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HyperOffice creates new marketing channel with Etelos by syndicating award-winning online collaboration suite

Etelos platform to distribute HyperOffice to companies that private-label Web-based software to business customers

ROCKVILLE, MD. and RENTON, WA., 20 May 2009 — HyperOffice today announced it is carving out a new marketing channel for its online collaboration suite by adding the award-winning business collaboration software to the catalog of Web-based software that Etelos Inc. (OTCBB: ETLO) distributes to banks, retailers and other companies that, in turn, private-label Software as a Service (SaaS) and “cloud computing” tools to small business customers.

Etelos will integrate HyperOffice into the Etelos Syndication Partner Program and the Etelos Platform Suite, an online marketplace that packages, distributes, hosts, bills, markets and supports software developers. This makes it easy for millions of smaller and mid-sized business customers to search, try, buy and use SaaS applications.

“This agreement promises to create a new marketing channel for HyperOffice,” said Farzin Arsanjani, president of HyperOffice. “As one example, the small-business customers of banks and credit-card companies prefer to cash in their points for technology that helps their businesses grow, instead of toasters and microwaves. The savvy organizations they get financial services from know this — and those organizations drive their own success by private-labeling, packaging and deploying tools that help their business customers run and grow. That’s what HyperOffice delivers. And the Etelos platform puts HyperOffice within easy reach.”

About Etelos Inc.

Etelos, http://www.etelos.com, is a Web app distribution platform delivering Web apps for businesses. Unlike other cloud computing and Platform-as-a-Service (PaaS) solutions, Etelos enables software manufacturers to migrate existing applications or create new applications, then package, distribute, host, bill, market and support their Software-as-a-Service (SaaS) enabled application with their own application marketplace. Etelos™, the Etelos Platform™, EASE™, Etelos App Server™, Etelos VE™, Etelos Cloud™ and Etelos Marketplace™ are trademarks of Etelos, Inc.; other trademarks are the property of their respective owners.

About HyperOffice

HyperOffice, http://www.hyperoffice.com, is an award-winning online collaboration and messaging solution that makes it easier for owners, employees, clients, partners and suppliers of growing businesses to collaborate, communicate, manage projects, share documents, schedule meetings and tasks, and manage information, anytime, from work, from home, while traveling, using any Internet connection. Delivered as “software as a service,” it operates as an integrated Microsoft Exchange alternative as well as SharePoint alternative – with all the functionality but developed and priced for small to mid-sized companies.

HyperOffice Inc. is a leading provider of business collaboration software for growing organizations delivered under the cloud computing model. Launched in 1998, the company offers a simple and affordable suite of Extranet and Intranet software that provide new and growing businesses essential tools to collaborate, communicate, and manage information from any browser running on any platform.

Etelos contact

Eroc Bertp
Etelos Inc.
425-753-2222
Press@Etelos.com

HyperOffice contact:

Farzin Arsanjani
HyperOffice Inc.
http://www.hyperoffice.com
press@hyperoffice.com

Agency contact:

Steve Leon
Technopolis® Communications Inc.
http://www.technopolis.com
sl@technopolis.com
512-288-0950

"Safe Harbor" Statement under the Private Securities Litigation Reform Act of 1995: Statements in this press release regarding Etelos' business that are not historical facts may be "forward-looking statements" that involve risks and uncertainties. Forward-looking statements include, among other things, statements concerning the company's partnership with others, the future financial performance of our company, the acceptance of our products and services, the success and timeliness of our product and platform roll-out and other statements qualified by words such as "anticipate," "believe," "intend," "may" and other words of similar import. These statements are neither promises nor guarantees, but involve risks and uncertainties that could cause actual results to differ materially from those set forth in the forward-looking statements, including, without limitation: The Etelos Syndication Partner Program and any offerings by Syndication Partners on SaaS marketplaces based upon the Etelos Platform Suite. For a discussion of such risks and uncertainties, which could cause actual results to differ from those contained in the forward-looking statements, see "Risk Factors" in the Company's reports that Etelos files periodically with the Securities and Exchange Commission. All forward-looking statements are qualified in their entirety by this cautionary statement, and Etelos undertakes no obligation to update publicly any forward-looking statement for any reason, except as required by law, even as new information becomes available or other events occur in the future. 
Founded in 1998, HyperOffice is a market leader in cloud collaboration and communication software for small and medium sized businesses. We provide the most comprehensive suite of solutions developed over more than 12 years of understanding your growing business needs. HyperOffice's capabilities include customer portal & intranet software, online document management, online project management, shared calendars, contact management software, business email, Outlook sharing and synchronization, push email and mobile collaboration, online database software and web forms and much more - offered as an integrated, easy to use solution accessible over any web connected PC, Mac, or mobile device. HyperOffice is also a viable Microsoft Sharepoint alternative and Microsoft Exchange alternative for growing companies looking for the power of enterprise class messaging and collaboration - but without the associated costs and hassles.
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