: cellular base stations, consumer devices such as cellular phones, television, HDTV, IPTV Set-top boxes as well as government uses such as public safety and emergency response. TechnoConcepts, Inc. (OTCBB: TCPS) (http://www.technoconcepts.com) is a developer of a patented and proprietary, ground-breaking technology that uses software to convert radio frequency signals directly into digital, and vice versa, thereby replacing currently used conventional analog front-end signal processing circuitry. Today's announcement marks the first deployment of Techno's RF to Digital technology in high-volume consumer devices.

China Electronics Corporation ("CEC") (http://www.cec.com.cn/cecchannel/english/index.asp) is China's largest semiconductor and integrated circuit design conglomerate. CEC currently manages 16 wholly-funded subsidiaries, 30 share-holding companies, 2 overseas operations and 6 listed companies, with total assets of approximately $4.9 billion and approximately 34,000 employees. The members of the CEC Group are actively engaged in all key aspects of the production and supply chain in the mobile phone industry - covering R&D, production, distribution, repair and maintenance and sourcing of parts and components of cell phones. In 2004, the CEC Group sold over 20 million cell phones.