Teleconnect, Inc. (OTCBB:TLCO - News) announced today that for the quarter ended December 31, 2005, its Spanish subsidiary reported - EBITDA of $154,000 compared to a loss of $201,000 for the same period in 2004 representing a positive improvement of $355,000. On a Net Income basis the Spanish subsidiary reported - Net Income of $79,000 compared to loss of $294,000 for the same period last year; an improvement of $373,000.

These results have impacted Teleconnect Inc´s results to produce a consolidated EBITDA of $(21,000) for the quarter ended December 31, 2005 as compared to an EBITDA of $(299,000) for the same period in 2004.

Teleconnect Inc. President, Gustavo Gomez explains, "The company has streamlined its operations significantly over the past two years by reducing debt, improving profit margins, reducing SG&A expenses and developing new products to better improve its competitiveness. Our priority of maximizing shareholder value has the Company focused on obtaining quarterly positive EBITDA and Net Income levels on a consolidated basis in Teleconnect Inc. during 2006."

About Teleconnect:

Teleconnect 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. Teleconnect Inc. is traded on a U.S. stock exchange, the Over The Counter Bulletin Board (OTCBB) with trading symbol TLCO. Teleconnect provides commercial and residential users in Spain with a very competitive array of prepaid services. www.teleconnect.es

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.