Klegg Electronics and VisioNET Contemplate Strategic Partnership

LAS VEGAS--July 5, 2006--Klegg Electronics and VisioNET Television Network have entered into a mutual nondisclosure agreement for purposes of structuring a strategic partnership for the marketing and distribution of Klegg's new MPEG-4 handheld Mini-V12 portable media players.

The Klegg Mini V12 Media Players allows users to access a wide range of audio and video content--from music videos to pay-per-view entertainment. Slightly smaller than an Apple(R) iPOD with retail pricing starting at approximately $100, the Mini V12 sports a bright 1.8" TFT Color LCD screen and Bluetooth Class 2 stereo sound. A built-in lithium-polymer battery offers 20 hours of continuous playback between charges. The device can store up to 4 GB of audio and video entertainment for playback at the user's convenience. VisioNET will develop a user interface for the Mini V12 and offer users access to the company's vast array of media and IPTv content.

"The Mini-V12 represents the next generation in handheld media players," said Dennis Gentles, CEO of Klegg Electronics. "When you combine the V12's portability and immense storage capacity with VisioNET's ability to deliver first-rate media content, we believe we will have a product unlike anything else on the market."

To see more information about the new Klegg Mini V12 visit: http://www.kleggusa.com/kleggminiv12.htm

About Klegg Electronics, Inc.

Klegg Electronics, Inc. (www.klegg.com) (Other OTC: KLGE) is a manufacturer and distributor of high-quality consumer electronics. Klegg Electronics has focused on designing a variety of products that work seamlessly together within the home. Klegg distributes its high-end home electronics through specialty boutique stores nationwide, while distributing their portable electronics through music retailers and online. The corporation is headquartered in Las Vegas, NV.

About VisioNET Television Network

VisioNET Television Network provides IP Television, digital entertainment, information, and communications to residential broadband subscribers. The company's core technologies consist of proprietary software for the encoding, secure transmission, and decoding of digital video. VisioNET licenses both foreign and domestic content from a variety of sources for rebroadcast over its IP networks. The company is headquartered in Las Vegas, NV and maintains network data centers in Los Angeles, CA and Atlanta, GA. For more information, contact Alex Jaramishian, alexj@visionetv.com.

Cautionary statement for the purpose of the safe harbor provisions of the Private Securities Litigation Reform Act of 1995: Forward-looking statements in this news release are made under the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Certain important factors could cause results to differ materially from those anticipated by the forward-looking statements, including the impact of changed economic or business conditions, the impact of competition, the success of existing and new product releases, the management of our growth, and other factors discussed from time to time in reports filed by the company with the Securities and Exchange Commission.