Amtec Announces Cellular Subscriber Growth and ReportsThird Quarter Operating Results.

NEW YORK--(BUSINESS WIRE)--Feb. 16, 1999--

Cellular Subscribers Increase 75% in Third Quarter

AmTec, Inc. (Amex: ATC), a telecommunications company with operations in the People's Republic of China, today reported financial results for the third quarter of fiscal 1999 which ended December

AmTec has established joint ventures to build cellular telephone networks in China and is in the process of merging with the China operations of major telecommunications companies, including UIH International and Global TeleSystems Group, Inc., in order to expand its presence in the rapidly growing Chinese telecommunications market. The Company's first cellular joint venture has six cellular networks operating and plans to launch an additional four by the end of 1999. During the third quarter, cellular subscribers increased by 75% from 20,000 for the quarter ended September 30, 1998, to 35,000 for the quarter ended December 31, 1998.

In reporting the results for the third quarter, Albert G. Pastino, AmTec's Chief Financial Officer stated, "The cellular networks are rapidly growing but are still in the roll-out phase. Thus, the Company reported a loss applicable to common shares in the third quarter, of approximately $2.1 million or $0.08 per share, compared with a loss of approximately $1 million or $0.04 per share in the corresponding period of 1997 when there was a higher level of network construction and a substantial amount of cost being capitalized". Mr. Pastino added, "These financial results are on target with what we expected. It is important for our shareholders to understand that our networks are generating revenues and adding new subscribers. However, we do not recognize any revenues until our portion of the cash flow has been received from the joint venture. This will change as we expect to begin recognizing our portion of the net cash flow on a quarterly basis beginning in the next fiscal year. The Company amortizes its investment in these joint ventures over the life of the contract. The amortization for the quarter was $0.6 million and for the nine months ended December 31, 1998 was $1.7 million."

AmTec, Inc. is a telecommunications company with operations in the People's Republic of China. AmTec is developing 10 cellular networks in Hebei Province (population: 64 million) in partnership with China Unicom (one of China's two licensed cellular telephone operators), NTT International, Itochu, and the Hebei Provincial Government. Six networks are operational with over 35,000 subscribers, and a seventh network is expected to be launched in early 1999. AmTec is now expanding through mergers with other telecommunications companies, including United International Holdings (Nasdaq: UIHIA), Global TeleSystems Group, Inc. (Nasdaq and Easdaq: GTSG) and others. With the closing of the UIH agreement, AmTec will also provide cable television transmission in Hunan Province (population: 64 million) and, with the closing of the GTS agreement, will provide data networking services throughout China.

Note: Forward-looking statements in this press release are necessarily subject to risks and uncertainties that may affect the accuracy of such statements. Such risks may include any political instability in China, any delays in construction of networks, and market acceptance of and demand for the Company's products. For a discussion of such risks, please refer to the Company's Form 10(k) filed with the Securities Exchange Commission for the fiscal year ending March 31, 1998. The Company undertakes no obligation to update such factors or to publicly announce the result of any revisions to the forward-looking statements contained herein. -0-

 AMTEC INC. AND SUBSIDIARIES

 CONSOLIDATED STATEMENTS OF OPERATIONS

                     Nine months ended Dec 31     Quarter ended Dec 31
                        1998        1997            1998        1997

Revenues              $      --   $       --    $     --    $      --

                     -------------------------    --------------------
Expenses:
 Selling, general
  and administrative   3,163,638   3,672,582   1,060,769    1,207,104
 Amortization of GSM
  investment           1,709,845          --     624,048           --
                     -------------------------    --------------------

Total expenses         4,873,483   3,672,582   1,684,817    1,207,104
                     -------------------------    --------------------
Loss from operations  (4,873,483) (3,672,582) (1,684,817)  (1,207,104)

Other income (expense):
 Amortization of stock
  options               (459,374)         --          --           --
 Other - net            (293,812)    (81,721)   (542,632)      21,339
                     ------------------------     --------------------

Total other income
 (expense)              (753,186)    (81,721)   (542,632)      21,339
                     ------------------------     --------------------

Loss before minority
 interest             (5,626,669) (3,754,303) (2,227,449)  (1,185,765)

Minority interest in
 loss of subsidiaries   (941,974)    (49,330)   (187,280)    (272,371)
                     ------------------------     --------------------
Net loss              (4,684,695) (3,704,973) (2,040,169)    (913,394)

Preferred stock
 dividend                614,051     222,891     145,107      114,891
                     ========================     ====================
Loss applicable to
 common shares        (5,298,746) (3,927,864) (2,185,276)  (1,028,285)
                     ========================     ====================

Basic loss per
 common share              (0.20)      (0.13)      (0.08)       (0.04)
                     ========================     ====================

Weighted average
 common shares
  outstanding         26,458,488  30,728,346  25,971,101   29,210,664
                     ========================     ====================

AMTEC INC. AND SUBSIDIARIES

CONSOLIDATED BALANCE SHEETS
                                      Dec. 31, 1998     Mar. 31, 1998

ASSETS:
Current assets
   Cash                               $  5,850,056      $ 10,442,334
     Accounts Receivable                   104,881           114,661
     Prepaid expenses and
      other current assets                 228,129           356,554
                                       -----------      -------------
         Total current assets            6,183,066        10,913,549

     Property and equipment, net           821,265           897,265
     Investment in construction of
      GSM networks, net of
       amortization                     28,518,017        28,461,810
     Other assets                           63,301           113,180
     Deferred expenses                          --             6,916
                                       -----------      -------------

TOTAL ASSETS                          $ 35,585,649      $  40,392,720
                                       ===========      =============

LIABILITIES AND STOCKHOLDERS' EQUITY:
Current liabilities
     Accounts payable                 $    175,663      $     551,705
     Accrued expenses                       47,491            798,376
     Loans payable - shareholders               --          1,452,553
     Bank loans payable within 1 year    4,000,000                 --
     Other current payables              9,737,721         10,234,872
                                       -----------      -------------

       Total current liabilities        13,960,875         13,037,506
                                       -----------      -------------

Bank loans                              17,528,747         20,028,602
Other payables                           1,487,727          1,487,727
Minority interest                               --            941,974
                                       -----------      -------------

TOTAL LIABILITIES                       32,977,349         35,495,809
                                       -----------      -------------

STOCKHOLDERS' EQUITY
Preferred Stock: authorized
 10,000,000 shares
     Series E Convertible Preferred
      Stock:
     $.001 par value; 36.5 and 73
      shares issued and outstanding in
       Dec.31,1998 and March 31,1998,
        respectively.                            1                  1

Common stock: $.001 par value,
 authorized 100,000,000 shares;
  30,008,426 and 26,532,502 issued
   and outstanding at Dec. 31,
    1998 and March 31, 1998,
     respectively                           30,008             26,533
Additional paid-in capital              35,000,867         33,148,529
Accumulated deficit                    (32,693,336)       (27,394,590)
Cumulative foreign currency
 exchange loss                                (690)               613
Non employee deferred option
 cost, net                                      --         (1,378,125)
Warrants                                   271,450            493,950
                                       -----------      -------------
TOTAL STOCKHOLDERS' EQUITY               2,608,300          4,896,911
                                       -----------      -------------

TOTAL LIABILITIES & STOCKHOLDERS'
 EQUITY                               $ 35,585,649      $  40,392,720