Datacom Wireless Corporation

Datacom Wireless Corporation

November 25, 2008 16:28 ET

Datacom Announces Third Quarter 2008 Financial Results

LAVAL, QUEBEC--(Marketwire - Nov. 25, 2008) - Datacom Wireless Corporation ("Datacom" or "the Corporation)(TSX VENTURE:DAT), a Canadian leader in the design, development and marketing of mission critical vehicle fleet management and theft prevention solutions today announced its financial results for the three-month period ended September 30, 2008.

Third Quarter Growth Highlights:

Mobicom units sold in the third quarter of 2008 totalled 502 units, up 99.2 %, compared to 252 units sold in the same period in 2007. During the first nine months of 2008, Mobicom units sold totalled 1,305 units, up 39.3 % compared to 937 units sold for the same period in 2007.

Mobiguard units sold for the third quarter of 2008 totalled 4,817 units, up 74.5 %, compared to 2,760 units sold for the same period in 2007. During the first nine months of 2008, Mobicom units sold totalled 12,496 units, up 84.8 % compared to 6,764 units sold for the same period in 2007.

The Corporation streamlined its sales and reduced the expenses related to sales and marketing, quarter over quarter, since January 2008 while increasing the Gross margin by 7.4 percentage points compared to the first nine months of 2007.

Termination of the analogue service

- The Corporation continues its efforts underway since the second quarter in regards to the analogue service termination. All impacted customers were notified in writing that the termination of service would occur on November 16th 2008. Refunds for services pre-paid but not rendered will be issued during the fourth quarter of 2008.

The Corporation vigorously executed its Mobicom marketing plan:

- Introduced new analysis and communication tools to improve customer relations and stimulate the growth of our existing customer base.

- Reorganized the Corporation activities in Ontario by introducing an improved sales structure better suited to the needs of that market.

- Implemented a telemarketing team to increase the efficiency of the Corporation's sales representatives.

- Added new sales representatives to the existing team with professional profiles that accurately matches our market competitive landscape.

Revamp of the Mobicom customer application.

- The end-user interfaces " Dataview " and " Mapview " were redesigned to improve the ergonomic and overall customer experience. Subsequent deployments took place to address customer feedback with complementary requirements. A mapping update with the latest geographical data was also completed.

Cost reduction plan

- Management continues its efforts to reduce expenses. At the end of the third quarter, 13 additional layoffs were completed for a total of 24, or 28% in headcount since January 1st 2008.

- From our second quarter forecast of $525,000 for implementing our expenditure reduction plan and implementing the agreements with our principal customers concerning the termination of the analogue security operations as well as maintaining the digital Mobilus service until December 31st 2010, $92,421 were spent as of September 30, 2008. Management maintains its original forecast of $525,000 to realize this plan. This amount of $92,421 was recorded under Unusual items of the income statement.

Emerson Agreement Co.

- The original agreement between the Corporation and Emerson Electric Co. under which royalties are paid to Datacom based on units sold expired in July 2008. Discussions to renew the agreement are still under way.

About Datacom Wireless Corporation:

Founded in 1999, Datacom has grown to become one of the Canadian leaders in the design, development and marketing of mission critical vehicle fleet management and theft prevention solutions. Its products and services use wireless communications and satellite-based tracking technologies (GPS) and a state-of-the-art ASP information portal.

Forward-Looking Statements:

This press release includes certain statements that may be deemed "forward-looking statements". Forward-looking statements are frequently characterized by words such as "plan", "expect", "project", "intend", "believe", "anticipate", "estimate", and other similar words, or statements that certain events or conditions "may" or "will" occur. All statements in this release, other than statements of historical facts, that address future events or developments that the Corporation expects or anticipates, are forward-looking statements. Although the Corporation believes the expectations expressed in such forward-looking statements are based on reasonable assumptions, such statements are not guarantees of future performance and actual results or developments may differ materially from those in forward-looking statements. Factors that could cause actual results to differ materially from those in forward-looking statements include market prices and general economic, market or business conditions. There can be no assurance that forward-looking statements will prove to be accurate, as results and future events could differ materially from those anticipated statements. The Corporation undertakes no obligation to update forward-looking statements if circumstances or management's estimates or opinions should change. The reader is cautioned not to place undue reliance on forward-looking statements.

All trademarks and brands mentioned in this Press Release are the property of their respective owners.

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