Call Genie Inc.
TSX VENTURE : GNE

Call Genie Inc.

November 01, 2006 09:25 ET

Call Genie Announces Third Quarter Results for Fiscal 2006

CALGARY, ALBERTA--(CCNMatthews - Nov. 1, 2006) - Call Genie Inc. (TSX VENTURE:GNE), a provider of enhanced voice directory services, today reported third quarter results for the three months ended September 30, 2006.

Revenues for the three-month period ended September 30, 2006 increased to $177,841 from $51,536 for the same three-month period in 2005. Revenues for the nine-month period ended September 30, 2006 increased to $437,075 from $95,351 for the same nine-month period in 2005. The increase in revenue is attributable to an increase in the number of merchants subscribing for the Hello Yellow service in the Greater Toronto Area through the Company's arrangement with Yellow Pages Group Co. Third quarter revenues increased 23% over the previous quarter.

"We continue to be pleased with our progress through the third quarter", according to Michael Durance, Chief Executive Officer. "We are beginning to see the traction and expansion that we anticipated within Canada, and are encouraged with our business development initiatives in the United States, Europe and South America. Further, and perhaps of most significance, is the continued buildup of talent in our customer service, research & development and business development teams. This increase in headcount is a vital underpinning for our anticipated growth."

Call Genie's net loss for the third quarter of 2006 was $1,652,781 compared to $374,521 for the same period in 2005. The net loss for the Company for the nine months ended September 30, 2006 was $4,191,732 compared to $1,393,381 for the same period in 2005. For the quarter ended September 30, 2006, the cash used in operating activities was $1,475,516 compared to cash used in operating activities of $336,598 for the third 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 September 30, 2006, Call Genie had a positive working capital of $7,792,926.

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 September 30, 2006 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

Call Genie's HelloYellow™ service is operational in the Greater Toronto Area by dialing 310YELO. 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.

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

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