For Immediate Release

LAKE FOREST, California – May 13, 2002 – Telenetics Corporation (OTC-BB: TLNT), a provider of wired and wireless data communications products for customers worldwide, today reported financial results for the quarter ended March 31, 2002

Comparison of Results for Quarters Ended March 31, 2002 and 2001

Net sales for the quarter ended March 31, 2002 were approximately $4.2 million, an increase of 119% over the $1.9 million in net sales for the quarter ended March 31, 2001, and flat as compared to the quarter ended December 31, 2001. Earnings before interest, taxes, depreciation and amortization ("EBITDA") was a record $826,000, or $0.03 per share, for the quarter ended March 31, 2002, as compared to a negative EBITDA of ($1.8 million), or ($0.11) per share, for the quarter ended March 31, 2001.

Gross profit for the quarter ended March 31, 2002 was approximately $1.4 million, an increase of 239% over the $407,000 of gross profit for the quarter ended March 31, 2001. Gross margin for the quarter ended March 31, 2002 was 32.5% of net sales, an improvement of 11.5% over the gross margin of 21.0% for the quarter ended March 31, 2001.

Net loss for the quarter ended March 31, 2002 improved to ($27 thousand), or ($0.00) per share, as compared to a net loss of ($2.6 million), or ($0.16) per share, for the quarter ended March 31, 2001. Net loss and EBITDA for the quarter ended March 31, 2002 include an extraordinary gain of $713,000 relating to negotiated discounts on certain litigation obligations and accounts payable.

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 unusually heavy amortization and non-cash expense burdens, some of which are described 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.

Commenting on the Company, Shala Shashani Lutz, Chief Executive Officer and President of Telenetics stated, "Although revenues did not meet our expectations in the first quarter, we believe that Telenetics has a firm foundation of well-known products that are effective in customers uses worldwide. The existence of our international reseller network can enhance our communications with customers, our product support and our ability to reach customers. This can serve our twin focus on improving operating results from our on-going products together with assessing market demand for additional products. It is our intention to improve our utilization of this network in our pursuit of new business."

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.

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FINANCIAL HIGHLIGHTS

Quarter Ended (Unaudited) March 31, 2002 March 31, 2001 Net Sales $ 4,241,000 $ 1,939,000 Gross Profit (loss) 1,379,000 407,000 Loss from Operations (141,835) (2,102,000) Net Loss Before Extraordinary Gains (739,000) (2,564,000) Extraordinary Gains 713,000 — Net Loss (27,000) (2,565,000) Loss Per Common Share Before Extraordinary Gains $ (0.03) $ (0.16) Extraordinary Gains 0.03 — Dividend effect — — Basic and Diluted $ (0.00) ========== $ (0.16) ========== Weighted Average Shares Outstanding Basic and Diluted 27,592,099 ========== 16,604,209 ==========

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CALCULATION OF EBITDA

Quarter Ended (Unaudited) March 31, 2002 March 31, 2001 Net Loss $ (27,000) $ (2,565,000) Interest 597,000 412,000 Depreciation 78,000 76,000 Amortization 177,000 299,000 Taxes 1,000 1,000 EBITDA $ 826,000 ========== $ (1,777,000) ========== EBITDA per common share Basic and Diluted $ 0.03 ========== $ (0.11) ========== Weighted Average Shares Outstanding Basic and Diluted 27,592,099 ========== 16,604,209 ==========

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, and the Company's Form 10-KSB for the year ended December 31, 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. Telenetics 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 to be contained in the Company's upcoming Form 10-QSB filing for the quarter ended March 31, 2002.

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