Contec Innovations Closes First Hornet Sales in Q1



Vancouver, Canada, -/June 02, 2004 Wi-Fi Technology News/- Contec Innovations (?Contec? or the ?Company?) last week announced its financial results for the first quarter ended March 31, 2004.

?During the first quarter, Contec achieved the first two sales of our Hornet? technology and we are making significant strides in the commercialization process. Our first class team of management, advisors and employees are executing our business plan very well,? stated Perry Quan, Contec?s president and chief executive officer.

Mr. Quan continued: ?Wireless remains the bright spot of the telecom services industry globally, as we see market need catching up to available technology. Contec expanded its target markets to include the Value-Added-Services ("VAS") market for mobile data where we are starting to see more imminent demand. We continue to focus much of our commercialization efforts in China. As we work to increase sales, Contec will continue to move forward with our strategy of becoming a market leader in providing Mobile Services Delivery Platform (MSDP) products and solutions to mobile operators and service providers worldwide.?

Sales & Marketing Highlights

In February 2004, Contec finalized a comprehensive partnership agreement with PDAger Mobility (Beijing Xiejin Technologies in China). Working from a preliminary agreement that was announced in May 2003, the updated partnership involved the commercial deployment of a China Unicom-connected Hornet? mobile services delivery platform to be paid for under a revenue sharing agreement. PDAger also made a strategic investment of $250,000 via a private placement in Contec.

In March 2004, NEWT (Network for Emerging Wireless Technologies) purchased Contec's Hornet platform to be paid for partially via an initial payment to Contec and the remainder under a revenue sharing agreement. NEWT is Canada's leading wireless tech centre, providing hardware and software development support to suppliers and users of wireless products and services. NEWT was established in Calgary in 2002 with five founding industry members (HP, IBM, Nortel, Sun and TELUS).

In the first quarter of fiscal 2004, Contec broadened the sales reach of Hornet? by adding sales agents in China, South East Asia (covering Singapore, Malaysia & Indonesia) and Korea.

In February 2004, Contec hosted a highly successful seminar at the Canadian Embassy in Beijing. Topics centered around mobile Internet business opportunities in China, and a presentation of the company's flagship Hornet product. The seminar was well attended, with more than 30 representatives from such companies as China Unicom (China's second largest mobile operator), several leading mobile Value-Added Service providers, and other Chinese companies now entering the mobile Value-Added Services business.

Product Development Highlights

In February 2004, Contec and Danet announced a partnership to provide an integrated solution for content delivery and settlement using Contec's Hornet and Danet's new Content Interconnect & Service Provider Settlement Solution (C.I.S.S.). Danet, based in Weiterstadt, Germany, is a leading software company delivering turnkey and component solutions to telecommunications operators.

Contec Innovation?s first quarter 2004 consolidated financial statements, accompanying notes to the financial statements, and Management?s Discussion and Analysis are accessible on the Company?s web site at http://www.contec.ca/investors/financials.asp and on SEDAR, http://www.sedar.com.

ON BEHALF OF THE BOARD OF DIRECTORS OF
CONTEC INNOVATIONS

?Perry Quan?, President and CEO


About Contec Innovations

Founded in 1999 by leaders of the wireless industry, Contec accelerates the growth of the mobile Internet by enabling mobile service providers to capitalize on new data services. Contec's core product, the Hornet?, is an open, carrier-class mobile services delivery platform capable of hosting multiple applications in a secure, scalable environment. With Hornet, service providers can generate new revenues by efficiently deploying reliable and compelling data applications. Contec is headquartered in Vancouver, Canada and is listed on the TSX Venture Exchange under the trading symbol ?BUZ?. For more information, visit http://www.contec.ca.


Warning: The Company relies upon litigation protection for "forward-looking" statements.


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 Company?s expectations. Hornet? is a trademark of Contec Innovations Inc.

For more information, please contact:

Brian Buckley, Contec Investor Relations
Tel: 604-468-5638 or 1-888-552-0360
brian.buckley@contec.ca

Asa Zanatta, Media Relations
Tel: 604-408-1389
azanatta@spiritcommunications.ca