Call Genie Inc.
TSX VENTURE : GNE

Call Genie Inc.

March 29, 2007 09:30 ET

Call Genie Announces Additional $2 Million Through Exercise of Underwriter's Option in Bought Deal Financing

CALGARY, ALBERTA--(CCNMatthews - March 29, 2007) -

THIS NEWS RELEASE IS NOT FOR DISTRIBUTION TO U.S. NEWSWIRE SERVICES OR FOR DISSEMINATION IN THE UNITED STATES, AND DOES NOT CONSTITUTE AN OFFER OF THE SECURITIES DESCRIBED HEREIN

Call Genie Inc. (TSX VENTURE:GNE) (the "Company") reported today that the Underwriters' Option granted in the Letter Agreement announced on March 26, 2007 has been fully exercised in respect of 2,000,000 Common Shares. The additional Common Shares are to be issued in conjunction with the previously announced bought deal private placement involving a syndicate of underwriters, co-led by Wellington West Capital Markets Inc. and GMP Securities L.P. and including Raymond James Ltd. (collectively, the "Underwriters"). With the exercise of the option, the Underwriters have agreed to purchase a total of 10 million Common Shares of the Company from treasury, at a price of $1.00 per Common Share.

The Common Shares have not been, nor will they be, registered under the United States Securities Act of 1933, as amended, and may not be offered or sold in the United States or to, or for the account or benefit of, U.S. persons absent registration or an applicable exemption from registration requirements. This news release shall not constitute an offer to sell or the solicitation of an offer to buy nor shall there be any sale of the securities in any state in which such offer, solicitation or sale would be unlawful.

The financing is scheduled to close on or about April 17, 2007 and is subject to the receipt of all necessary regulatory approvals (including the approval of the TSX Venture Exchange) and execution and delivery of a definitive underwriting agreement and related documentation. Proceeds of the Offering are expected be used for the continued development and marketing of the Company's EVD™ (Enhanced Voice Directory) product and for general corporate purposes. Upon completion of the offering, the Underwriters will be entitled to a cash commission equal to 6% of the total gross proceeds raised through the sale of the Common Shares, and broker warrants entitling the holders to acquire up to 6% of the total number of Common Shares sold in connection with the offering, at a price of $1.00 per share.

About Call Genie Inc.

Call Genie, Inc. is a leading provider of enhanced Voice-enabled Mobile Local (VoMoLo) search products and services to Wireless Carriers, Directory Assistance providers, and Yellow Page publishers. Offered as a turnkey or ASP solution, Call Genie's Enhanced Voice Directory (EVD™) platform enables companies to offer a comprehensive, voice-enabled business category search service to consumers and business customers. EVD™ is network, handset and location independent, and can be incorporated into any existing DQ service or deployed as a stand-alone offering.

Call Genie won the 2006 Yellow Page Association Industry Excellence Award for Marketing Innovation in North America, the 2006 Whitaker Innovation Award in Europe, and the 2006 118 Tracker Award for Technology Innovation in the UK.

For more information, visit www.callgenie.com.

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.

THIS NEWS RELEASE IS NOT FOR DISTRIBUTION TO U.S. NEWSWIRE SERVICES OR FOR DISSEMINATION IN THE UNITED STATES, AND DOES NOT CONSTITUTE AN OFFER OF THE SECURITIES DESCRIBED HEREIN.

Certain statements included in this News Release are not historical facts, but rather are forward-looking statements. Forward-looking statements (often, but not always, identified by the use of words such as "expect", "may", "anticipate" or "will" and similar expressions) may include plans, expectations or opinions that are not statements of fact. Forward-looking statements are based upon the opinions, expectations and estimates of management of Call Genie as at the date the statements are made and are subject to a variety of risks and uncertainties and other factors that could cause actual events or outcomes to differ materially from those anticipated or implied by such forward-looking statements. These factors include such things as, volatility in the trading price and volumes of the Company's publicly traded securities, domestic or international events having a significant effect on capital markets, the inherent risks associated with research and development activities and commercialization of emerging technologies, timing of execution of various elements of the Company's business plan, the availability of human resources, the availability of financial resources (including third-party financing), prevailing interest and exchange rates and new laws (domestic or foreign). Forward-looking information respecting the use of the proceeds from the sale of the Common Shares is based upon the current budget and development plans of Call Genie, which are subject to change. Call Genie Inc. does not assume responsibility for the accuracy and completeness of the forward-looking statements set out herein and, subject to applicable securities laws, 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. Additional information relating to various 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 Company's annual MD&A for the year ended December 31, 2006, which has been filed with certain securities regulatory authorities in Canada and 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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