For Immediate Release

LAKE FOREST, California – November 4, 2003 – Telenetics Corporation (OTC-BB: TLNT), a provider of wired and wireless data communications products for customers worldwide, today reported financial results for the three and nine months ended September 30, 2003.

Comparison of Results for Quarters Ended September 30, 2003 and 2002

Net sales for Telenetics’ third quarter ended September 30, 2003 were approximately $3.0 million, a decrease of $355,000, or 10.5%, as compared to $3.4 million for the second quarter ended June 30, 2003, and a decrease of $1.5 million, or 33.3%, as compared to the $4.5 million in net sales for the quarter ended September 30, 2002. Earnings before interest, taxes, depreciation and amortization ("EBITDA") was $2.3 million, or $0.05 per basic share and $.04 per diluted share, an improvement of $593,000 as compared to EBITDA of $1.7 million, or $0.04 per both basic and diluted share for the second quarter ended June 30, 2003, and an improvement of $1.9 million as compared to EBITDA of $398,000 or $0.01 per both basic and diluted share for the quarter ended September 30, 2002.

Gross profit for the quarter ended September 30, 2003 was approximately $1.1 million, a decrease of $217,000, or 17.0%, as compared to $1.3 million for the second quarter ended June 30, 2003, and a decrease of $134,000, or 11.3%, as compared to gross profit of $1.2 million for the quarter ended September 30, 2002. Gross margin for the quarter ended September 30, 2003 was 35.1%, a decline of 2.7% of net sales as compared to the gross margin of 37.8% for the second quarter ended June 30, 2003 and an improvement of 8.7% of net sales as compared to the gross margin of 26.4% for the quarter ended September 30, 2002.

Income from operations for the quarter ended September 30, 2003 was approximately $2.2 million, an improvement of $592,000 as compared to $1.6 million for the second quarter ended June 30, 2003, and an improvement of $2.0 million as compared to the $187,000 for the quarter ended September 30, 2002.

Net income for the quarter ended September 30, 2003 was $1.7 million, or $0.04 per basic share and $0.03 per diluted share, an improvement of $595,000 as compared to net income of $1.1 million, or $0.03 per basic and diluted share, for the second quarter ended June 30, 2003, and an improvement of $2.0 million as compared to the net loss of ($278,000), or ($0.01) per basic and diluted share for the quarter ended September 30, 2002. Net income, income from operations and EBITDA for the quarter ended September 30, 2003 includes a $2.3 million gain on extinguishment of debt primarily due to the settlement of litigation with the Company’s former contract manufacturer, Corlund Electronics. Net loss, income from operations and EBITDA for the quarter ended September 30, 2002 include a gain on extinguishment of debt of $187,000 relating to negotiated discounts on certain litigation obligations and accounts payable.

Comparison of Results for the Nine Months Ended September 30, 2003 and 2002

Net sales for the nine months ended September 30, 2003 were approximately $8.7 million, a decrease of $3.9 million, or 30.9%, as compared to the $12.6 million in net sales for the nine months ended September 30, 2002. EBITDA for the nine months ended September 30, 2003 was approximately $3.7 million, or $0.09 per basic share and $.08 per diluted share, an improvement of $2.7 million as compared to EBITDA of $1.0 million, or $0.04 per basic and diluted share, for the nine months ended September 30, 2002.

Gross profit for the nine months ended September 30, 2003 was approximately $3.0 million, a decrease of $727,000, or 19.5%, as compared to the $3.7 million of gross profit for the nine months ended September 30, 2002. Gross margin for the nine months ended September 30, 2003 was 34.3%, an improvement of 4.8% of net sales over the gross margin of 29.5% for the nine months ended September 30, 2002.

Income from operations for the nine months ended September 30, 2003 was $3.5 million, an improvement of $3.2 million as compared as compared to $290,000 for the nine months ended September 30, 2002.

Net income for the nine months ended September 30, 2003 was $2.0 million, or $.05 per basic share and $0.04 per diluted share, an improvement of $3.2 million as compared to the net loss of ($1.2 million), or ($0.05) per basic and diluted share, for the nine months ended September 30, 2002. Net income, income from operations and EBITDA for the nine months ended September 30, 2003 includes a $3.8 million gain on extinguishment of debt primarily due to the settlement with Corlund Electronics. Net income, income from operations and EBITDA for the nine months ended September 30, 2002 included gains of $1.2 million, relating to negotiated discounts on certain litigation obligations and accounts payable.

Net cash provided by operating activities at September 30, 2003 was $3.7 million, an improvement of $5.0 million, as compared to net cash used in operating activities of ($1.3 million) at September 30, 2002. However, net cash provided by operating activities for the nine months ended September 30, 2003 includes a payment of approximately $2 million received from one of the Company’s significant customers for which the Company has neither records of amounts due and payable, nor records of confirmed orders for the delivery of product. The Company believes that all or a significant portion of this customer payment will need to be refunded.

Commenting on Telenetics’ third quarter results, David Stone, President and Chief Financial Officer said, "The third quarter was notable for the substantial progress we made in strengthening our balance sheet and reducing our liquidity risk by improving our working capital position and finalizing the settlement of two lawsuits."

