AccessTel (ATEL): AccessTel Conference Call (reviewed)...

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Saturday, 11/25/2000 11:26:03 PM

Saturday, November 25, 2000 11:26:03 PM

AccessTel Conference Call (reviewed)

Moderator: Investors, welcome to the AccessTel Conference Call, sponsered by AT& T, Nov 23rd:

AccessTel CC--Micheal Markow(FA), Larry Liang(CEO), Stuart Bockler(CFO).

Opening Statements

Micheal Markow-FA: The Share agreement between AccessTel and Shopps.com had been completed in its entirety. MM, as an advisor appreciates the patience, and has delivered SHPS as a debt-free corp to AccessTel.

Many things have not yet been disclosed, an 8-k will be filed shortly, with all particulars disclosed. The current 10Q will be filed friday, but recieved monday, as the SEC is closed until then.

Stuart Boeckler-CFO: There are 80-100 listening to the CC today. Provides an overview into AccessTel and the strategic deployment in China. Strategic aggrements and alliances will be forthcoming in PR's. This CC to focus on AccessTel China, in Shanghai, (including the contract with Haplink within the Business Developmental Park), which allow for the deployment of Broadband solutions and internet wireless connectivity; the ability to develop, commercialize, deploy, wireless products in China; and in the future manufacture and export out of China.

He talks about the Business Park, and the other US companies there that they will be servicing (Intel, Lucent, 3M, GE...), to date, $1.5B investment in the park, the only one of its kind supported at the federal level for US and multinational companies. The first AccessTel deployment is for internet wireless connectivity, then throughout Shanghai, then other cities. Continued alliance with Wells Communications to provide CLEC connectivity from properties in the US through their International gateway in Calif... all toward ramping up revenue in the company on an accelerated basis.

Lawrence Liang,-CEO: Lots of opportunity to bring Wireless technology, the Chinese Gov't and other organizations have requested that AccessTel work on projects. AccessTel has preferential treatment for deploying wireless technology in China. Inside the Developmental Park, there is not enough high-speed interlinks. They don't want to tear up the streets for fiber, so instead they are going wireless, via AccessTel. There is going to be a lot of investment for this project, and Liang assures that "we're going to build this into a very very big company."

Boeckler: Througout Shanghai, there are 40 year old AT&T copper lines, that exist for telephony and internet connection. AccessTel has within the park an existing base of subscribers that will be able to access through the wireless service very quickly, via Haplink. Opens it to questions (witholding to undisclosed material events until they are made public):

Q: What if any patented technology does AccessTel own, is their a website we can to to in order to look at some of these technologies. If you don't have patented technologies, what exactly do you bring to the party?

Boeckler: In the first stages of AccessTel, it's not looking to deploy patented technology and developed technology to deploy in China. We are not looking to take in investment funds to begin Star Wars. Through Liang's significant experience in high tech in San Jose for the past 25 years, and relationships with many of the tech firms and developers of the tech, we have relations with providers of existing tried and true tech available today. We have through assistance of the advisor to the board, Dr. Lee, further, advice and structure of connectivity in 2.5 and 3G tech.

In initial stages, providing interconnectivity services, not starting off as a manufacturer, or commercializer of our own products in the intial stage. Deploying existing stage tech, from, whether it be Qualcomm or Ericsson or Lucent, to provide us technology in CDMA, HDR, and in MMDS.

We will connect those Gateways to a combination of internet access and internet telephony. Through the strategic releationship with both Well's Comm and STS, begin to ramp up IP Int. telephony through 10-10-653 number in No. Cal, and the CLEC relationship with Wells Comm and begin to provide termination of telephony services in China at very lucrative rates already negotiated through the major telephony companies.

The formation of AccessTel China allows connection into the local PTI's (local telephony services & internet services). As a foreign owned company, AccessTel can participate in revenue on internet service provision and communication on international traffic--terminating calls in Europe, the US, Asia, and So. A. Also on calls eminating through their int gateway in San Jose.

