For Immediate Release

LAKE FOREST, California – August 21, 2002 – Telenetics Corporation (OTC-BB: TLNT), has signed FIBROTEC Ltd., to be its Representative and Distribution agent for all of China (PRC) and Hong Kong, announced Telenetics' President, David L. Stone. The agreement follows a recent extensive and targeted market survey conducted by Telenetics' senior sales and marketing staff in China. The survey confirmed substantial opportunities in the application of Telenetics' data communications products and systems in areas such as remote monitoring communications including Automated Meter Reading (AMR), Traffic Communications, as well as continuing market for the Sunrise Products acquired from Motorola's MND Division last year.

FIBROTEC is based in Hong Kong and is headed by Willy Leung, the former Director of Market Development for the Asia Pacific region of Motorola's MND Division. Plans call for staffing in Beijing and other growth regions inside China.

According to Mr. Leung, the Telenetics Sunrise Series (formerly Motorola) of analog modem products have maintained their reputation over ten years as among the most efficient and reliable products of their type ever introduced into China. Mr. Leung estimates the quantity of commercial modems purchased annually in China to be as much as 100,000 units.

The relationship with Fibrotec provides the key requirement of on-site representation, which provides Telenetics access to the leading communications distributors and system integrators that formerly represented and sold the Motorola products throughout China. These leading distributors have confirmed an interest in Telenetics' wide variety of wireless communications devices and radios, the industrial grade modem series, fiber optic and microwave products as well as the Sunrise modems product line. They represent expertise and experience with applications in Banking, Military, Transportation, Utility Automation, Oil & Gas distribution, and Telephone Companies. This distribution network has sub-channels that include thousands of individual Resellers, covering every Province in China.

"I am excited we were finally able to secure capable sales representation in China", stated David Stone. "Our previous lack of sales presence in the large and rapidly growing Chinese market had been a weakness we have wanted to address for some time. There exists a substantial installed base of our Sunrise Series product line in China, and we believe that there are many potential customers in this region for both the Sunrise products and our other product lines.

We feel that FIBROTEC represents a good fit for the marketing of our line of products, and we are optimistic that China will likely represent a source of sales growth for Telenetics in 2003."

ABOUT TELENETICS

Based in Lake Forest, California, Telenetics designs, manufactures and distributes wired and wireless data 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. Additional information is available 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 increase its revenues derived from its wireless products in 2002. Other risks are detailed in filings with the Securities and Exchange Commission made from time to time by Telenetics, including the Company's Form 10-KSB for the year ended December 31, 2001, the Company’s Form 10-QSB for the quarter ended March 31, 2002 and the Company's Form 10-QSB filing for the quarter ended June 30, 2002. 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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