For Immediate Release

LAKE FOREST, California — January 8, 2002 -- Telenetics Corporation (OTC-BB: TLNT), a wired and wireless data transmission and network access products provider, today reported that the comprehensive restructuring plan implemented by the Company during 2001, along with a significant increase in its net sales over the previous year, has positioned the Company to become profitable.

Commenting on these positive developments, Shala Shashani Lutz, Chief Executive Officer and President of Telenetics stated, "The significant steps taken in the second half of 2001 to reduce expenses and streamline our operations have paid off. Despite deteriorating global economic conditions in 2001, our net sales have increased, margins have improved and we have become profitable from operations.

David Stone, Chief Financial Officer of Telenetics noted: "During the course of the year, we were able to reduce our cash operating expenses by more than 30% while our revenues grew approximately 2.5 times over the previous year. Our gross margins have steadily increased from approximately 21% in the first quarter of 2001 to approximately 32% in the third quarter and we anticipate further improvement in the fourth quarter of 2001 and in fiscal 2002."

Ms. Lutz also stated: "Fiscal 2001 was an eventful year for Telenetics. Despite our cost-cutting measures, we continued to support the growing product requirements of our customers and successfully managed the challenging task of sustaining our rapid and significant growth.

"We are now selling our products to customers in over 70 countries. We have introduced new wireless data products and believe that our revenues from this portion of our business will continue to increase. We are also taking steps to bring in additional capital to finance our future growth.

"I am excited about Telenetics’ prospects as we enter fiscal 2002."

ABOUT TELENETICS

Based in Lake Forest, California, Telenetics is a leader in the design, production and distribution of wired and wireless data transmission and network access products and customer-specific communications products for customers worldwide. Telenetics offers a wide range of industrial grade modems and wireless products, systems and services for connecting its customers to end-point devices such as meters, remote terminal units, traffic and industrial controllers and remote sensors. Telenetics also provides high-speed communications products for complex data networks used by financial institutions, air traffic control systems and public and private wireless network operators. The Company is developing an advanced wireless data network enabling a wide range of customers to reliably and economically communicate through the Internet with their remote devices. Additional information may be obtained at www.telenetics.com.

Safe Harbor Statement under the Private Securities Litigation Reform Act of 1995

This release may contain forward-looking statements that involve risks and uncertainties. Important factors, which could cause actual operating results to differ materially from those in the forward-looking statements, include, without limitation, risks that during FY2002 Telenetics may not be successful in improving profit margins and/or reducing operating expenses so as to, among other things, allow Telenetics to become profitable and the risk that Telenetics may not successfully expand its wireless product and service offerings. Other risks are detailed in filings with the Securities and Exchange Commission made from time to time by Telenetics, including Telenetics’ Form 10-KSB for the fiscal year ended December 31, 2000, Amendment No. 1 to Telenetics’ Form 10-KSB and the Company’s Form 10-QSB for the period ended June 30, 2001 and the Company's Form 10-QSB for the period ended September 30, 200. The Company undertakes no obligation to release publicly any revisions to any forward-looking statements to reflect events or circumstances after the date hereof to reflect the occurrence of unanticipated events.

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