Later deployment, with revenue base from service connectivity. Through Lee's and Liang's assustance, and other strategic alliances, 3G will open up to broadband and internet communication, both fixed and mobile, bringing appliances for connectivity. Through AccessTel China/Haplink, develpment, commericalize, and manufacture at lower prices in China for first stge deployment in China and further export.

AccessTel China has special rights to return revenue and profit on a strong percentage basis back to the parent company, Accesstel US-- breakdown of the profits will be released in an upcoming PR.

Q: Liang's background and history of AccessTel and relationship with Dr. Lee, and the deployment of WLL within the business park?

Liang: Deployment will be of MNDS, due to the size of the park (50k square), highspeed broadband. Liang and Lee are "old friends of many years, we started AccessTel together last year."

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Q: How much of a factor will Dr. Lee be in the plans of AccessTel?

Bockler: In regard to Dr. Lee, I must say that we expect future news releases specifically based on the relationship of Dr. Lee to AccessTel to be forthcoming. At this point, what can be said is that Dr. Lee was one of the original founders of AccessTel, with Boeckler and Liang, in February of 1999. Lee is an advisor to the board, currently he is reviewing our technology deployment for China, though not a direct employee or officer of AccessTel currently. Dr. Lee was at the Business dinner with the chairman of Chouhueding, the president of Haplink, one of the deputy directors-- Mr Ling-- who is on the business development side of Shanghai, China. There will be in the future news releases directly approved by Dr. Lee of his additional involvement.

Q: In an earlier press release, it was indicated that this CC may include some other parners of strategic alliances, understood that this cannot be fully disclosed, why the delay?

Boeckler: We have closed finally the share purchase agreement as of yesterday. There are a number of ongoing negotiations that are rapidly progressing. Over the next few weeks, additional news releases will show the public, that show AccessTel has the experience and cooperation of key strategic partners in our development in China. Due to the nature of the strategic candidates that AccessTel is in ongoing relationships with, all news releases must come through their own legal team.

Q: How big do you think AccessTel will grow in 6 months to a year, two years out, employees, revenue, etc...?

Boeckler: AccessTel will grow very quickly over the next few quarters and years, we are interested in increasing shareholder value. It will be a company that we can all be proud of. Over the next few weeks and months, I think you'll get a more and more clear picture of how quickly we can grow.

AccessTel looks to grow quite quickly. We are targeting growth and deplyment. Our focus is to grow our employee base rapidly to execute this deployment. We are negotiating certain strategic alliances which will train our Chinese counterparts in China. In China, the cost of high level technicians is approx. 1/4th to 1/3rd of US standards. On the technology development side, and on the broadband deploment side, we will concedntrate on adding employees very rapidly. Domestically, we are looking at a number of proposed acquisitions that will add not only infrastructure and assetts to AccessTel, but also employees and staff directly related to our business development and deployment.

By the first quarter of 2001, we expect to be operational on testing our Broadband technology in Shanghai. We will then add subscribers to the wireless service, via the developmental park, and Haplink Information Corp., throughout Shanghai. Besides the wireless service, we will also be deploying internet international telephony, which is domestically is an electronic outlay of equipment, not so much employee and staffing, instead joining larger POTS. In our IP telephony, AccessTel will not be looking to start a new infrastructure globally througout the world. We will JV and strategically align with world class telephone carriers, to avail them termination points in China, for compensated termination points worldwide. AccessTel is looking to build up revenues quickly, revenues targeted toward creating profit, and build through strategic alliance and the commercialization of the new technology, 3G CDMA will not be available for the next 12 months. As it comes online, through our strategic relationships, AccessTel has direct technology availability to utilyze that cutting edge technology to create different appliances to create services. AccessTel will concentrate on service fees. For the deployment in China, the Haplink agreement will take most of the legwork and installation, and we will provide the equipment, the training, the tech, and the backbone service to connect internationally.

