June 1, 2010, 11:15 AM

Etelos Becomes a Yahoo! Small Business Reseller

(Page 2 of 2)

Etelos is the developer of a Web app distribution platform for 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 to create new applications, then to package, distribute, host, bill, market and support their Software-as-a-Service (SaaS) enabled applications through a number of third-party branded application marketplaces, all based on the Etelos Platform Suite. Etelos(TM), the Etelos Platform Suite(TM), EASE(TM), Etelos App Server(TM), Etelos VE(TM), Etelos Cloud(TM) and Etelos Marketplace(TM) are trademarks of Etelos, Inc.; other trademarks are the property of their respective owners. For more information about Etelos, please visit Etelos.com.

"Safe Harbor" Statement under the Private Securities Litigation Reform Act of 1995: Statements in this press release regarding Etelos' business which 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: Our partnerships with this Partner or others, the future financial performance of our company, the acceptance of our products and services, the success and timeliness of our products and platform roll-out. 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.

Etelos, Inc.

Eric Berto, 425-753-2222

press@etelos.com

or

Salzwedel Financial Communications, Inc.

Jeff Salzwedel, 503-722-7300

jeff@sfcinc.com

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