Call Genie Inc.
TSX VENTURE : GNE

Call Genie Inc.

May 19, 2006 10:33 ET

Call Genie Announces First Quarter Results for Fiscal 2006

CALGARY, ALBERTA--(CCNMatthews - May 19, 2006) - Call Genie Inc. (TSX VENTURE:GNE), a provider of enhanced voice directory services, today reported first quarter results for the three months ended March 31, 2006.

Revenues for the three month period ended March 31, 2006 increased to $115,046 from $13,174 for the same three month period in 2005. The increase in revenues over both periods was as a result of the commercial deployment of the HelloYellow™ service in the Greater Toronto Area in the first quarter of 2005 and the sale of Enhanced Voice Directory listings to businesses in the Greater Toronto Area, through a joint operating agreement with the Yellow Pages Group. First quarter revenues increased 21% over the previous quarter, as the YPG sales force continued to successfully introduce HelloYellow™ to merchants in Ontario.

"The Company met and exceeded a number of our key goals during the first quarter," according to Michael Durance, Chief Executive Officer. "First, we've continued to train and build momentum among the YPG sales force. Second, we have established a timeline for our Telus 411 program. Third, we've completed a $10,000,000 private placement with National Bank Financial and GMP Securities L.P. that has left us well-capitalized for the foreseeable future. Last, we've made substantial hires to support our R&D and business development initiatives. This has left us well positioned as we step-up our plans for international expansion while continuing to build upon the solid foundation that we have established in Canada."

The Company's net loss for the first quarter of 2006 was $1,170,940 compared to $512,021 for the same period in 2005. For the quarter ended March 31, 2006, the cash used in operating activities was $1,013,029 compared to cash used in operating activities of $551,852 for the first quarter of the previous year. The increase in the Company's net loss and cash flows used in operating activities is primarily attributable to increased personnel and operating costs associated with business development initiatives and research and development activities.

As at March 31, 2006, Call Genie had positive working capital of $10,569,132.

The preceding Quarterly Results for Call Genie should be read in conjunction with Call Genie's unaudited financial statements and the accompanying notes for the three months ended March 31, 2006 and the related Management Discussion and Analysis ("MD&A"), which have been filed on SEDAR (www.sedar.com) and are available on the Call Genie website at www.callgenie.com

For a report on Call Genie's progress, refer to the Outlook section of the MD&A.

Certain information set out in this News Release concerning the Company's domestic and international expansion plans constitutes forward-looking information. Readers should review the cautionary statement respecting forward-looking information that appears at the end of this News Release.

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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Certain statements regarding Call Genie Inc. and its business contained herein 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 estimates, plans, expectations, opinions, guidance or other statements that are not statements of fact. Although Call Genie Inc. believes that the expectations reflected in such forward-looking statements are reasonable, it can give no assurance that such expectations will prove to have been correct. These statements are subject to certain risks and uncertainties that could cause actual results or outcomes to differ materially from those anticipated or implied in the forward-looking statements. Call Genie Inc. does not assume responsibility for the accuracy and completeness of the forward-looking statements and 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. Certain 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 2004 Annual Information Form filed by Call Genie on March 31, 2005 with certain securities regulatory authorities in Canada. The Annual Information Form 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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