Wireless Age Communications, Inc.
OTC Bulletin Board : WLSA

Wireless Age Communications, Inc.
Function Mobile

Function Mobile

December 01, 2008 10:51 ET

Wireless Age to Acquire Function Mobile

TORONTO, ONTARIO--(Marketwire - Dec. 1, 2008) - Wireless Age Communications, Inc. (OTCBB:WLSA), ("Wireless Age" or "the Company") announced today that it has agreed on the terms and conditions to acquire Function Mobile Inc. ("Function Mobile").

Function Mobile is a development stage company focused on incorporating mobile media into the everyday lives of consumers. With operations in several jurisdictions across North and South America, they create innovative media channels, marketing solutions and advertising opportunities for brands to interact with consumers anytime, anywhere.

Wireless Age has agreed, subject to various terms and conditions including regulatory and board of directors approval, to acquire a 100% interest in Function Mobile Inc. for 3,500,000 restricted common shares of Wireless Age and an earnout provision of 10% gross margin on CAD$1,000,000 and 20% on gross margin over $2,000,000 for a period of five years. As part of the transaction, the Company agreed to provide a 10% carried interest in the resulting new entity to certain shareholders of Function Mobile in the event Function Mobile is disposed of by way of a going public transaction, or to grant a 10% interest in Function Mobile prior to a private sale of the company.

In addition, a few members of Function Mobile's executive team, including their CEO/Founder Marc Askenasi, along with COO/Co-Founder Felix Gelt, will stay on with Wireless Age, for a minimum one-year period, to grow both Function Mobile's business and assist Wireless Age with their existing operations and identifying new opportunities.

Closing is subject to the completion of definitive documentation and necessary approvals but is scheduled to occur prior to fiscal year end.

John G. Simmonds, Wireless Age CEO stated: "We view this as an excellent opportunity to expand beyond our retail operations. Remaining invested in the mobile/wireless game we are now growing into the emerging mobile media, marketing and advertising markets. The ability to capitalize on both transactional and advertising revenue will prove to be a very lucrative industry and we look forward to doing so with Marc and his team."

Marc Askenasi, Function Mobile CEO/Founder stated: "As mobile handset functionality continues to increase, so too will consumer dependency for data related services. This coupled with the resources of Wireless Age and the successful track record of their management team, creates an opportunistic environment to fast track our growth initiatives and build upon our success."

About Wireless Age

Wireless Age Communications (www.thewirelessage.com), through its 99.7% owned subsidiary, Wireless Age Communications Ltd., is in the business of operating retail cellular and telecommunications outlets in cities in western Canada. Through its other wholly owned subsidiary, Wireless Source Distribution Ltd., the company distributes two-way radio products and wireless accessories in Canada.

About Function Mobile

Function Mobile (www.functionmobile.com) is currently positioned in the mobile space where it operates in Canada, Peru, and is in the process of expanding into Ecuador and other Central and South American markets. It is partnered with leading mobile application solution providers, aggregators, and distributes its mobile games through telecoms, advertising agencies and brands that use and offer its proprietary software and services.

Note: This press release contains "forward looking statements" as defined in the Private Securities Litigation Reform Act of 1995. These forward-looking statements are based on currently available competitive, financial and economic data and management's views and assumptions regarding future events. Such forward-looking statements are inherently uncertain. Wireless Age cannot provide assurances that the matters described in this press release will be successfully completed or that the Company will realize the anticipated benefits of any transaction. Actual results may differ materially from those projected as a result of certain risks and uncertainties, including but not limited to: global economic and market conditions; the war on terrorism and the potential for war or other hostilities in other parts of the world; the availability of financing and lines of credit; successful integration of acquired or merged businesses; changes in interest rates; management's ability to forecast sales and control expenses, especially on a quarterly basis; unexpected decline in sales without a corresponding and timely slowdown in expense growth; the Company's ability to retain key management and employees; intense competition and the Company's ability to meet demand at competitive prices and to continue to introduce new products and new versions of existing products that keep pace with technological developments, satisfy increasingly sophisticated customer requirements and achieve market acceptance; relationships with significant suppliers and customers; as well as other risks and uncertainties, including but not limited to those detailed from time to time in Wireless Age SEC filings. Wireless Age undertakes no obligation to update information contained in this release. For further information regarding risks and uncertainties associated with Wireless Age Communications, Inc.'s business, please refer to the risks and uncertainties detailed from time to time in Wireless Age's SEC filings.

Contact Information

  • Wireless Age Communications, Inc.
    John G. Simmonds
    Chairman & CEO
    (905) 833-2753 ext. 223
    or
    Wireless Age Communications, Inc.
    Andrew Barwicki
    Investor Relations
    (516) 662-9461
    Website: www.thewirelessage.com