Datacom Wireless Corporation

Datacom Wireless Corporation

May 15, 2008 17:22 ET

Datacom Announces First Quarter 2008 Financial Results

LAVAL, QUEBEC--(Marketwire - May 15, 2008) - Datacom Wireless Corporation ("Datacom" or "the Company")(TSX VENTURE:DAT), a Canadian leader in the design, development and marketing of mission critical vehicle fleet management and theft prevention and recovery solutions today announced its financial results for the three-month period ended March 31, 2008.

First Quarter Growth Highlights:

- During the quarter, the Company added:

- 29 new Mobicom clients (25 in 2007);
- 301 Mobicom units were sold (350 in 2007)
- 426 new Mobilus clients (382 in 2007);
- 2,812 new Mobiguard clients (1,395 in 2007);
- 180 new Vigil units;

- 2,676 Web-based fixed wireless management systems (Rosemount 753R with
ITraX) have been sold to date;

For the three-month period ended March 31, 2008, the Company recorded revenue of $2.20 million compared to $1.66 million during the same period last year, which represents a 32.3% increase in revenues from 2007 first quarter figures. The revenues benefited from the growth in the customer base that is generating recurring revenues.

For the three-month period ended March 2008, the Company's recurring revenues increased by 53.3% year-over-year from $0.75 million in the first quarter of 2007 to $1.15 million for the same period in 2008. Recurring revenues represent 52.0% of total revenue to date in 2008 compared to 45.2% of total revenue generated in the first quarter of fiscal 2007.

The Company initiated a global review of its activities in the first quarter with the objective aimed at better meeting the growth and profitability targets that it had established. A detailed analysis of its products, services and market will enable the Company to formulate a plan of action focusing on:

- Upgrading the Mobicom product to respond better to customer
expectations with respect to use and functionality.

- Developing a Mobicom product with tiered services with price and
functionality attuned to a broader range of prospective clients.

- Focusing the R&D team's efforts over the next few months to meet the
goals for upgrading the Mobicom product.

- Developing a sales strategy to optimize the sales structure and to
acquire tools needed to maximize Mobicom sales.

- Reducing operating expenses. (In April 2008, the Company laid off
employees, resulting in annual savings estimated to be more than
$600,000. The Company will continue to review all activities to
optimize costs).

The Company's financial position as at March 31, 2008 is healthy. Datacom had cash and cash equivalents of $4.59 million, compared to $6.12 million as at December 31, 2007.

"We are pleased with the continuous growth of our revenues on sales of the Mobicom product," noted Pierre Belanger, Acting President and CEO of Datacom. "We plan to improve gross margins in dollars and to optimize operating expenses, which will result in increased revenues and earnings in the periods to come."

About Datacom Wireless Corporation:

Founded in 1999, Datacom has grown to become one of the Canadian leaders in the design, development and marketing of mission critical vehicle fleet management and theft prevention and recovery solutions. Its products and services use wireless communications and satellite-based tracking technologies (GPS) and a state-of-the-art ASP information portal.

Datacom offers a portfolio of products and services for both commercial and consumer markets. Mobicom™ solutions enable fleet managers to view and track, 24-7 and in real-time, their vehicles on a virtual map in addition to generating valuable internal reporting data. Mobilus™ is a theft deterrent, detection and stolen vehicle recovery system that permits real-time tracking and recovery. Based on the Internet, this system enables the users to track their vehicles at all times. Mobiguard™ is a stand-alone wireless immobilizer for theft prevention and possesses a revolutionary technology that immobilizes a vehicle by disabling the starter circuit when a remote is not activated at the moment of ignition. For further information, visit

Forward-Looking Statements:

This press release includes certain statements that may be deemed "forward-looking statements". Forward-looking statements are frequently characterized by words such as "plan", "expect", "project", "intend", "believe", "anticipate", "estimate", and other similar words, or statements that certain events or conditions "may" or "will" occur. All statements in this release, other than statements of historical facts, that address future events or developments that the Company expects or anticipates, are forward-looking statements. Although the Company believes the expectations expressed in such forward-looking statements are based on reasonable assumptions, such statements are not guarantees of future performance and actual results or developments may differ materially from those in forward-looking statements. Factors that could cause actual results to differ materially from those in forward-looking statements include market prices and general economic, market or business conditions. There can be no assurance that forward-looking statements will prove to be accurate, as results and future events could differ materially from those anticipated statements. The Company undertakes no obligation to update forward-looking statements if circumstances or management's estimates or opinions should change. The reader is cautioned not to place undue reliance on forward-looking statements.

All trademarks and brands mentioned in this Press Release are the property of their respective owners.

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