Technology

Sector Update - Air Touch Inc, (ATCH) Inks Major Deal with Telmex for New Device to Latin America

AirTouch Communications Named Supplier by Telmex for Sales of its SmartLinX™ in Latin America

For a video demonstration of the SmartLinX TM device go to http://www.buycellathome.com/video/SmartLinX-Video-v7.html http://www.AirTouchInc.com

Shipments of SmartLinXTM (U250) to begin in second quarter

Newport Beach, CA May 30, 2012 AirTouch® Communications, Inc. (OTCQB: ATCH) (www.airtouchinc.com), a branded end to end developer and supplier of wireless telecommunications devices, today announced that they have been named an approved vendor of Telefonos de Mexico S A B de CV (Telmex) (BMV: TELMEXL). In connection with being named an approved Telmex vendor, AirTouch received an initial order for sale of the new AirTouch patent pending SmartLinXTM (U250). The product is expected to ship in the second quarter first in Mexico and ultimately throughout Telmex locations in Latin America. The roll out will include 400 Mexico Telmex retail stores, Telmex online stores and on the SNS that Telmex uses to sell their communication equipment at the retail level. In addition, Telmex is expected to use the U250 as a telephone line customer retention tool, as well as ADSL upgrades and for new customer acquisition purposes.

Under the terms of the purchase order 2,000 units will be shipped to selected retail outlets where Telmex marketing programs will be tested for effectiveness and sales associates will be trained on product use. Once the marketing programs are refined and determined to be successful the order calls for 18,000 units to be released.

"AirTouch is very excited to be supplying Telmex with the SmartLinX TM U250. This product was specifically requested by and designed for Telmex, the largest landline carrier in Latin America," said, Hide Kanakubo, CEO of AirTouch. "We are proud to partner with Telmex in bringing communication solutions to their customers and significantly enhancing the benefits of their landline services. We are excited to begin generating sales in the Latin American market and believe this initial purchase order will be the first of many large orders in the future."

After discussions with Mr. Vázquez del Mercado, Executive Vice President for Corporate Development of Telmex Corporation, SA., the engineers at AirTouch created the first in AirTouch's SmartLinX TM product line specifically to meet the needs of Telmex. The SmartLinXTM U250 device easily connects most smart phones to Telmex landline services including PSTN, ADSL, VoIP or Fiber base VoIP. For a video demonstration of the SmartLinX TM device go to

http://www.buycellathome.com/video/SmartLinX-Video-v7.html.

"Telmex has businesses in 19 countries throughout Latin America. Following the introduction of the SmartLinX TM U250 device in Mexico, our intent is to bring this product into each of those markets," said Mr. Vázquez del Mercado. "Telmex currently sells hundreds of thousands of cordless telephones each year. We are confident that the easy to use U250 may eventually lead to replacing cordless phones among a large portion of our broadband and Wi-Fi network customers."

The SmartLinX™ device connects a smartphone to a landline, combining the clarity of a landline with the features of a smartphone, such as using the contact list for making phone calls. SmartLinX™ will allow the user to benefit from receiving landline and cellular calls on the same device and using fewer mobile minutes at home or in the office where the wireless signal is challenged. This product is compatible with all major smart phones.

"We believe this product will be widely accepted by our customers," stated Mr. Vázquez del Mercado. "Though landline use is declining worldwide, the signal quality has yet to be matched by wireless technologies. Additionally, landlines are more secure than a broadband connection for tele-banking and other applications requiring the highest level of security. For these reasons, we are confident that landlines will remain an important piece of our business in the coming years. Allowing mobile phones to work using these landlines will help Telmex find new opportunities for services and revenue," stated Mr. Vázquez del Mercado.