Datacom Wireless Corporation

Datacom Wireless Corporation

August 24, 2007 17:02 ET

Datacom Announces Second Quarter 2007 Financial Results

LAVAL, QUEBEC--(Marketwire - Aug. 24, 2007) -

To the attention of Business and Financial Editors

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 second quarter results for the three-month period ended June 30, 2007.

Second Quarter Highlights:

- Completed $10 million initial public offering;

- Second quarter revenues grew 15.4% to $2.05 million compared to the same period last year;

- Recurring revenues increased 18.3% year-over-year, representing 38.7% of total revenues;

- New customer acquisitions:

- 38 new Mobicom customers (commercial market)

- 756 new Mobilus customers (consumer market)

- 2,910 new Mobiguard customers (consumer market)

- Installation of 10,000th Mobiguard occurred this quarter;

- In June 2007, a total of 325 Mobilus units were sold and installed, which represents the largest number of units for a single month to date;

- Announcement of the first strategic acquisition of Vigil Locating Systems Corporation for a total consideration up to $1.0 million, including two hundred seventy-five thousand dollars ($275,000) in cash and approximately seven hundred twenty-five thousand dollars ($725,000) of assumed liabilities. This transaction will immediately contribute $75,000 in monthly recurring revenues which represents 29% of the current average monthly recurring revenue of Datacom. It is subject to meeting all closing conditions including approval by Vigil Locating Systems's shareholders and the regulatory authorities, and is expected to close on or before August 31, 2007.

For the three-month period ended June 30, 2007, the Company reported revenues of $2.05 million versus revenues of $1.78 million during the same period last year, up 15.4%. For the three-month period, net loss amounted to $1.245 million representing $0.04 per share based on the outstanding number of shares as at June 30, 2007 or $0.15 per share based on the weighted average number of shares at that date. This compares with a loss per share of $0.81 for the same period last year.

For the six-month period ended June 30, 2007, the Company reported revenues of $3.71 million versus $3.28 million during the same period last year, for a year-over-year growth of 13.1%. Net loss was $2.3 million versus $1.62 million for the corresponding period last year.

In the second quarter of 2007, the Company realized significant growth in its customer base through the addition of 38 new Mobicom commercial customers for a total of 335 Mobicom units sold, and a total of 3,666 new consumer market customers.

"We are pleased to have successfully completed Datacom's first full quarter as a public company," said Pierre Collins President and CEO of Datacom. "Only one year after introducing our Mobiguard product, we have already reached its 10,000th installation, and in June, we shipped and installed a record number of Mobilus units. In addition, we look forward to the closing of our first acquisition, which is strategic for our company and perfectly aligned with our growth strategy. Also, we expect this acquisition to be accretive to Datacom's earnings as early as Q1 of the fiscal year 2008."

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 release are the property of their respective owners.

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