WebTech Wireless Inc.

WebTech Wireless Inc.
Grey Island Systems International Inc.

Grey Island Systems International Inc.

September 08, 2009 04:00 ET

WebTech Wireless and Grey Island International Provide Progress Update on Company Integration

VANCOUVER, BRITISH COLUMBIA--(Marketwire - Sept. 8, 2009) - WebTech Wireless Inc. (TSX:WEW) ("WebTech Wireless") and Grey Island Systems International Inc. (TSX VENTURE:GIS) ("Grey Island") announce that they have made significant and early progress identifying opportunities for both companies within each others' sales pipelines, as well as additional cost savings and efficiencies to be realized post integration.

As first announced, the integrated company is forecasting:

- Pro-forma calendar 2009 run rate revenue of $50 million

- Sustainable 2010 organic growth based on existing contract backlogs

- Combined recurring revenue approaching $6 million per quarter in 2010

- Profitability in 2010

- A minimum of $1 million in operational savings - from savings on Grey Island public company costs, R&D synergies, and other back-office costs.

Since the first announcement, the integrated company is now predicted to:

- Reduce procurement costs and overall cost of sales in 2010 by $1 million or more - improving combined gross profit margins

- Achieve an additional $1 million in savings in 2010 by bringing certain outsourced manufacturing in-house - further improving margins

- Redeploying development efforts, assigning overlapping resources to new product development and incremental business opportunities.

Finally, early analysis of each company's sales pipeline has identified several cross-selling opportunities to further enhance the organic growth opportunities of both companies:

- A provisional sale of 160 Grey Island units to a WebTech Wireless customer in Kuwait

- Extension of an existing Grey Island solution for a major multinational's Canadian operation to its Middle Eastern unit, leveraging WebTech Wireless' expertise in this market.

- Identification of four Middle East opportunities for Grey Island's NextBus solution

- Grey Island's snow plow solution will be introduced to WebTech Wireless customers soon after integration is complete

- Grey Island will introduce WebTech Wireless' flagship product, the WT5000 Locator™, to a number of its municipal customers looking for fleet-wide GPS coverage.

Anwar Sukkarie, President & Chief Executive Officer of WebTech Wireless, said, "Though we are still in the early stages of planning our integration, we are thrilled to confirm that the synergies we believed existed, actually do. Grey Island's product mix will knit together beautifully with our own products and product roadmap. As important, is the discovery of tremendous potential among our prospect and existing customer lists. I'm looking forward to travelling with Owen to Europe and the Middle East as soon as this deal is closed to begin consolidating these sales."

Owen Moore, President of Grey Island, said, "Now that the uncertainty clouding this transaction has been removed, we're very excited about making good on the opportunities it presents. Our sales force is anxious to start co-selling the WebTech Wireless solution, and our customers are already talking about installing a top-to-bottom solution that can deal with everything from simple 'track & trace' to sophisticated, integrated fleet and asset management systems including regulatory compliance abilities."

The progress seen thus far underscores WebTech Wireless and Grey Island's commitment to this agreement - and the provision of integrated and custom made solutions for a variety of organizations that depend on efficient and effective mobile resource management.

About WebTech Wireless Inc.

WebTech Wireless Inc. (TSX:WEW) is a global telematics and location-based services provider that develops, manufactures and delivers end-to-end wireless solutions designed to improve the productivity, profitability and safety of vehicle fleets. WebTech Wireless products and services run on GPS and cellular networks and provide Automatic Vehicle Location, Mapping, Reporting, Vehicle Diagnostics, Driver Status, In-vehicle Telemetry and Navigation and Messaging. The Company delivers products and services in over forty-one countries to a variety of small, medium and Fortune 500 companies, with a particular focus on the transport, service delivery, government and automotive markets. For more information, please visit www.webtechwireless.com.

About Grey Island Systems International Inc.

Grey Island Systems International Inc. (TSX VENTURE:GIS), through its subsidiaries NextBus Inc. in Alameda, California, InterFleet, Inc. in New York, New York and Grey Island Systems in Toronto, Canada, is a leading provider of custom real-time GPS/AVL, security and Telematics solutions as well as real-time passenger information systems to government and related fleets. To find out more about our products and services, visit our websites at: www.interfleet.com or www.nextbus.com.

Forward-looking Statements

This press release contains "forward-looking statements" within the meaning of applicable Canadian and United States securities laws. Generally, forward-looking statements can be identified by the use of the forward-looking terminology such as "plans", "expects" or "does not expect", "is expected", "budget", "scheduled", "estimates", "forecasts", "intends", "anticipates" or "does not anticipate", or "believes", or variations of such words and phrases or state that certain actions, events or results "may", "could", "would", "might" or "will be taken", "occur" or "be achieved". Assumptions upon which such forward-looking statements are based include that WebTech Wireless and Grey Island will be able to satisfy the conditions in the definitive agreement, that no materially adverse facts or circumstances will be identified, that the required approvals will be obtained from the shareholders of Grey Island, that all third party regulatory and governmental approvals to the Transaction will be obtained and all other conditions to the completion of the Transaction will be satisfied or waived. Many of these assumptions are based on factors and events that are not within the control of WebTech Wireless and Grey Island and there is no assurance they will prove to be correct. Forward-looking statements are subject to known and unknown risks, uncertainties and other factors that may cause the actual results, performance or achievements of WebTech Wireless and Grey Island to be materially different from those expressed or implied by such forward-looking statements, including but not limited to: risks related to product plans, timing, content, and pricing of products, market and industry expectations, the wireless communications industry, the mobile fleet industry, and general economic and political conditions, as well as those factors discussed in the section entitled "Description of the Business - Risk Factors" in WebTech Wireless' annual information form for the year ended December 31, 2008 and although WebTech Wireless and Grey Island have attempted to identify important factors that could cause actual results to differ materially from those contained in forward-looking statements, there may be other factors that cause results not be as anticipated, estimated or intended. There can be no assurance that such statements will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements. Accordingly, readers should not place undue reliance on forward-looking statements. WebTech Wireless and Grey Island do not undertake to update any forward-looking statements that are incorporated by reference herein, except in accordance with applicable securities laws.

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

The Toronto Stock Exchange does not accept responsibility for the adequacy or accuracy of this release. Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

Contact Information