Call Genie Inc.
TSX VENTURE : GNE

Call Genie Inc.

March 21, 2006 18:11 ET

Call Genie Announces Closing of $10,000,000 Private Placement

CALGARY, ALBERTA--(CCNMatthews - March 21, 2006) -

NOT FOR DISTRIBUTION TO UNITED STATES WIRE SERVICES OR DISSEMINATION IN THE U.S.

Call Genie Inc. (TSX VENTURE:GNE) announced today that it has successfully closed its previously announced Private Placement financing, for aggregate gross proceeds of $10,000,000.

In connection with the closing, Call Genie issued 10,000,000 Common Shares at the previously announced price of $1.00 per share. All Common Shares issued in connection with the Private Placement are subject to a four-month hold period.

The closing price of Call Genie Common Shares on March 21, 2006 was $1.49 per share.

"We are very pleased by the strong institutional interest and the speed at which we were able to complete this process," remarked Michael Durance, the Chief Executive Officer of Call Genie Inc. "Further, we were both over subscribed on the Offering and were able to attract strong and professional financing partners in National Bank Financial and GMP Securities."

Call Genie expects to utilize the net proceeds of the Offering to support the ongoing effort to introduce its Enhanced Voice Directory technology into the United States and other international markets, to fund research and development initiatives and for general working capital purposes.

National Bank Financial was engaged as lead agent for purposes of the Private Placement, and GMP Securities L.P. acted as Co-Manager. A total of 250,000 Common Shares were sold to the directors, officers, employees and consultants of Call Genie Inc. in connection with the Offering.

As provided for in the Agency Agreement entered into with National Bank Financial and GMP Securities, Call Genie has paid a $600,000 cash commission to the Agents, representing 6% of the total gross proceeds raised through the sale of Common Shares and has issued to the Agents broker warrants entitling them to acquire, in the aggregate, up to 600,000 Common Shares, representing 6% of the total number of Common Shares sold in connection with the Offering. The price at which a Common Share may be acquired upon the exercise of the broker warrants is equal to the price at which Common Shares were sold under the Offering.

About Call Genie

Call Genie's HelloYellow™ service is operational in the Greater Toronto Area by dialing 310-YELO. The service is the first of its kind in the world. Call Genie partnered with the Yellow Pages Group in December 2003 and began the commercialization of the service in September of 2005.

Call Genie is a provider of enhanced voice directory services. Call Genie's services include the development of interactive voice recognition applications, marketing and sales planning, operational support, and the management of related technologies and network operations center components. Call Genie is a leader in the voice sector of the interactive, local directory services market - the business of bringing together consumers and merchants. Please visit our website at www.callgenie.com.

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THIS NEWS RELEASE SHALL NOT CONSTITUTE AN OFFER TO SELL OR THE SOLICITATION OF AN OFFER TO PURCHASE SECURITIES OF THE CORPORATION IN ANY JURISDICTION.

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

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