Call Genie Inc.

Call Genie Inc.

November 20, 2007 08:30 ET

Call Genie Announces Third Quarter Results for Fiscal 2007

Company expects well over 200% revenue growth rate and profitability in 2009

TORONTO, ONTARIO--(Marketwire - Nov. 20, 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 third quarter results for the three months ended September 30, 2007.

Revenues for the three-month period ended September 30, 2007 increased to $509,859 from $141,583 for the same three-month period in 2006. Revenues for the nine-month period ended September 30, 2007 increased to $1,156,578 from $437,075 for the same nine-month period in 2006. The increase in revenue is mainly attributable to a new agreement with Yellow Pages Group of Canada and implementation fees related to the contract signed with R.H. Donnelley. Overall, third quarter revenues increased 44% over the previous quarter.

Call Genie's net loss for the third quarter of 2007 was $3,103,593 compared to $1,652,781 for the same period in 2006. The net loss for the Company for the nine months ended September 30, 2007 was $8,330,314 compared to $4,191,732 for the same period in 2006. For the quarter ended September 30, 2007, the cash used in operating activities was $3,262,669 compared to cash used in operating activities of $1,475,516 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 and research and development activities.

As at September 30, 2007, Call Genie had a positive working capital of $27,526,996.


"The third quarter was exceptional for Call Genie in many respects," according to Michael Durance, Chief Executive Officer. "We integrated our EVD Service within the TELUS 411 directory assistance service, announced a long-term agreement with R.H. Donnelley and began work with Cellwand on localized search in the United States. In addition, the recently closed acquisition of BTS Logic Europe ApS extends our product line and provides for many cross-selling opportunities. Our technologies and employee base, now in excess of 110 full-time employees, are very robust and will be the key to supporting our continued business growth. We anticipate $7M to $9M in revenues in 2008 and a revenue growth rate well in excess of 200% for 2009. This should result in net profitability for 2009."

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, 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 and on the Call Genie website at

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

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, 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 emergence or intensification of competition, the emergence of competing business models, the availability of financial resources (including third-party financing), prevailing interest and exchange rates and new laws (domestic or foreign). 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

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

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