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October 16th, 2008

Alternet Systems, Inc. and Guatemala City Officials Meet In China to Finalize Wireless e-Ticketing Solution Planned for Implementation in Guatemala Starting Later this Year

Guatemala City Contract to Move Alternet Toward $24 Million 2009 Revenue Goal

MIAMI, FLORIDA- October 16, 2008 - Alternet Systems, Inc. (OTCBB: ALYI ) today announced that Company CEO Henryk Dabrowski will lead a trade mission to China October 18-26, 2008. The trade mission concludes many months of negotiation with the city of Guatemala, Private Association of Bus Owners and other local partners to bring Alternet’s wireless e-ticketing system to their municipality. Delegates of the trade mission include the board of directors of the Private Association of Bus Owners, the President and Vice President of Banrural, the largest bank in Guatemala, as well as senior management of Transmetro and the City of Guatemala. The delegation intends to finalize plans to update the Guatemala City bus system to include a wireless e-ticketing solution, while visiting a bus system solution running with the components of the system to be implemented in Guatemala City.

The trade mission will include stops in Beijing, Tianjin, Zhongtong, Hangzhou and Shanghai. Trade mission delegates will visit the manufacturing facility of Zhongtong Bus Holdings and meet with key financing institutions. Delegates will get to experience Hangzhou’s transportation system first hand, which is currently managed by Alternet Systems partner TCPS. The system has been used successfully in more than 82 cities throughout China, to provide prepaid E-Ticketing that customers can use to pay for a variety of municipal services, utilities and public service, not the least of which is mass transportation.

Alternet Systems and Transtech Sino America

Earlier this year, Alternet Systems, in partnership with TCPS, formed Transtech Sino America. Within the partnership Alternet provides business development, resource sourcing, logistics and legal support while TCPS provides capital, technology and substantial public transportation management experience. Headquartered in Miami, with offices in Guatemala, Colombia, El Salvador, Peru and Mexico, Transtech provides turn-key fleet transportation management solutions, including the sale of buses manufactured in China and sold into the Latin American market, smart card e-payment solutions, alternative fuel solutions and carbon credits. Additionally, Transtech will provide financing for new transportation fleets. Financing is crucial for many municipalities that are obligated to maintain up-to-date, reliable public transportation due to heavy dependency on public transportation among residents.

Webcast Highlighting Latin American Expansion, Second Quarter Results and $24 Million 2009 Revenue Goal Available Online

CEO Henryk Dabrowski recently conducted a Webcast to discuss the second quarter 2008 and year-to-date earnings results, an update on operations, the company’s E-Ticketing solutions and expansion in Latin America.
Further highlights of the Webcast include:
• Focus on mobile and E-Ticketing transactions
• Strategic partnerships with partners in China and Singapore
• Mobile transaction processing for pre-paid cell phones and utilities
• Expansion into additional markets in Latin America
• Business development initiatives underway in the Caribbean Basin
• Imminent announcement of first milestone contract
• 2009 revenue goal of $24 million

An archive of the Webcast is available at http://www.investorcalendar.com/IC/CEPage.asp?ID=133304.

ALYI Corporate Fact Sheet

A Fact Sheet highlighting the Company's recent acquisition of TekVoice Communications, E-Transaction technology, mass transportation management services and strategic partnerships is now available.

If you are interested in receiving a copy of the Fact Sheet call 214-556-5927 or send an e-mail to Red River Advisors at [email protected].

About Alternet Systems (www.alternetsystems.com)

Alternet Systems Inc. (OTC BB: ALYI.OB - News) provides: telecommunications services; education and health-care application software and systems; and electronic transaction platforms for the mass transportation and utility markets. Alternet Systems Inc. is a U.S. corporation with offices in Miami, Florida and Vancouver, British Columbia, Canada.

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.