Successful Trials of Proprietary Rechargeable Card
MADRID, Spain --October 22, 2004 -- ITS Networks Inc (OTCBB:ITST) today announced the successful testing of its Rechargeable Prepaid Card (RPC) after 18 months of development. This RPC allows the Points of Sale the ability to recharge an existing Calling Card on the Cash Registrar and generate Electronic Receipt.
ITS Vice President and Teleconnect CEO, Herman de Haas states, "We have been asked by our large accounts for some time now to produce such a Rechargeable card product because it reduces their need to maintain calling card stock. The Rechargeable Calling Card facilitates the control of sales of the product and it allows for greater profit margins on the sale. The rechargeable card will be launched in November with our primary client of Prepaid products that has hundreds of direct points of sale throughout Spain. Due to the ease of use, flexibility of configuration and additional features, we expect to see sales of this product to grow between 10 to 15% per month. We anticipate that the Rechargeable Calling Card will contribute significantly to our Teleconnect subsidiary´s financials to a positive monthly EBITDA for the first time in its corporate history before the end of this year".
ITS President, Gustavo Gómez, continues, " At ITS Networks we believe in innovation and we believe in adapting the latest of technologies to solving the current problems of our customers or clients. We are in a highly competitive market where differentiation is fundamental to protecting margins. We will continue the focus to differentiate ourselves in product offerings and customer care. Our final objective is a profitable return on rapidly growing operations to create shareholder value."
About ITS Networks (http://www.teleconnect.es/en/quienessomos.jsp)
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