Call Genie Inc.
TSX : GNE

Call Genie Inc.

June 15, 2009 08:00 ET

Call Genie Inc. Signs Amendment With R.H. Donnelley to Extend the Term of the Existing Agreement and Significantly Expand the Scope of Engagement

TORONTO, ONTARIO--(Marketwire - June 15, 2009) -

THIS NEWS RELEASE IS NOT FOR DISTRIBUTION TO U.S. NEWSWIRE SERVICES OR FOR DISSEMINATION IN THE UNITED STATES

Call Genie Inc. (TSX:GNE) today announced that it has signed an amending agreement, which extends the term of its contract with R.H. Donnelley ("RHD") to December 31, 2012. The amending agreement also expands the scope of the relationship to include new product deployment, custom development and ongoing operational support and maintenance for a comprehensive lead generation and advertising solution. As well, the amendment provides Call Genie with exclusivity over the extended term of the agreement.

In October 2008, the Company announced that Dex, a part of RHD, had made its award winning 1-800-Call-Dex™ service (enabled by Call Genie) available throughout the 14-state footprint where Dex is the official yellow pages directory for Quest. The expansion of the service into the additional 35 major metropolitan markets followed successful trials in Denver, Phoenix, Spokane and Tucson.

1-800-Call-Dex, which provides free local business category searches and business name searches to consumers, currently utilizes two Call Genie products: (i) Interact Voice -- an automated voice recognition system that employs unique hyper-location based search technology, allowing callers to search based on local landmarks, intersections or neighborhoods; and (ii) Open Mobile -- which enables callers to receive enhanced information such as maps and directions depending upon the capabilities of their mobile phones.

The contract amendment with R.H. Donnelley entails a significant expansion of the capabilities of the system, enhancements to the customer experience and possible extensions of the geographical reach of the 1-800-Call-Dex service. The amended agreement contemplates that 1-800-Call-Dex will utilize virtually all of Call Genie's product solutions, including the following additional services: Open Location, Open Listing, Open Agent, Open Search, ADvantage, and Business Name Automation. Call Genie and R.H. Donnelley believe that this combination of products will deliver a compelling user experience for callers and highly relevant advertising opportunities for advertisers.

Under the amended agreement with RHD, US$2,750,000 is expected to be paid to Call Genie in 2009 on account of upfront fees and payments for product deployment and custom development work. The amended agreement also provides that Call Genie will be entitled to further revenues over the balance of the term of the contract from: (i) reoccurring maintenance and hosting fees; and (ii) transaction fees based on call volume upon commercial deployment of the applications.

"The significant expansion of our agreement with R.H. Donnelley provides further validation of the investments that we have made in expanding Call Genie's product line over the last several years," noted Michael Durance, CEO of Call Genie. "We have worked very hard with R.H. Donnelley, as we do with all of our other partners and customers throughout the world, to quickly capitalize on the scale of opportunities available through mobile local search and are very pleased to see the fruits of our collective efforts manifest themselves in such an exciting way."

"Under the amended contract with RH Donnelley, Call Genie will be entitled to a fee for each call logged to the Call-Dex service, in addition to multi-year maintenance and hosting compensation," noted Chris Shelton, CFO of Call Genie. "Based upon calls logged to 1-800-Call-Dex during the deployment of the Call Genie enabled service in various metropolitan areas in the United States in 2008 as well as those calls anticipated under new applications, Call Genie expects to earn significant fee-based remuneration over the life of the contract."

Certain information set out in this News Release constitutes forward-looking information, including information concerning: (i) the fees estimated to be payable to the Corporation in 2009; (ii) the Corporation's entitlement to fees and revenues during the term of the amended agreement between the Corporation and RHD and the nature of the services and transactions that may give rise to such fees and revenues; and (iii) future fee-based remuneration anticipated by the Corporation. Readers are referred to the cautionary statement concerning forward-looking information that appears at the end of this News Release.

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 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, and the 118 Tracker Award for both Technology Innovation in the UK and most recently, Outstanding Contribution to the Industry. www.callgenie.com.

THIS NEWS RELEASE IS NOT FOR DISTRIBUTION TO U.S. NEWSWIRE SERVICES OR FOR DISSEMINATION IN THE UNITED STATES. THIS NEWS RELEASE SHALL NOT CONSTITUTE AN OFFER TO SELL OR THE SOLICITATION OF AN OFFER TO PURCHASE SECURITIES OF THE COMPANY IN ANY JURISDICTION.

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 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 any Call Genie forward-looking statements. Those factors include, but are not limited to, such things as prevailing economic conditions (both domestic and international), 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, the emergence of competitive technologies, and the continued ability of counterparties to discharge contractual obligations agreed to with the Corporation and its affiliates. 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. Forward-looking information respecting the fees estimated to be payable to the Corporation in 2009 is based upon: (i) the terms of commercial agreements entered into between the Corporation and RH Donnelley, as amended; and (ii) the current schedule for deployment of upgrades to the Call Genie enabled 1-800 CALL DEX service. Forward-looking information respecting the Corporation's entitlement to fees and revenues during the term of the amended agreement between the Corporation and RHD and the nature of the services and transactions that may give rise to such fees and revenues is based upon the terms of commercial agreements entered into between the Corporation and RH Donnelley, as amended.
Forward-looking information respecting future fee-based remuneration anticipated by the Corporation is based upon: (i) the terms of commercial agreements entered into between the Corporation and RH Donnelley, as amended (including the per transaction fee payable to Call Genie thereunder); (ii) advice received from RH Donnelley as to the volume of calls to the 1-800 CALL DEX service during the trial period for the Call Genie supported service, which ran during 2008 in the cities of Denver, Phoenix, Spokane and Tucson; (iii) advice received from RH Donnelley as to the volume of calls to the 1-800 CALL DEX service since the expanded deployment of the service in various metropolitan areas in the United States commencing in October 2008; (iv) that the volume of calls to the 1-800 CALL DEX service in various metropolitan areas in the United States where the service is available will be comparable to call volumes experienced in Denver, Phoenix, Spokane and Tucson in connection with the trial of the Call Genie supported 1-800 CALL DEX service and in those and other metropolitan areas since the expanded deployment of the service commencing in October 2008; (v) an increase in the number of calls to the 1-800 CALL DEX service following upgrades to include the additional Call Genie services noted above (including, for example, automated business name searches); (vi) RH Donnelley undertaking advertising campaigns in support of the 1-800 CALL DEX service; (vii) historical directory assistance-type call volumes in RH Donnelley's territory; (viii) RH Donnelly entering into key relationships with third parties; (ix) performance of the commercial agreements by each of Call Genie, RH Donnelley and their partners; and (x) no material amendments to the commercial agreements between Call Genie and RH Donnelley having effect prior to the end of the current term of those agreements. Except to the extent required under applicable securities laws, Call Genie does not undertake any obligation to publicly revise any forward-looking statements set out in this News Release to reflect subsequent events or circumstances. Call Genie's forward-looking statements are 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 three month period ended March 31, 2009 and the 2008 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 are available through SEDAR, at www.sedar.com.

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

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