Wavefront Technology Solutions Inc.

Wavefront Technology Solutions Inc.

July 30, 2009 19:03 ET

Wavefront Technology Solutions Inc.: Third Quarter Results

Primawave License Signed with Leading Environmental Consulting Firm

EDMONTON, ALBERTA--(Marketwire - July 30, 2009) - Wavefront Technology Solutions Inc. ("Wavefront" or the "Corporation") (TSX VENTURE:WEE) (PINK SHEETS:WEESF), a leader in technology development and implementation for improved oil recovery and optimized groundwater remediation announces its financial and operating results for the third quarter ended May 31, 2009.

The net loss for the nine months ended May 31, 2009 was $4,313,983, or $0.06 per basic and diluted share excluding the non-cash write-downs of oilfield related property, plant and equipment and intangible assets of $1,689,148. No write-down was provided for the last three month months ended May 31, 2009. Net losses for the third quarter were $6,003,131, or $0.08 per basic and diluted share compared to the net loss of the third quarter of 2008 of $3,341,583, or $0.06 per basic and diluted share. Wavefront's consolidated revenue in the third quarter of 2009 was $1,078,825, compared to $698,758 in the second quarter of 2009.

Commenting on the results, President and CEO Brett Davidson said, "Third quarter revenues were negatively impacted by the continued downturn in the North America energy sector attributed to the on-going recession. Revenues related to the tubing pump and bailer product lines were particularly affected by lower drilling activity. Weaker revenues in the tubing pump and bailer product lines were offset by continued increases in Powerwave and Primawave revenue in the energy and environmental sectors respectively. As commodity prices stabilize, the Corporation anticipates the installation of all Powerwave systems associated with current contracts and the securing new clients for both Powerwave and Primawave."

"Despite unfavourable conditions in North America during the period with a focused strategy of introducing both Powerwave and Primawave into the international marketplace through a strong distribution network, we believe that the Corporation will be awarded contracts in these markets in the near term."

Total assets of the Corporation decreased by $5,031,223 to $26,915,504 from the prior year end. The decrease was primarily due to a decrease of $5,263,701 in cash that was used to fund working capital. Assets were also affected by the Corporation's Acquisition of Predator Pumps (which increased its property, plant and equipment by $213,490), the manufacturing of Powerwave and Primawave systems to meet the terms of the existing agreements, and its decision to write-down its oilfield related property, plant and equipment and Royalty Rights.

As at May 31, 2009, the Corporation had working capital of $16,444,849. The Corporation believes that its working capital position will decline despite having a significant increase in the number of Powerwave contracts in-hand, as Wavefront cannot control or dictate the installation schedules. It is believed that, as each client experiences positive Powerwave results, further uptake of the technology will require the Corporation to increase its Powerwave inventories.

The above financial highlights should be read in conjunction with the unaudited consolidated financial statements and management discussion and analysis of results for Wavefront's most recently completed quarter, ended May 31, 2009, which was filed on SEDAR on July 30, 2009.

Wavefront would also like to announce that it has entered into a non-exclusive licensing agreement for Primawave in the territories of Australia and New Zealand with Coffey Environments ("Coffey") a subsidiary of ASX-listed Coffey International Inc. Coffey Environments is one of the largest environmental consulting firms in the southern hemisphere employing about 600 people and has built a lasting reputation throughout Australia, Asia Pacific, and abroad.

Brett Davidson commented, "Wavefront is pleased to have entered into a licensing agreement with Coffey who has a solid reputation in the environmental sector. Coffey views Primawave as a game changing differentiator for remedial strategies providing them a technological advantage over competitive environmental firms. Wavefront looks forward to a positive relationship with Coffey and a growing Primawave business in a jurisdiction where there are approximately 160,000 contaminated sites."

About Wavefront Technology Solutions Inc.

Wavefront specializes in designing and developing leading-edge techniques for oil well stimulation, improved oil recovery, and environmental groundwater remediation.



D. Brad Paterson, CFO & Director

Cautionary Disclaimer - Forward Looking Statements

Certain statements contained herein regarding Wavefront and its operations constitute "forward-looking statements" within the meaning of Canadian securities laws and the United States Private Securities Litigation Reform Act of 1995. All statements that are not historical facts, including without limitation statements regarding future estimates, plans, objectives, assumptions or expectations or future performance, are "forward-looking statements". In some cases, forward-looking statements can be identified by terminology such as ''may'', ''will'', ''should'', ''expect'', ''plan'', ''anticipate'', ''believe'', ''estimate'', ''predict'', ''potential'', ''continue'' or the negative of these terms or other comparable terminology. We caution that such "forward-looking statements" involve known and unknown risks and uncertainties that could cause actual results and future events to differ materially from those anticipated in such statements. Such factors include fluctuations in the acceptance rates of Wavefront's Powerwave and Primawave Processes, demand for products and services, fluctuations in the market for oil and gas related products and services, the ability of Wavefront to attract and maintain key personnel, technology changes, global political and economic conditions, and other factors that were described in further detail in Wavefront's continuous disclosure filings, available on SEDAR at www.sedar.com . Wavefront expressly disclaims any obligation to up-date any "forward-looking statements", other than as required by law.

The TSX Venture Exchange neither approves nor disapproves the contents of this release which was prepared solely at the discretion of management.

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