CONNEXION MOBILITY LTD — Capital/Financing Update 2004

May 16, 2004

ECSI Announcement

ECSI Limited secures 25% holding in NASDAQ US\$250 million IPO.

Highlights

• ECSI Limited has negotiated for China partner Jeton to raise US\$50 million to expand its NAR system roll out across China.
• Confirms offshore IPO (NASDAO) to offer 20% of stock to public in newly formed company, Peak King Holdings ("PKH").
• Confirms major investment partner to fund IPO

Details

PKH will acquire 100% of Jeton and guarantee to raise a minimum of US\$50 million.

ECSI Limited to earn 25% (approximately US\$65 million) of PKH by selling its supply contract with Jeton to PKH. (Subject to approval of ECSI Limited shareholders)

Mr Graeme Green, CEO of ECSI Limited, has been in Hong Kong for the past two weeks with the full authority of Mr Lu Xiao Bing, Chairman of Jeton, to finalise negotiations on behalf of ECSI/Jeton with three bidders.

ECSI and Jeton are pleased to announce that the Beauwal Group of companies, very late last week, overcame previous contract difficulties and has been selected as the successful partner/investor.

Beauwal will earn 18% of PKH by: -

• Providing an initial deposit of US\$5 million this week.
• Facilitating an immediate US\$25 million line of credit to Jeton for the roll out.
• Guaranteeing to raise a minimum of US\$50 million for the expanded rollout of the NAR system in China.

Précis.

The Beauwal Group

Beauwal AG - Europe

$\bullet$ Signed contract to supply initial funds of US\$5m as deposit to Peak King Holdings Limited, a BVI company set up to purchase 100% of Jeton, and to quarantee a minimum of US\$50m for the roll out of the NAR system in China. A pre listing US\$25m line of credit will also be issued.

Chairman: Prince Adrien de Merode (also on the Board of a number of international companies including the Appian Group)

Board: Includes Jacques de Groote, ex executive of IMF and World Bank.

Beauwal SA - Asia

• Established in Asia to facilitate Asian projects (including Jeton/ECSI) Chairman: Bernard Roque: Experienced in finance and investment markets, previously head of the International Chamber of Commerce, USA.

Beauwal Asset Management - USA

Established in the USA to ensure the NASDAQ listing of Jeton/ECSI entity, PKH.

Chairman: Timothy J Connor

Tim has extensive experience in listing companies in the USA. He was the President of HCI Corporation, taking it from a shell to the parent company controlling 265 food and restaurant outlets across the USA, employing around 7,800 people. Tim founded MCM Investment Banking which rendered a variety of corporations with investment bank financing vehicles to go to the public markets.

CEO: Alex Beltram Experienced in stock broking and banking services.

Mr Green said that negotiations have been ongoing for over a year now with various bidders and that it has taken this long to reach a conclusion because of the very definite conditions placed on the parties by ECSI/Jeton in the interests of its current and future clients, the city governments across China. Both ECSI and Jeton have had to sacrifice much in the way of short-term profits to enable this much larger opportunity to be realized.

More information regarding PKH structure, Board and IPO time lines will be provided, as further details are made available.

ECSI Limited will call an EGM shortly (date TBA) to seek shareholder approval to sell its main asset to PKH.

Graeme Green CEO

More information, ECSI investor relations, 02 62413311