Call Genie Inc.
TSX : GNE

Call Genie Inc.

December 29, 2009 08:30 ET

Call Genie Announces Closing of Convertible Debenture Financing

TORONTO, ONTARIO--(Marketwire - Dec. 29, 2009) - Call Genie Inc. (TSX:GNE) today announced that it has distributed an aggregate amount of $4.0 million principal amount of convertible secured debentures including the $2.5 million aggregate amount of the first tranche previously announced on November 12, 2009.

Under the terms of the debentures, outstanding principal will bear interest at a rate of 12% per annum, payable semi-annually, and the debentures will mature on October 31, 2012. At the option of the Debenture Holder, principal and accrued interest under the debentures may be converted into common shares of the Company at a conversion price of $0.50 per share. The Company has granted a security interest to Debenture Holders under a general security agreement covering all of the assets of the Company.

In addition, each Debenture Holder received 480 warrants per $1,000 principal amount of debentures. Each warrant entitles the holder to purchase one common share of the Company, at an exercise price of $0.225, at any time prior to October 31, 2011.

The debentures have not been, and will not be, registered under the United States Securities Act of 1933.

About Call Genie Inc.

Call Genie is a leading global provider of local mobile search and advertising solutions that connect ready to transact consumers directly with local merchants for local directory businesses, directory assistance services and local media publishers. Call Genie solutions offer an exceptional experience for both advertisers and consumers and are deployed in 11 countries around the world. Call Genie has been awarded the Excellence in Integrated Ad Management award by the Pelorus Group, has won the Yellow Page Association Industry Excellence Award for Marketing Innovation, the Whitaker Innovation Award, the 118 Tracker Award for both Technology Innovation in the UK and most recently, Outstanding Contribution to the Industry. www.callgenie.com.

The TSX Exchange has neither approved nor disapproved the contents of this news release.

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