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Major_Bankz

10/17/06 9:29 AM

#11646 RE: db7 #11643

Splinternet Communications Signs Agreement With Artera Group
10/17/2006

Network Optimization Allows For Better Quality VoIP Service

NORWALK, Conn., Oct 17, 2006 (BUSINESS WIRE) --
Splinternet Communications, Inc., a wholly owned subsidiary of Splinternet Holdings, Inc. (OTCBB: SLNH), announced that it has signed an agreement with Artera Group, Inc., a subsidiary of NCT Group, Inc. (OTCBB: NCTI) under which Splinternet will optimize its network utilizing Artera Group's Artera Turbo(TM) technology (patents pending). An optimized network will allow Splinternet to offer state-of-the-art voice quality over its VoIP networks, even in international markets where networks are not always as robust as in developed markets. Splinternet will also utilize additional technologies from Artera Group and its parent to enhance its VoIP offering with noise and echo cancellation and signal conditioning.

One of the central features of Internet Protocol is that the signals which traverse the network can take many different routes between the same origin and destination. As a result, VoIP service can occasionally lag traditional public switched telephone network service in terms of quality. Artera Turbo technology is especially designed to optimize the network and reduce jitter, a form of distortion caused by the arrival of data packets at their destination in the wrong order. A further benefit is the reduction in bandwidth requirements, which is especially helpful in countries where the only access to the Internet is via satellite.

Splinternet's president, James Ackerly reported, "One of the gating factors in VoIP has been the quality of the call. Across the board, telephony costs are declining and, in our experience, traditional telephony users have resisted switching to VoIP unless the quality of the VoIP service is at least as high as the competing traditional service. This agreement with Artera Group will enable us to ensure our service quality, especially in network-challenged locales. We believe this agreement will further enable us to attract users to our VoIP products, who may otherwise resist migrating. We remain committed to offering our customers the highest level of quality possible, at competitive prices."

About Splinternet Holdings, Inc.

Splinternet Holdings (www.splinter.net) is a holding company whose single current wholly-owned subsidiary is Splinternet Communications. Splinternet Communications is a developer of products, services, and marketing strategies centered around opportunities in Internet Telephony. Splinternet Communications' approach is to develop products and services that will capitalize on the shift in telecommunications technologies from traditional telephony to Voice over Internet Protocol (VOIP) by creating a diversified suite of offerings which have a broad range of functionality and will, in the aggregate, meet the needs of the largest possible addressable market. Centered on a core technology, current projects include a GoogleTalk-to-PSTN service, Hosted retail VOIP service, and Wholesale Carrier service. Splinternet is committed to being the lowest cost provider and to use partnership marketing whenever possible, allowing the company to quickly take advantage of market and regulatory shifts internationally. Splinternet Holdings is actively seeking investment opportunities in companies which would benefit from using VOIP to lower their cost of providing services to existing communications customers.

SEC Filings and Forward-Looking Statements

Certain statements made in this release are forward-looking statements. Forward-looking statements are based on the then-current expectations, beliefs, assumptions, estimates and forecasts about the business of Splinternet Holdings, Inc. and the industries and markets in which Splinternet Holdings, Inc. operates. These statements are not guarantees of future performance and involve risks, uncertainties and assumptions, which are difficult to predict. Therefore, actual outcomes and results may differ materially from what is expressed or implied by these forward-looking statements. Factors which may affect the forward looking statement identified above and Splinternet Holdings, Inc.'s business, financial condition and operating results generally include the effects of adverse changes in the economy, reductions in consumer spending, declines in the financial markets and the industries in which Splinternet Holdings, Inc. and its partners operate, adverse changes affecting the Internet and Voice-Over-IP (VOIP) telephony , the ability of Splinternet Holdings, Inc. to develop and maintain relationships with strategic partners and suppliers and the timing of its establishment or extension of its relationships with strategic partners, the ability of Splinternet Holdings, Inc. to timely and successfully develop, maintain and protect its technology and product and service offerings and execute operationally, the ability of Splinternet Holdings, Inc. to attract and retain qualified personnel, the ability of Splinternet Holdings, Inc. to successfully integrate its acquisitions of other businesses, if any, and the performance of acquired businesses. Splinternet Holdings, Inc. expressly disclaims any intent or obligation to update these forward-looking statements, except as otherwise specifically stated by Splinternet Holdings, Inc.

SOURCE: Splinternet Communications, Inc.

For Splinternet Holdings Integrated Corporate Relations Jeanine Oburchay, 800-257-9583

Copyright Business Wire 2006


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Major_Bankz

10/17/06 9:31 AM

#11648 RE: db7 #11643

LMRA going nutz like a sizzling IPO .