Contec and Beijing Xiejin to support Mobile Data Launch for Chinas Second Largest Operator

North American wireless company, Contec Innovations, in collaboration with international partners, will bring next-generation location-based services to customers of Chinas second largest mobile operators, China Unicom. China has surpassed all other nations in cell phone use and is currently at 221.5 million users with just over 5 million new customers subscribing every month.

VANCOUVER, British Columbia (PRWEB) May 8, 2003 -- Contec Innovations (TSX-V:BUZ) today announced that it has entered into an agreement with Beijing Xiejin Technologies to support the launch of U-Map" mobile data services for Chinas second largest mobile operator, China Unicom. Initial phases call for Contec to provide a Hornet mobile application server and integration services to Beijing Xiejin as infrastructure support for Unicoms location-based services. U-Map" trials are being planned in major cities such as Shanghai and Beijing and a nationwide launch of the location-based services is expected late in 2003. Contec engineering personnel are now working with Beijing Xiejin staff to prepare for application deployment.

We are pleased that Hornet was chosen to support the launch of these advanced data services in one of the fastest growing and most exciting markets," said Perry Quan, Contecs President & CEO. This is an excellent opportunity for us with significant long-term potential. It will demonstrate that Hornet is the ideal solution for large mobile operators delivering critical applications to millions of subscribers."

China is the worlds largest mobile market with approximately 220 million subscribers and an additional 5 million being added each month. The countrys two major mobile operators have adopted revenue-sharing business models that encourage the development of innovative data applications and lead to increased cell phone usage. According to CCID, Chinas leading IT research firm, growth in mobile data usage is expected to exceed 100% annually for several years.

China Unicom is currently rolling out New Horizon", a high-speed CDMA 1X-based 2.5G mobile network. With the new network, China Unicom is launching U-Max", a rich set of data services. Using Qualcomms advanced gpsOne positioning technology; the U-Map" mapping application will provide downloadable colour navigation maps to handsets and other mobile devices. Unicom Guomai, a major listed subsidiary of China Unicom, has teamed with Beijing Xiejin and Japan-based Navitime, a world-leading mobile mapping and location provider to support delivering U-Map" to China Unicoms subscribers. Additionally, Contec has also agreed with Beijing Xiejin to propose other revenue generating applications for trial with Unicom Guomai on the Hornet platform.

About Contec Innovations Inc.
Contec accelerates the growth of the mobile Internet by providing mobile operators with intelligent tools that enable them to capitalize on new data services. Contecs core product, the Hornet, is an open, carrier-class mobile application server capable of hosting multiple applications in a secure, scalable environment. With the Hornet, operators can generate new revenues by efficiently deploying reliable and compelling data applications. www.contec.ca

About Beijing Xiejin Technologies
Beijing Xiejin Technologies is an emerging China-based mobile data value added service provider. Beijing Xiejin has a cooperative agreement with Unicom Guomai and Japan-based Navitime, a world-leading mobile mapping location-based application provider to deliver application support of China Unicoms U-Map" mobile mapping service. www.PDAger.com

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The TSX Venture Exchange has not reviewed and does not accept responsibility for the adequacy of the content of the information contained herein. The statement made in this press release may contain certain forward-looking statements that involve a number of risks and uncertainties. Actual events or results may differ from the Companys expectations.

For more information, please contact:
Loa FridfinnsonInvestor Relations604-609-6170 telir@contec.ca   

Asa Zanatta Media Relations604-408-1389 telazanatta@spiritcommunications.ca