Company Forecasts Over 200% Revenue Growth in Next 36 months

Monday August 23, 2004 10:00 am EDT

MADRID, Spain --August 23, 2004 -- ITS Networks Inc (OTCBB:ITST- News) today announced its projections to achieve profitable annualised sales between 16 Million Euros to 20 Million Euro ( $19,7 M to 24,6M USD) by end of fiscal year 2005-2006, and over 25 Million Euros ($ 30,7 M USD) by end of fiscal year 2006-2007 from its current revenue level of 8 Million Euros ($ 9,8 M USD).


ITS Networks, Inc.´s - affiliate, Teleconnect Comunicaciones S.A. in Spain, has finalized its three-year business plan which projects profitable annualised revenues of over 25 Million Euros ($ 30,7 M USD at current exhange rates) by end of fiscal year 2006-2007.

ITS Vice President and Teleconnect CEO, Herman de Haas, states, "Our business plan is quite straightforward. It projects the necessary funding and capital expenditures and it reflects sales primarily from two lines of business, Wholesale and Retail. The latter can be broken down further into Pre-paid Calling Card Services and Residential Services. By simply doubling our Retail Sales, by launching new products and features, we will be near our two-year objective of 16-20 Million Euros. Our Retailer network, numbers over 5000 points of distribution and we are aggressively in the process of signing up more retailers. By starting up and incorporating the wholesale business line we feel quite confident that we will reach our three-year objective."

ITS President, Gustavo Gómez, continues, "By focusing only on products that will contribute to Gross Profits and putting into place the proper effective marketing which was not possible due to capital constraints in the past, we are quickly positioning the company to be a serious competitor in certain niche markets in Spain. We are actively pursuing possible joint ventures and potential acquisitions that will sum positively to our existing business plan".

About ITS Networks:

ITS Networks, Inc. through its wholly owned subsidiary Teleconnect Comunicaciones S.A., a Spanish telecommunications company, is a major player in the prepaid telecoms industry in Spain. ITS Networks, Inc. is traded on a U.S. stock exchange, the Over The Counter Bulletin Board (OTCBB). ITS Networks provides commercial and residential users in Spain with a very competitive array of prepaid services. www.teleconnect.es


Contact Information:

Rick Lutz
LC Group
404-261-1196
lcgroup@mindspring.com

Forward Looking Statements:
Except for the historical information contained herein, the statements in this press release are forward-looking statements that involve risks and uncertainties. Potential risks and uncertainties include, without limitation, continued competitive pressures in the marketplace; the effect competitive and economic factors and the Company´s reaction to them may have on consumer and business buying decisions with respect to the Company´s products; the ability of the Company to make timely delivery of new products and successful technological innovations to the marketplace; the continued availability of certain components and services essential to the Company´s business currently obtained by the Company from sole or limited sources. More information on potential factors that could affect the Company´s financial results is included from time to time in the Company´s public reports filed with the SEC
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