Reality Wireless Networks and IElement, Inc. Agree to Merge [4th August 2003]

CAMPBELL, Calif., Aug 4, 2003 /PRNewswire-FirstCall via COMTEX/ -- Reality Wireless Networks, Inc. (OTC Bulletin Board: RWNT.OB) (the "Company" or "Reality Wireless") announced today its intention to merge with next generation communications services and systems provider, IElement, Inc. of Marina del Rey, CA. Reality recently announced a joint venture with IElement, Inc.'s D.B.A., ICC Internet, the nature of which enables Reality Wireless Networks to seek revenue opportunities in most major cities, among other locations, major metro areas of northern and southern California, Dallas, Chicago, New York, Houston, Austin, San Antonio, Atlanta, Las Vegas and Phoenix. Additionally, the agreement allows Reality Wireless the ability to provide integrated fixed wireless products such as local and long distance services as well as their core wireless broadband services through a single connection. Reality will exchange $8.0 million dollars in restricted common stock based upon the share price of Reality Wireless Networks at the time of the merger which will be subject to a definitive agreement, and certain additional funding requirements. IElement, Inc. generates monthly revenue of approximately $500,000 revenues and $60,000 in EBITDA (earnings before interest, taxes, depreciation, and amortization). Ivan Zweig, CEO of IElement, Inc. stated, "The more we discussed the nature and scope of our recent joint venture, the more it made economic sense to combine the two companies under one defined strategy. We can quickly expand into a regional next generation fixed wireless services provider offering voice, data, and multimedia broadband services from a single services provider. The wireless component will help us manage our network costs and address the consumer market as well." The Companies expect to complete the merger within 120 days.

About Reality Wireless Networks (http://www.realitynetworks.com)

Reality Wireless Networks offers broadband wireless services through hybrid networks including fixed wireless, 802.11, and fiber to markets either underserved or not served by DSL and cable modem technologies. Currently operational in California, the company has targeted markets including residential, SOHO, and multi-unit apartment complexes across the country. At the corporate level, Reality Wireless Networks is actively pursuing an acquisition growth strategy. For more information, please contact: ir@realitynetworks.com

About IElement, Inc. -- IElement, Inc. is a privately held, advanced communications company for small businesses by providing High Speed Internet Access *Web Hosting *Web Design *System Integration and Networking *Local Dial Tone and *Long Distance to the small businesses in to seek revenue opportunities in most major cities because of IElement's existing network which includes, among other locations, major metro areas of northern and southern California, Dallas, Chicago, New York, Houston, Austin, San Antonio, Atlanta, Las Vegas and Phoenix. The company creates innovative solutions built on strategic alliances with the premier communications, Internet, long distance and local dial tone providers.

NOTE REGARDING FORWARD-LOOKING STATEMENTS

Certain statements in this press release constitute forward-looking statements within the meaning of the Securities Exchange Act of 1934, as amended. Such forward-looking statements involve known and unknown risks, uncertainties and other factors that may cause the actual results, performance or achievements of Reality Wireless Networks, Inc. (collectively, referred to as "Reality," "we," "us," "our," and/or the "company_), or developments in the company's industry, to differ materially from the anticipated results, performance or achievements expressed or implied by such forward-looking statements. Such factors include, but are not limited to: the company's limited operating history, lengthy sales cycles, the company's dependence upon a relative concentration of customers, competition, product development risks and risks of technological change, dependence on selected vertical markets and third-party relationships and suppliers, and other risks and uncertainties.

SOURCE Reality Wireless Networks, Inc.

Michael Long of Company Reporter, Inc., +1-281-330-6178, or
Mike@companyreporter.com, for Reality Wireless Networks, Inc.