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January 11, 2007 at 08:00 AM EST
Orsus Xelent Announces Cooperation Intent Agreement for 20,000 Handsets From the State Administration for Industry and Commerce (SAIC), Hebei Province of the People's Republic of China (PRC)
Order Launches Planned National Rollout of SAIC Mobile Device Software Platform

Orsus Xelent Technologies, Inc. (OTCBB: ORXT), a designer and manufacturer of award-winning mobile phones for the Asian market, today announced the award of a Cooperation Intent Agreement naming it the primary mobile devices provider for the State Administration for Industry & Commerce (SAIC), Hebei Province of the People's Republic of China. The SAIC in the Hebei Province will provide a handset to each member of its field staff, and anticipates it will procure 20,000 Specialized Application Devices in 2007. Because SAIC Hebei Province has appointed China Unicom Hebei branch the operator for the Specialized Application Devices, ORXT and China Unicom Hebei Procurement Branch also completed procurement contracts for the handsets.

The model X180 mobile phones feature state-of-the-art design and specialized application functions tailored to the specific operational requirements of the SAIC. The X180 features a 2.8-inch TFT touch screen, 1.3 mega pixel CMOS camera, SD Memory Card support, 128MB SRAM, Samsung 400M CPU, WAP 2.0, and CDMA 1x -- packaged in a sleek candy bar style design. Advanced functions, such as voice recording, GPS-One function, electrical compass, and embedded ICEP software are tailored for China's special application users.

The platform utilizes the CDMA 1X wireless data networks of China Unicom to integrate commercial and government information resources. This includes a customized digital administration system for SAIC departments that provides easy access for SAIC's professional law-enforcement teams. It provides technical support for SAIC officials to conduct mobile law-enforcement, commercial tax enforcement, and food safety monitoring. The public can also access useful business information through the ICEP with the proper device for a per use charge.

The SAIC expects the adoption of this new system will be completed within 18 to 20 months, at which time approximately 560,000 SAIC law-enforcement officials will be equipped with these new specialized mobile devices. As the designated main device provider, Orsus Xelent estimates it will deliver more than 300,000 mobile devices to meet SAIC's requirements in less than 18 months. The PRC has mandated that it will no longer provide paper documents for information on companies in China. Information must now be accessed online. Each specialized mobile device (X180) will be priced at $400 US per unit, and requires replacement every two years. China Unicom's Central Procurement Branch has completed the procurement contracts for the handsets with the Hebei Province Administration, and will be responsible for completing the Specialized Application Devices' delivery and the payment of goods.

"Our position as the main provider of devices to the SAIC establishes Orsus Xelent as the nation's leader for specialized application mobile devices. This provides us with a considerable amount of credibility and a significant advantage as we look to expand our business into the larger commercial markets," said Xin Wang, President and CEO of Orsus Xelent.

Hongwei Zhao, Chief Financial Officer of Orsus Xelent, added, "This contract will be a major contributor towards Orsus realizing its goal of significant top line growth while simultaneously expanding operating margins in 2007. We will continue to expand our core business through new domestic sales channels as well as our foreign sales initiative."

About the State Administration for Industry & Commerce (SAIC)

The State Administration for Industry & Commerce (SAIC) of the People's Republic of China is the authority directly under the State Council in charge of market supervision and regulation. It drafts and promulgates guidelines, and enforces policies, laws, rules, and regulations related to public and private industry and commerce. For more information, visit http://www.saic.gov.cn

About China Unicom

China Unicom Company Limited has more than 112 million wireless subscribers, making it the world's second largest CDMA operator, third largest GSM operator, and a leading provider of paging, long-distance, broadband data, and mobile communications services to the People's Republic of China (PRC). The company reported more than $11 billion in sales in 2005, and is traded on the New York Stock Exchange.

About Orsus Xelent Technologies, Inc.

Incorporated in the state of Delaware and headquartered in Beijing, China, Orsus Xelent Technologies, Inc. is an emerging designer and manufacturer of award-winning mobile phones for the Asian market, primarily the People's Republic of China (PRC). The company's business encompasses the design of mobile phones, related digital circuits, and software development, and it is a recognized pioneer in mobile phone integration technology. It introduced the region's first wristwatch-style cellular phone, and it continues to break new ground with state-of-the-art phones that include advanced features such as finger print recognition and touch-screen displays. Since the company's launch in 2004, it has established "Orsus" as a popular brand and achieved a significant share of the world's largest mobile phone market. It maintains more than 179 service call centers across the PRC, with additional offices in New York, Shanghai, Hong Kong, Shenzhen, and Tianjin. For more information, please visit the company's web site: www.orsus-xelent.com.

Information Regarding Forward-Looking Statements

Except for historical information contained herein, the statements in this Press Release are forward-looking statements that are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Forward-looking statements involve known and unknown risks and uncertainties, which may cause our actual results in future periods to differ materially from forecasted results. These risks and uncertainties include, among other things, product demand, market competition, and risks inherent in our operations. These and other risks are described in our filings with the Securities and Exchange Commission.


Contact:
Orsus Xelent Technologies, Inc.
Xavier Xin Wang
President & CEO

US:
Tel 212-719-7535
Fax 212-790-9594

PRC:
Tel 010-85653777
Fax 010-85653666

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