SOURCE: Unity Wireless Corporation

May 15, 2007 16:59 ET

Unity Wireless Reports Results for First Quarter of 2007

Revenues Increased 90% Over Q1-2006; Losses Decreased 6%; Gross Margin Increased to 29%

BELLINGHAM, WA -- (MARKET WIRE) -- May 15, 2007 -- Unity Wireless Corporation (OTCBB: UTYW) today released the company's first quarter 2007 financial report 10-QSB.

Highlights for the first quarter of 2007, as compared to the first quarter of 2006, include:

--  Revenues almost doubled with an increase of $1 million to almost $2.2
    million.
--  Gross margin percentage rose about 28% from 22.8% to 29.4%.
--  The loss for the period was decreased by 6%.
--  Current and total liabilities were decreased by $1.8million and $2
    million respectively.
    
Even though the loss for the period went down slightly, with the addition of three new product lines from the 2006 acquisitions and subsequent new product developments, Research and Development (R&D) expenses increased by $348 thousand. By the same token, after the acquisitions and consolidation activities, Unity has a larger sales force covering a truly global marketplace, including new territories and major accounts in Russia, India, and South East Asia. As a result, Sales and Marketing (S&M) expenses increased by $361 thousand.

About Unity Wireless

Unity Wireless is a world class provider of wireless coverage enhancement solutions for cellular operators and custom subsystems for network infrastructure manufacturers. For more information about Unity Wireless, visit www.unitywireless.com.

Forward-Looking Statements

Forward-looking statements in this release are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. The words "believe," "expect," "feel," "plan," "anticipate," "project," "could," "should" and other similar expressions generally identify forward-looking statements. Readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of their dates. These forward-looking statements are subject to a number of risks and uncertainties, including without limitation, changes in external market factors including the economy, and other risks and uncertainties indicated in the Company's most recent SEC filing on form SB-2. Actual results could differ materially from the results referred to in the forward-looking statements.

Contact Information

  • Investor Contacts:
    Talal Fouani
    Wall Street Financial Corp.
    (403) 616-8472

    Mike Mulshine
    Osprey Partners
    (732) 292-0982

    Noam Yellin
    Middle East Investor Relations
    +972 (3) 695-4333