USTelematics, Inc. Reports on Year-End Achievements and Issues Corporate Update

CHICAGO--USTelematics, Inc. (OTC: UTLM.OB), reports its year-end results and other corporate achievements. The Company filed its first Annual Report as a public company on Form 10KSB with the SEC on September 12, 2007, for the period ending June 30, 2007.

“This has been a significant year for USTelematics,” says USTelematics’ Chief Executive Officer, Howard Leventhal. “After years of research and development, we are now at the cusp of commercially launching our first products, Vivee™ and Voyager™. In addition to the considerable work preparing to launch our lead products, we also fully executed upon our stated commitments for a Direct Public Offering, public registration, and trading of our Company’s common stock.”

Vivee “speaks” e-mail and Short Messaging Service (SMS) text messages through animated avatar characters, and provides drivers with safer communication. Vivee software is now available for pre-existing devices working with most Windows operating systems, including Windows Mobile and Pocket PC edition, through the Company’s online store (www.ustelematics.com). Vivee is also pre-loaded on a selection of the new hardware being offered at ustelematics.com.

“Vivee2go™” is a handheld Global Positioning System (GPS) device that speaks e-mail and text messages to the user and includes cutting edge 3D moving map navigation and voice synthesis. The device is made and warranted by Hewlett-Packard and is the subject of the Vivee bundle launching in direct response advertising. Vivee2go also includes a mobile version of Microsoft Office software, digital movie playback, digital music play, digital photo viewing, and games. The Vivee2go bundle is offered at a one-time cost of $299.99 plus monthly service. “The most popular devices delivering only GPS capabilities are commonly sold for approximately the same $299 retail price, making Vivee2go an extraordinary consumer value versus GPS-only devices,” says Leventhal.

Voyager, the Company’s earliest-developed product line, provides automotive mobile digital Television and Internet programming for family-oriented rear-seat entertainment. The Company has entered into an agreement with a major direct broadcast satellite (DBS) content provider to enroll consumers in new and upgraded satellite TV subscriptions. The agreement also provides for commissions to be paid to USTelematics for acting as the source of new subscribers.

During the past year, the Company solidified agreements with a number of partners to enable the launch of its products including Verizon Wireless (partnership of Verizon Communications [NYSE: VZ] and Vodaphone [NYSE: VOD]) and EchoStar/Dish Network . USTelematics also became a marketing affiliate of CinemaNow in an agreement that pays commissions to USTelematics for re-selling CinemaNow’s downloaded digital movie content. Founded in 1999, CinemaNow counts EchoStar, Index Holdings, Menlo Ventures, Transcosmos, Microsoft, Lionsgate, Cisco Systems, and Blockbuster as investors. USTelematics additionally entered into agreements with TechData and Computer Discount Warehouse to provide data center components, product components, and related services. Also over the last twelve months, the Company secured numerous manufacturing sources for its products, domestically and overseas in Asia.

Mr. Leventhal concludes, “We have successfully transitioned from R&D into a commercial-stage Company, and we are quite optimistic about the Vivee and Voyager product launches. We believe the Company’s publicly-traded status will provide us with increased visibility in the marketplace, and we look forward to updating the investment community on our continued progress.”

About USTelematics

USTelematics, Inc. is engaged in the development and commercialization of proprietary broadband telecommunications products and services for in-car education, communications, and entertainment. The Company has developed and will soon ship its proprietary “Vivee(TM)” unified e-messaging online service and related products. Vivee, “speaks” email and SMS messages through an animated avatar, providing safer communication while driving. The Company operates an online store that offers Vivee software for pre-existing devices as well as a selection of new hardware. In addition to Vivee, USTelematics has developed Voyager(TM), a series of products designed to provide mobile digital TV and Internet programming for family-oriented rear-seat entertainment and education. After years of research and development, the Company expects to deliver its first products during the fourth calendar quarter, 2007.

Where most pre-existing mobile devices offer “mobile Web” services that are quite disabled with respect to Web browsing, Voyager provides a fully normal, full-screen browsing experience including streaming video, just as one encounters while using a laptop or desktop PC.

For additional information, please visit the Company’s website at www.ustelematics.com.

Forward-Looking Statements

The information herein contains forward-looking statements. All statements other than statements of historical fact made in report are forward-looking. In particular, the statements herein regarding industry prospects and future results of operations or financial position are forward-looking statements. These forward-looking statements can be identified by the use of words such as “believes,” “estimates,” “could,” “possibly,” “probably,” anticipates,” “projects,” “expects,” “may,” “will,” or “should” or other variations or similar words. No assurances can be given that the future results anticipated by the forward-looking statements will be achieved. Forward-looking statements reflect management’s current expectations and are inherently uncertain. Our actual results may differ significantly from management’s expectations.