Astrata Group Incorporated Closes Private Placement for $1.75 Million

Astrata Group Incorporated
(OTC Bulletin Board: ATTG), a provider of location-based technologies and
services, today announced that it has closed a private placement in which it
raised $1.75 million in gross proceeds from institutional investors and that
it has received $700,000 as the first of three installments. The Company
intends to use the net proceeds for general corporate purposes and working
capital. The private placement was made by H.C. Wainwright & Co., Inc. acting
as placement agent for the sale of the securities.
Tony Harrison, Astrata's Executive Chairman of the Board, said, "We are
extremely pleased with the confidence the investment community has shown in
Astrata's business plan. In the last several months, we have shifted our
business model to a recurring revenue paradigm from a one-time-sale approach.
We have seen our telematics sales increase upwards of 55% in the second
quarter of fiscal 2006 compared to the previous quarter, with our geomatics
business line rising by 25% in the same period. Our financial results have
convinced the market that our strategic shift was well-planned and well-
executed, and we intend to use these funds to continue our global expansion."
He added, "This financing allows the Company to focus on its advanced
location-based IT services and solutions (GEO-IT) that combine GPS
positioning, wireless communications and geographical information technology,
which together enable businesses and institutions to monitor, trace, or
control the movement and status of machinery, vehicles, personal or other
assets."
In connection with the financing, Astrata issued secured convertible notes
in the aggregate principal amount of $2,170,000 convertible into shares of
Astrata common stock and warrants to purchase approximately 700,000 shares of
its common stock at an initial exercise price of $3.00 per share. The
warrants have an exercise period of five years and an initial exercise price
of $3.00 per share, subject to certain adjustments.
None of the convertible notes, the warrants, or the shares of common stock
underlying the convertible notes or the warrants have been registered under
the Securities Act of 1933. Accordingly, none of the shares, convertible notes
or warrants may not be offered or sold in the United States, except pursuant
to an effective registration statement or an applicable exemption from the
registration requirements of the Securities Act. Astrata has agreed to file a
registration statement covering resale by the investors of shares of common
stock to be issued upon exercise of the convertible notes and the warrants.

This press release shall not constitute an offer to sell or the
solicitation of an offer to buy the common stock, warrants, or common stock to
be issued upon exercise of the warrants. This private placement was made with
the co-placement agents and any opportunity to participate in the private
placement was available to a very limited group of accredited investors. This
press release is being issued pursuant to and in accordance with Rule 135c
under the Securities Act.

About Astrata Group Incorporated
Astrata Group Incorporated (OTC Bulletin Board: ATTG) is focused on
advanced location-based IT services and solutions (GEO-IT) that combine GPS
positioning, wireless communications (satellite or terrestrial) and
geographical information technology, which together enable businesses and
institutions to monitor, trace, or control the movement and status of
machinery, vehicles, personnel or other assets. Astrata has designed,
developed, manufactured and currently supports seven generations of GEO-IT
systems with over 80,000 units deployed worldwide. Sales are divided between
two divisions: telematics (remote asset management solutions) and geomatics
(high-end professional GPS systems with accuracies approaching three
millimeters). Astrata has approximately 230 permanent employees and employs
nearly 100 people in its R&D and manufacturing divisions. For further
information about the company and its products, please send an email to
info@astratagroup.com or visit the Web site at http://www.astratagroup.com.

Certain statements in this press release that are not historical facts are
"forward-looking statements" within the meaning of the Private Securities
Litigation Reform Act of 1995. Such statements may be identified by the use
words such as "anticipate, "believe", "expect," "future," "may," "will,"
"would," "should," "plan," "projected," "intend," and similar expressions.
Such forward-looking statements, involve known and unknown risks,
uncertainties and other factors that may cause the actual results, performance
or achievements of Astrata Group Incorporated (the "Company") to be materially
different from those expressed or implied by such forward-looking statements.
The Company's future operating results are dependent upon many factors,
including but not limited to (i) the Company's ability to obtain sufficient
capital or a strategic business arrangement to fund its current operational or
expansion plans; (ii) the Company's ability to build the management and human
resources and infrastructure necessary to support the anticipated growth of
business; (iii) competitive factors and developments beyond the Company's
control; and (iv) other risk factors discussed in the Company's periodic
filings with the Securities and Exchange Commission, which are available for
review at http://www.sec.gov under "Search for Company Filings."

Company Contact:

Richard Nelson
rnelson@astratagroup.com

Porter, LeVay & Rose, Inc.

Marlon Nurse, VP - Investor Relations
Jeff Myhre, VP - Editorial
212-564-4700

Tom Gibson, VP - Media Relations
201-476-0322