EXHIBIT 99.1 Orsus Xelent Technologies Reports Third Quarter 2006 Results Conference call scheduled Thursday, November 16, 2006 at 9:30am EST US caller dial-in number: 1-866-365-4409 International caller dial-in number: 1-303-248-9656 Caller access code: 3478399 NEW YORK, NY-- --November 15, 2006 -- Orsus Xelent Technologies, Inc. (OTC BB: ORXT), an emerging designer and manufacturer of award-winning mobile phones for the Asian market, reported today the Company's financial results for the quarter ended September 30, 2006. Revenues were $45.9 million for the nine months ended September 30, 2006, representing a sharp increase of 176.45% as compared to the same period in 2005. Revenues for the three months ended September 30, 2006 were $20.5 million, representing a 55.92% increase over the same period in 2005. After experiencing reform in the cellular phone market in the first half of 2005, the Company adjusted its business model, market position and strategy, improved its technology, and the quality of its products. The Company believes that because of these efforts it is better prepared to take advantage of a rejuvenated cellular phone market in the Public's Republic of China. For the nine months ended September 30, 2006, gross profit was $8.2 million, which represents an increase of $5.3 million or 158.39% as compared to the gross profit of $3.3 million for the same period in 2005. The gross profit in the third quarter of 2006 was $3.8 million representing 6.33% growth over the second quarter of 2006 and a slight decline of 0.40%, as compared with the third quarter of 2005. Net income for the nine months ended September 30, 2006 was $4,647,000, or 10.12% of revenue, which represents a 223% increase compared to the same period in 2005. Net income for the three months ended September 30, 2006 was $2,366,000, which represents 51% of total net profit for the first nine months of 2006. The net income for the third quarter 2006 represents an increase of 20.84%, compared to the same period in 2005. The substantial increase in net profit is due to the Company's adjustment of its marketing strategy and improvements in the cellular phones market in this quarter. "This was a very robust quarter for us. Our CDMA product revenues were up considerably and our new marketing strategy produced superb results. We continue to be optimistic in our profit expectations for the third quarter," said Xavier Xin Wang, President and CEO of Orsus Xelent. The Company has scheduled a conference call for Thursday, November 16, 2006 at 9:30am Eastern Standard Time. Dial-in numbers are as follows: U.S. callers: 1-866-365-4409 International callers: 303-248-9656 Pass code: 3478399 About Orsus Xelent Technologies Incorporated in the state of Delaware and headquartered in Beijing, China, Orsus Xelent Technologies, Inc. is an emerging designer and manufacturer of award-winning mobile phones for the Asian market, primarily the People's Republic of China (PRC). The company's business comprises the design of mobile phones, related digital circuits, and software development, and is a recognized pioneer in mobile phone integration technology. It introduced the region's first wristwatch-style cellular phone, and it continues to break new ground with state-of-the-art phones that include advanced features like finger print recognition and touch-screen displays. Since the company's launch in 2004, it has established "Orsus" as a popular brand and achieved a significant share of the world's largest mobile phone market. It maintains more than 179 service call centers across the PRC, with additional offices in New York, Shanghai, Hong Kong, Shenzhen, and Tianjin. For more information, please visit: www.orsus-xelent.com. Information Regarding Forward-Looking Statements Except for historical information contained herein, the statements in this Press Release are forward-looking statements that are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Forward-looking statements involve known and unknown risks and uncertainties, which may cause our actual results in future periods to differ materially from forecasted results. These risks and uncertainties include, among other things, product demand, market competition, and risks inherent in our operations. These and other risks are described in our filings with the Securities and Exchange Commission. Orsus Xelent Technologies, Inc. Condensed Consolidated Statements of Operations (Unaudited) (Unaudited) Three months ended Nine months ended September 30, September 30, -------------------------- -------------------------- 2006 2005 2006 2005 US$'000 US$'000 US$'000 US$'000 Operating revenues: 20,525 13,164 45,901 16,604 ----------- ----------- ----------- ----------- Operating expenses: Cost of sales 16,716 10,358 37,879 13,257 Sales and marketing 140 430 926 1,131 General and administrative 1,194 200 1,883 769 Research and development 40 195 187 337 Depreciation 24 89 149 164 ----------- ----------- ----------- ----------- Total operating expenses 18,114 11,272 41,024 15,658 ----------- ----------- ----------- ----------- Operating profit 2,411 1,892 4,877 946 Interest expense (41) -- (70) (25) Other income, net (4) 89 1 541 ----------- ----------- ----------- ----------- Income before income taxes 2,366 1,981 4,808 1,462 Income taxes -- (23) (160) (23) ----------- ----------- ----------- ----------- Net income 2,366 1,958 4,648 1,439 Other comprehensive income -- -- -- -- ----------- ----------- ----------- ----------- 2,366 1,958 4,648 1,439 =========== =========== =========== =========== Earnings per share: Basic 0.08 0.07 0.16 0.05 =========== =========== =========== =========== Weighted average number of common stock outstanding 29,756,000 29,756,000 29,756,000 29,756,000 =========== =========== =========== =========== Orsus Xelent Technologies, Inc. Condensed Consolidated Balance Sheet As of As of September 30, December 31, 2006 2005 US$'000 US$'000 (Unaudited) ASSETS Current assets Cash and cash equivalents 88 2,974 Accounts receivable, net of allowance for doubtful accounts of $555,000 ($149,000 in 2005) 31,527 12,034 Inventories 2,361 4,460 Trade deposits paid 3,112 10,580 Advance to third party 125 -- Other current assets 125 182 ------------- ------------- Total current assets 37,338 30,230 Property, plant and equipment, net 782 781 ------------- ------------- Total assets 38,120 31,011 ============= ============= LIABILITIES AND STOCKHOLDERS' EQUITY Current liabilities Short-term bank loan 2,477 -- Accounts payable - Trade 11,764 7,939 Accrued expenses and other accrued liabilities 3,474 2,238 Trade deposits received 260 5,432 Due to directors 320 320 Provision for warranty 57 122 Taxes payable 181 21 ------------- ------------- Total current liabilities 18,533 16,072 ------------- ------------- Commitments and contingencies Stockholders' equity Preferred stock, US$0.001 par value: Authorized: 100,000,000 shares, no shares issued Common stock and paid-in capital, US$0.001 par value: Authorized: 100,000,000 shares Issued and outstanding: 29,756,000 shares as of September 30, 2006 and as of December 31, 2005 30 30 Additional paid-in capital 2,484 2,484 Dedicated reserves 1,042 1,042 Other comprehensive income 349 349 Retained earnings 15,682 11,034 ------------- ------------- Total stockholders' equity 19,587 14,939 ------------- ------------- Total liabilities and stockholders' equity 38,120 31,011 ============= ============= For more information contact: Orsus Xelent Technologies, Inc. Xavier Xin Wang President and CEO US: Tel 212-719-7535 Fax 212-790-9594 PRC: Tel 010-85653777 Fax 010-85653666 RedChip Companies, Inc./Aurelius Consulting Group, Inc. 1-800-REDCHIP (407) 644-4256 info@aurcg.com - -------------- www.runonideas.com - ------------------ www.redchip.com - ---------------