I enabled the exp_internal and updated the line with:
expect -re "#|'$'"
The output is:
Last login: Mon Nov 9 13:21:06 from host1
Sun Microsystems Inc. SunOS 5.10 Generic January 2005
expect: does " \r\nLast login: Mon Nov 9 13:21:06 from host1\r\nSun Microsystems Inc. SunOS 5.10 Generic January 2005\r\n" (spawn_id exp7) match regular expression "#|'$'"? no
$
expect: does " \r\nLast login: Mon Nov 9 13:21:06 from zcyds232.asiapa\r\nSun Microsystems Inc. SunOS 5.10 Generic January 2005\r\n$ " (spawn_id exp7) match regular expression "#|'$'"? no
expect: timed out
faxstat: Timed out after 5 seconds.
Although the "$" is shown in the telnet output....but the script doesn't match it...