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July 15, 2005
Alternet Joins Consortium to Build Broadband Wireless Networks in Two Countries

VANCOUVER, BC, CANADA -- Alternet Systems Inc. (ASYI) has joined a consortium to deliver country-wide broadband wireless networks in two Eastern European countries. These networks will bring VoIP, high-speed Internet and IP-TV to under-served communities throughout each country.

Alternet’s CommunityWeb, SchoolWeb and HealthWeb server software will be used to optimize, organize and distribute broadband internet service to schools, health centers and the general community.

The total population base of these two countries totals 12 million people, with 60% located in rural communities. Residents of rural areas have very limited access to telephones (4 in 100 have telephone access) and virtually no internet access.

The initial phase of the network build out is for 400 communities, and a total of 4,000 communities have been targeted for network access. The network consists of a combination of fiber optics and fixed wireless towers with the last mile delivered by wireless distribution. Connecting the local school, health center and government office to a broadband wireless and VoIP system, is of primary importance. The consortium’s low roll-out cost, leading-edge technology and fast implementation cycle give it a strong competitive advantage.

Alternet will be supplying CommunityWeb, SchoolWeb and HealthWeb software for these wireless networks, as well as network security (anti-virus and anti-spam) and web conferencing.

Alternet Systems Inc. is a developer of software that optimizes the capacity of broadband Internet networks. The rapid integration of broadband wireless networks around the world is expected to allow the next billion users of the Internet to join the information age. Alternet is uniquely positioned to participate in this world-wide expansion of broadband wireless networks.

For further information, please contact the company at 866-608-2540 or visit our website at

On Behalf of the Board of Directors

Michael Dearden

Forward Looking Statement

Certain statements in this news release may contain forward-looking information within the meaning of Rule 175 under the Securities Act of 1933 and Rule 3b-6 under the Securities Exchange Act of 1934, and are subject to the safe harbor created by those rules. All statements, other than statements of fact, included in this release, including, without limitation, statements regarding potential future plans and objectives of the Company, are forward-looking statements that involve risks and uncertainties. There can be no assurance that such statements will prove to be accurate and actual results and future events could differ materially from those anticipated in such statements.

Alternet Systems Inc., Vancouver
Michael Dearden, President
(866) 608-2540
Source: Alternet Systems Inc.

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