Call Genie Inc.
TSX VENTURE : GNE

Call Genie Inc.

August 13, 2007 09:00 ET

Call Genie Announces Second Quarter Results for Fiscal 2007

TORONTO, ONTARIO--(Marketwire - Aug. 13, 2007) - Call Genie Inc. (TSX VENTURE:GNE), a leading provider of localized, voice-enabled search solutions to phone carriers, directory assistance providers and Yellow Pages publishers, today reported second quarter results for the three months ended June 30, 2007.

Revenues for the three-month period ended June 30, 2007 increased to $353,356 from $144,188 for the same three-month period in 2006. Revenues for the six-month period ended June 30, 2007 increased to $646,719 from $259,234 for the same six-month period in 2006. The increase in revenue is mainly attributable to a new agreement with the Yellow Pages Group of Canada. Overall, second quarter revenues increased 20% over the previous quarter.

"The second quarter was exceptional for Call Genie in many respects," according to Michael Durance, Chief Executive Officer. "Not only did we complete three substantial financings, including a $10mm "bought deal," and $15mm and $5mm respectively from each of Goldman Sachs, Inc. and Yellow Pages Group, but we announced significant achievements on the operational side of our business as well. We completed the negotiations of an extension of our relationship with Yellow Pages Group, announced a long-term agreement with Verizon and began work with Telus on localized search in the United States. All of this was made possible through the aggressive expansion of our highly skilled employee base, which is now in excess of 120 (including 44 part-time)."

Call Genie's net loss for the second quarter of 2007 was $2,873,285 compared to $1,368,011 for the same period in 2006. The net loss for the Company for the six months ended June 30, 2007 was $5,226,721 compared to $2,538,951 for the same period in 2006. For the quarter ended June 30, 2007, the cash used in operating activities was $2,577,666 compared to cash used in operating activities of $1,320,155 for the second quarter of the previous year. The increase in cash flows used in operating activities is primarily attributable to increased personnel and operating costs associated with business development activities and research and development activities.

As at June 30, 2007, Call Genie had a positive working capital of $29,866,110.

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 period ended June 30, 2007 and the related Management Discussion and Analysis ("MD&A"), which have been filed with certain securities regulatory authorities in Canada and are available on the SEDAR website at www.sedar.com and 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.

About Call Genie, Inc.

Call Genie, Inc. is a leading provider of enhanced Voice-enabled Mobile Local Search ("VoMoLo") search products and services to Wireless Carriers, Directory Assistance providers, and Yellow Pages 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 DA 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.

The TSX Venture Exchange has neither approved nor disapproved the contents of this News Release.

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