The company will grow significantly, it is hard to put a target. The basis of what AccessTel is looking to do in China will command hundreds of millions of dollars over the next couple of years, and AccessTel's management is determined to grow the company on a predictable basis, not spending tens of millions on unproven products, instead spending a few million on commercializing existing techology to seamlessly connect between MNDS, between CDMA, between HDR, to provide voice, data, fax, video, and internet connectivity services. Each subscriber that we add on, each new city deployment, will be a mirror of the growth that we are starting in the Shanghai Business Development Park.

Q: Do you have adequate funding in place and are the other elements in place to ramp up revenue?

Bockler: AccessTel is continually on an ongoing basis anticipating its funding needs. Details of future funding and capitalization will be contained in the filing of our 8-K. All shareholders will find that AccessTel's combined management is addressing all of these issues. For our deployment in China, AccessTel is going to seek significant investment, from both the Chinese, and from WallStreet.

Markow: There have been numerous meetings in regard to the ramp-up of financing, making the approprite move to put that financing in place. The missing componant, in order to complete that ramp-up to the level that is needed for the roll-out, is the completion of the share exchange agreement, which was done yesterday. Now, we can move forward with our financing packages, as planned, very quickly. The old management of shopss.com is not surviving this reverse acquisition, they are formally gone.

Q: Is the share structure still the same, roughly 20M O/S, any official figues on the share holdings?

Boeckler: It will be detailed in the 8-K, which is currently being prepared. ((JJ's note: Expected O/S is between 20-23M, following share allotment to founders, and funding partners)).

Q: When you speak of strategic alliances, are you waiting for the 8-K to be filed before those are made public?

Boeckler: Exactly, there has to be a full fair disclosure to all. Through Liang, Dr. Lee, and Boeckler, via relationships with a number of different existing corporations, AccessTel has a number of companies that are offering AccessTel availability of their technology to deploy in China. Accesstel is different than many other companies that are going to do work in China because we have an understanding of what's necessary in WallStreet to relate to shareholders and to raise money on an orderly basis, and the availability of our founding shareholders to advise and negotiate properly in China, and to seek areas where we can ramp-up quickly.

Over the next few weeks and months, the specifics of the situation in the high-tech developmental park and a technology park, that we will be secure in our investment because companies like Intel, Motorola, Nortel, Cisco, and Lucent have been existing in this park since 1988. The WLL we will be deploying in China will be completed much quicker than those of many of the majors negotiating on their own in China.

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Q: Is the contract for the Shanghai Business Park exclusive?

Liang: To his question as if we have an exclusive contract for the Shanghai Business Park, the answer is Yes. Only AccessTel was given the contract. There are lots of big companies from the US, Cisco included, that it was not granted to. The Business Park Chairman came here personally to sign the contract with AccessTel, very important.

Is there a telephone number and e-mail that investors can use for asking qustions or comments?

Liang: We are going to set those departments up very quickly, because we are in the process of moving into bigger offices, as we begin deployment of AccessTel's projects.

Boeckler: AccessTel has put into effect a website. You can start to go over and take a look at AccessTel at it's website: http://www.accesstelinc.net
((JJ's note: The website is a powerpoint presentation used for funding investors information-- use full-screen, available on Explorer.))

An e-mail address will be posted in order to answer questions. Telephone questions are currently coming directly into Boeckler's office, a full-time person will soon be available for answering investors questions, now that AccessTel has completed the share purchase agreement, and is part of the public company. For financial questions, 732-591-0520. A VP of IR will be in place shortly that will be able to answer your questions on a regular basis.

Q: Is this the same Dr. Lee that is chairman of LinkAir?

Liang: Yes.

Q: Can you comment more as if there is going to be any partnership with LinkAir?

Liang: Well, anything is possible, we...

