Call Genie Inc.
TSX VENTURE : GNE

Call Genie Inc.

January 30, 2007 09:35 ET

Call Genie Announces Long Term U.S. Agreement

CALGARY, ALBERTA--(CCNMatthews - Jan. 30, 2007) - Call Genie Inc. (TSX VENTURE:GNE) announced today that its wholly-owned subsidiary, Call Genie USA, Inc., has entered into a five-year, non-exclusive agreement (the "Agreement") with a provider of directory assistance services in the United States, under which Call Genie USA will supply the Company's voice search technology for use in connection with the provider's 411 service. At the end of the five-year term, the contract may be extended, in 12-month increments, if both parties are in agreement. Under an existing confidentiality understanding between Call Genie and the directory assistance provider, the Corporation is precluded from identifying the provider at this time.

Call Genie USA and the directory assistance provider have successfully completed a trial, in a major U.S. market, to assess the compatibility of Call Genie's voice application with the provider's 411 service and are now working towards the national rollout of the service. The integrated service is scheduled to be available in 50 major markets in the United States by the end of first quarter of 2007.

Under the Agreement, Call Genie USA is to receive an implementation fee, covering roll out of the voice-enabled service in the first 50 U.S. markets, and a further implementation fee for each additional market covered. As well, the Agreement provides that Call Genie USA will receive a fixed fee in respect of each call to the directory assistance service for which an automated business category search is successfully completed utilizing the Company's voice search technology. Under this arrangement, Call Genie USA's revenues will be derived primarily from those fixed per call fees. The arrangement does not contemplate the receipt of charges for a listing in an electronic business directory, as is the case with the commercial agreements entered into between the Corporation and the Yellow Pages Group in December 2003.

Call Genie USA does not anticipate revenues in excess of $1 million from this directory services arrangement in the first year of deployment, 2007. Revenue estimates are based upon the terms of the Agreement, the existing timetable for roll out of the service in United States markets, the average monthly number of directory assistance calls made to the provider's service in its coverage areas, the percentage of callers who opted to undertake a voice-enabled business category search during the trial conducted by Call Genie USA and the provider in 2006 and the percentage of those calls that were successfully automated during the trial.

"With the signing of this agreement, we have achieved one of the major milestones that was identified by management and the directors in 2006, when the Company's business plan was modified to enable the aggressive pursuit of international business opportunities," noted Michael Durance, Chief Executive Officer of Call Genie. "This contract represents the first commercial deployment of our technology outside Canada and illustrates our ability to creatively adapt and capitalize on our existing technologies in new markets and high volume call environments. Our successful transition from a trial of our technology to a commercial agreement provides us with confidence in our business development approach and we are working hard to replicate that success in respect of other ongoing trials, including those previously announced by the Company."

Certain information set out in this News Release constitutes forward-looking information, including the anticipated timing of roll out of the voice-enabled directory assistance service in various U.S. markets, the number of markets to be serviced and estimated revenues from the service for 2007. Readers should carefully review the cautionary statement respecting forward-looking information that appears at the end of this News Release.

About Call Genie

Call Genie's HelloYellow™ service is operational in the Greater Toronto Area by dialing 310-YELO. The service is the first of its kind in the world. Call Genie partnered with the Yellow Pages Group in December 2003 and began the commercialization of the service in September of 2005.
Call Genie is a provider of enhanced voice directory services. Call Genie's services include the development of interactive voice recognition applications, marketing and sales planning, operational support, and the management of related technologies and network operations center components. Call Genie is a leader in the voice sector of the interactive, local directory services market - the business of bringing together consumers and merchants. Please visit our website at www.callgenie.com.

This News Release contains forward-looking information. Forward-looking statements are often, but not always, identified by the use of words such as "seek", "anticipate", "plan", "continue", "estimate", "expect", "may", "will", "intend", "could", "might", "should", "believe" and similar expressions. Forward-looking statements are based upon the opinions and estimates of management as of the effective date of such statements and, in some cases, information provided or disseminated by third parties. Although Call Genie Inc. believes that the expectations reflected in such forward-looking statements are based upon reasonable assumptions and such third party information is reliable, it can give no assurance that such expectations will prove to have been correct. Forward-looking statements are subject to certain risks and uncertainties(known and unknown) that could cause actual results or outcomes to differ materially from those anticipated or implied by the forward-looking statements. Those factors include, but are not limited to, such things as the Corporation's current stage of development, its reliance upon third parties and third party technology, its reliance upon key employees, its limited financial resources and the availability of financing to fund future operating and other needs, the ability of the Corporation to meet deadlines and perform other contractual obligations, user acceptance of the voice search technology, the Corporation's ability to continually improve the user experience associated with its voice search technology and the emergence of competitive technologies. Accordingly, readers should not place undue reliance upon the forward-looking statements contained in this News Release, and such forward-looking statements should not be interpreted or regarded as guarantees of future outcomes. Call Genie Inc. does not undertake any obligation to publicly revise these forward-looking statements to reflect subsequent events or circumstances. Call Genie Inc.'s forward-looking statements are expressly qualified in their entirety by this cautionary statement. Certain risk factors to which Call Genie is exposed in the conduct of its business (and which may affect the expectations or outcomes reflected in the forward-looking statements contained in this News Release) are described in the Management's Discussion and Analysis relating to the interim financial statements of the Corporation as at and for the periods ended September 30, 2006 and the 2004 Annual Information Form filed by the Corporation with certain securities regulatory authorities in Canada. The foregoing Management's Discussion and Analysis and Annual Information Form is available through SEDAR, at www.sedar.com.

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

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