Orsus Xelent Announces 2010 Third Quarter Results; Achieves Small Gain on Substantially Reduced Revenues

Orsus Xelent Technologies, Inc.

 (NYSE Amex: ORS), a designer and manufacturer of award-winning mobile phones for the Asian market, today announced results for its 2010 third quarter and nine months ended September 30, 2010.

Revenues in this year's third quarter decreased significantly year over year from $19,125,000 to $5,907,000. The Company achieved a gain in the quarter of $117,000 compared with net income of $1,370,000 or $.05 per share in the third quarter last year.

For the first nine months of 2010, the Company reported revenues decreased to $19,971,000 from $62,181,000 in the same period year over year. The Company incurred a net loss on the lower revenues of ($585,000), compared to net income of $5,812,000, or $.19 per share, for the same period in 2009.

The Company said results in the recent quarter were affected by a decline in demand in the market for low-priced, non 3-G products, a major focus of the Company, as many of the larger telecom companies have focused on gaining market share in the rural areas of China. Additionally, the Company's distributors experienced a decline in the number of anticipated large orders from their major customers.

About Orsus Xelent Technologies, Inc.

Incorporated in the State of Delaware and headquartered in Beijing, China, Orsus Xelent Technologies, Inc. is an emerging designer and manufacturer of award-winning mobile phones for the Asian market, primarily the People's Republic of China ("PRC"). The Company's business encompasses the design of mobile phones, related digital circuits, and software development, and it is a recognized pioneer in mobile phone integration technology. It introduced the region's first wristwatch-style cellular phone, and it continues to break new ground with state-of-the-art phones that include advanced features such as fingerprint recognition and touch-screen displays. The Company also is focused on developing and marketing, under its Proxlink trademark, special application mobile phones for specialized users in a wide variety of professions in business and government. Since the Company's launch in 2004, it has established "Orsus" as a popular brand and achieved a significant share of the world's largest mobile phone market. It maintains more than 179 service call centers across the PRC, with additional offices in Shanghai, Hong Kong, Shenzhen, and Tianjin. For more information, please visit the Company's web site: www.orsus-xelent.com.

Information Regarding Forward-Looking Statements

Except for historical information contained herein, the statements in this Press Release are forward-looking statements that are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Forward-looking statements involve known and unknown risks and uncertainties, which may cause our actual results in future periods to differ materially from forecasted results. These risks and uncertainties include, among other things, product demand, market competition, and risks inherent in our operations. These and other risks are described in our filings with the Securities and Exchange Commission.

              Orsus Xelent Technologies, Inc. and Subsidiaries
         Consolidated Statements of Income and Comprehensive Income
         (In thousands, except number of shares and per share data)
                                 (Unaudited)

                                Three months ended       Nine months ended
                                  September 30,            September 30,
                             -----------------------  ----------------------
                                 2010        2009        2010        2009
                             -----------  ----------  ----------  ----------
Net sales                   $      5,907 $    19,125 $    19,971      62,181

Cost of sales                      5,474      17,053      18,466      53,928
                             -----------  ----------  ----------  ----------

Gross profit                         433       2,072       1,505       8,253
                             -----------  ----------  ----------  ----------

Operating expenses:
Selling expenses                      21          40          83         213
General and administrative
 expenses                             70         164         212         533
Research and development
 expenses                              4           4          13          32
Depreciation and
 amortization                          6          12          21          54
Allowance for doubtful
 accounts                              -           -       (251)           -
                             -----------  ----------  ----------  ----------
Total Operating Expenses             101         220          78         832
                             -----------  ----------  ----------  ----------

Income from operations               332       1,852       1,427       7,421

Other income/(expenses)
Interest expense                   (215)       (270)     (1,005)       (758)
Other (expenses)/income,
 net                                   -           -     (1,252)          17
                             -----------  ----------  ----------  ----------

(Loss)/income before income
 tax expense                         117       1,582       (830)       6,680

Income tax
 (expenses)/benefit
Current tax expense                    0         212           0         868
Deferred taxes benefit                 -           -         245           0
                             -----------  ----------  ----------  ----------

Net (loss)/income                    117       1,370       (585)       5,812

Other comprehensive income
Foreign currency
 translation adjustment              726          59         917         302
                             -----------  ----------  ----------  ----------

Comprehensive (loss)/income $        843       1,429 $       332       6,114
                             ===========  ==========  ==========  ==========
(Loss)/earnings per share:
Basic and diluted           $       0.03 $      0.05 $      0.01 $       0.2
                             ===========  ==========  ==========  ==========

Weighted average number of
 common shares outstanding
 - basic and diluted          30,256,000  29,756,000  30,256,000  29,756,000
                             ===========  ==========  ==========  ==========

PRC: Orsus Xelent Technologies, Inc. Guoji Liu CEO Tel: [phone] Fax: [phone] US: Ken Donenfeld [e-mail] Tel: [phone] Fax: [phone]