Boeckler: Until the 8-K is out, until we make formal announcements to all of the public, none of these issues should be covered. If everyone engages in this manner. AccessTel will be a world class company. It is on the road, and we want to stay on the track of a world class company by doing everything properly and in accordance with all securities regulations.

Q: I appreciate that, so you really can't comment on their technology, their CDMA...

Liang: You can read about their technology on the Link Air website. Dr. Lee was a founder of AccessTel before he joined LinkAir... you can use your imagination, the rest I cannot give in full detail. He is a major shareholder of AccessTel.

Boeckler: Just so you understand. Dr. Lee has been, and continues to be until we release additional news, has been an acting advisor to the management of AccessTel, from the beginning.

Through all of the technology, there are tremendous advances in Wireless Broadband Solutions. In the next couple of years, you'll be able to communicate entirely wireless. In the US, it's going to be a much more expensive transistion. It's going to be flawed with delays in the US ((JJ's note: Liang here interjects--"because of regulations")) due to the significant investment in the US in wired technology. The US has all alternatives here. In China, which is a developing country, the AccessTel management believes that China will be the technology giant in the world in 2010. Because companies like AccessTel, will develop and transfer technology over the next ten years, for deployment, development, and manufacture a commercialization, and then export out of China.

In China, because of the high cost of laying fiber optic, the fast-ramp will be to Broadband. Because of AccessTel's relationships of AccessTel's management team, AccessTel has been invited into China, not that we have been knocking on doors, AccessTel has been invited to into China to develop their wireless solutions. And working accordingly with the Chinese Gov't, with the local Gov't's and in accordance with Chinese law, AccessTel will develop the technology within China.

Liang: We need to stop here, no need to explore to much.

Q: Could you address the name and possible symbol change in the near future? And, we have all been under the assumption that their was a strategic alliance with Qualcomm or Qualcommtel, if you could, would you please address that?

Markow: Unfortunately we cannot address these things at this time, they will be addressed as the week progresses. It is important to note that preliminary to many of the things that Stuart and Lawrence have done, before any of that could be completed --and they've done a great deal-- the merger, the share exchange, had to be completed. With that completed as of yesterday, AccessTel is prepared to move forward and fulfill all of the progress that has been made.

Q: OK, because I noticed on the website, that their was an investment by Qualcommtel, going through that...

Markow: AccessTel was a private company when that was posted. There are new rules to follow as a public company, and I believe tonight we should make some changes there ((JJ's note: the website is down as I write this.))

Q: I realize that the initial work is being done in Shanghai, but is AccessTel also going to do work in other provinces and cities of China, and in Hong Kong?

Liang: We have a lot of offers. We can only do one thing at a time. There are a lot of opportunities here, we just have to evaluate them before making any decisions. We have a lot of offers from many parts within the country of China. After we finish the project in Shanghai, then we will duplicate the success of the Shanghai Business Park to other locations.

Closing Statements:

Boeckler: Thank you to all our shareholders and interested investors for your support, and look forward to our bright future. We as management feel that there is a lot of hard work ahead of us, we have accomplished our first major hurdle, which is becoming a public company, we are very pleased to join with the shopss.com shareholders to build value for all shareholders in the months and years ahead as AccessTel. the management is commited to keeping shareholders informed of our progress, we will have a person to work full-time interacting with shareholders shortly.

Liang: Thank you to everybody. I hope this is the beginning, and not the very end. We have a lot of Strategic partners that are offering us a lot of opportunities and technology, we will let everyone know. We are standing on sturdy ground, we've already built the companies foundation, and we've got a lot of opportunities. We are going to build this company very very very strong in a very very short time. So be patient. Thank you for joining the CC.

Markow: For all those shareholders I know and have spoken to over all this time. It's done, we've done it. We are all proud of the accomplishment, and this opportunity is everything that you expect it to be. And one last final word, goodnight errol wherever you are.

Moderator: This concludes the Conference call.

imo

imho, Jerome