For Immediate Release

LAKE FOREST, California — February 4, 2002 — Telenetics Corporation (OTC.BB: TLNT), a provider of wired and wireless data transmission and network access products, announced today that it has successfully completed a $2.0 million financing.

Commenting on this positive development, Shala Shashani Lutz, Chief Executive Officer and President of Telenetics, stated: "This financing will undoubtedly enhance our operations. The infusion of capital will allow us to increase production and therefore be able to react to current and future customer demand in a more timely and efficient manner."

David Stone, Chief Financial Officer of Telenetics, noted: "We have accomplished much during the past year. We were able to reduce our cash operating expenses by more than 30% and show steadily improving gross margins during a year in which revenues grew to approximately 2.5 times the previous year. However, our ability to fulfill orders has been severely impacted by insufficient working capital. Obtaining this long-term financing is a critical step in our efforts to strengthen our balance sheet and address these liquidity issues."

He continued, "I expect that this financing will enable us to further increase our efficiency and allow us to continue to improve gross margins. I believe it clearly enhances our ability to carry out our plans for fiscal 2002."

The financing comes in the form of three-year convertible notes carrying a 6% coupon and 5 year warrants to purchase common stock. The financing was provided primarily by an institutional investor that specializes in providing financing to growing small and mid-capitalization companies.

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, 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 contains forward-looking statements that involve risks and uncertainties. These risks include but are not limited to financial constraints that may affect Telenetics' ability to ship products in a timely manner, increase gross profit margins or become profitable in 2002. Other risks are detailed in filings with the Securities and Exchange Commission made from time to time by Telenetics, including Amendment No. 1 to Telenetics’ Form 10-KSB and the Company’s Form 10-QSB for the period ended September 30, 2001. The Company undertakes no obligation to release publicly any revisions to any forward-looking statements to reflect events or circumstances occurring after the date hereof.

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