Mr. Stone also stated, "During this quarter, we continued our commitment to increasing new product development activity. The focus of our product development efforts during the third quarter continued to be aimed at digitally-based wireless data communications primarily for automatic meter reading ("AMR") applications. We believe that we have made substantial progress during the third quarter toward our planned introduction of additional products that are targeted at this market. We also believe that the wireless AMR market represents the best opportunity for our growth for in the near future."

Telenetics' third quarter 2003 earnings conference call will be held on Wednesday, November 5, 2003 at 1:30 P.M. Pacific Standard Time. Representing the Company on the call will be David L. Stone, President and Chief Financial Officer and Michael N. Taglich, Chairman.

The dial in number is 800-556-3831 (or 972-512-0694 for international callers) and the participant passcode is 00101. The call will be simultaneously webcast on the Internet and is accessible at www.telenetics.com.

A replay will be available beginning after 7:00 pm PDT on November 5, 2003. To access the replay, dial 800-736-7935 (no passcode is required). The webcast will also be archived and available on the Internet at www.telenetics.com.

Selection and Use of EBITDA as Measure of Financial Performance

The Company’s management has selected and standardized its selection of EBITDA as a measure of Company financial performance for several reasons. The Company believes that a discussion of EBITDA is relevant because it can provide the reader and Company management with a more accurate and understandable picture of period-to-period changes in the Company’s operating performance by eliminating the effects of the Company's heavy non-cash expense burdens, which are reflected in the table below. The Company’s management believes these burdens generally have little contemporaneous relevance to financial reporting periods. The Company’s management also selected EBITDA as a measure of Company financial performance because EBITDA is a common and widely recognized measure used by financial institutions to evaluate a company's financial performance under various circumstances. Each of the elements the Company used in determining EBITDA have been taken from financial statement information prepared in conformity with accounting principles generally accepted in the United States of America ("GAAP"). The tables below outline these elements. EBITDA should be viewed in addition to, and not as an alternative for, the Company’s reported results prepared in accordance with GAAP.

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.

FINANCIAL HIGHLIGHTS

Quarter Ended (Unaudited) September 30, 2003 September 30, 2002 Net sales $ 3,012,606 $ 4,513,480 Gross Profit 1,055,988 1,190,385 Income from Operations 2,227,376 187,483 Net Income (loss) 1,741,201 (277,734) Earnings (loss) per common share: Basic $ 0.04 $ ( 0.01) Diluted $ 0.03 $ ( 0.01) Common shares used in computing income (loss) per common share: Basic 47,597,799 28,462,176 Diluted 52,410,925 28,462,176

Nine Month Ended (Unaudited) September 30, 2003 September 30, 2002 Net sales $ 8,741,111 $ 12,644,610 Gross Profit 3,002,078 3,729,138 Income from Operations 3,480,401 290,442 Net Income (loss) 2,024,956 (1,189,592) Earnings (loss) per common share: Basic $ 0.05 $ (0.05) Diluted $ 0.04 $ (0.05) Common shares used in computing income (loss) per common share: Basic 43,753,269 28,023,394 Diluted 45,188,189 28,023,394

CALCULATION OF EBITDA

Quarter Ended (Unaudited) September 30, 2003 September 30, 2002 Net income (loss) $ 1,741,201 $ (277,734) Interest 487,343 468,994 Depreciation 63,936 83,011 Amortization 13,736 124,151 Taxes -- -- EBITDA $ 2,306,216 $ 398,422 EBITDA per common share Basic $ 0.05 $ (0.01) Diluted $ 0.04 $ (0.01) Common shares used in computing income (loss) per common share: Basic 47,597,799 28,462,176 Diluted 52,410,925 28,462,176

Nine Months Ended (Unaudited) September 30, 2003 September 30, 2002 Net income (loss) $ 2,024,956 $ (1,189,592) Interest 1,458,688 1,518,126 Depreciation 198,025 244,599 Amortization 41,207 475,205 Taxes 800 800 EBITDA $ 3,723,676 $ 1,049,138 EBITDA per common share Basic $ 0.09 $ 0.04 Diluted $ 0.08 $ 0.04 Common shares used in computing income per common share: Basic 43,753,269 28,023,394 Diluted 45,188,189 28,023,394

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

This release contains forward-looking statements that involve risks and uncertainties. With the exception of historical information, the matters discussed in this press release, including without limitation, the extent to which the Company must return all or a portion of the amount it received from a significant customer, the ability of Company to expand through sales of its wireless AMR products and the ability of the Company to continue to fund its product development activities to ensure that it continues to produce products that meet the demands of its customers. Actual future results of Telenetics could differ from those statements. These risks include but are not limited to financial constraints that may affect Telenetics ability to increase revenue, the ability to ship current backlog, the continued demand for Telenetics’ products despite worldwide economic conditions, the ability to have and maintain satisfactory deliveries of products from Telenetics’ contract manufacturers, changes in governmental regulations and policies, the emergence of competitive products and unforeseen technical issues. 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, 2002 and the Company’s Form 10-QSB for the quarter ended September 30, 2003. 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. The Company encourages current and prospective investors to compare the summary of "pro forma" financial presentation contained in this release with the results to be reported on GAAP-based financial statements contained in the Company's Form 10-QSB filing for the quarter ended September 30, 2003.

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