TransAKT is pleased to announce that the Company has entered into merger discussions with the exclusive Sanyo distributor for telecommunication products in China. Sanyo is a well known brand name for its telecommunication products worldwide, and is widely accepted by Chinese customers. Management is optimistic that this merger will enhance the market position of TransAKT's new operations in China.

This Sanyo distributor has built up a profitable sales channel in China with annual revenues of approximately US$15 million. TransAKT and the distributor in China are both happy to see this merger will successfully go through in the near future. TransAKT together with Sanyo, has projects including a Wi-Fi phone, a dual mode GSM/WIFI phone and VOIP ready multi-line cordless phone systems and we believe this partnership will benefit both companies.

TransAKT expects operations in China will be started by the end May 2007. Staff and engineers have already been sent to China and the legal process to register a new company in China is under way. China's buying power is increasing daily and its population of 1.3 billion will guarantee our move into this market is a wise decision for the company and management believes that China will become the main source of our company's future revenue income.