WebTech Wireless Inc.
TSX : WEW

WebTech Wireless Inc.

February 09, 2011 08:17 ET

WebTech Wireless Announces $4 Million Bought Deal Private Placement Financing

VANCOUVER, BRITISH COLUMBIA--(Marketwire - Feb. 9, 2011) - WebTech Wireless Inc. (TSX:WEW) -

NOT FOR DISSEMINATION IN THE UNITED STATES OR OVER UNITED STATES NEWSWIRE SERVICES.

WebTech Wireless Inc., a leading provider of vehicle fleet location-based services and telematics technology announces that it has entered into an agreement with Versant Partners Inc. on behalf of a syndicate of underwriters (collectively, the "Underwriters") to sell 10,000,000 common shares (the "Common Shares") at a price of $0.40 per Common Share for gross proceeds of $4,000,000 on a bought deal private placement basis (the "Offering").

The Company has also granted to the Underwriters an option, exercisable at any time until 5:00 pm (Toronto time) on the second business day preceding the closing of the Offering, to purchase up to 5,000,000 additional Common Shares of the Company at a price of $0.40 per Common Share for additional gross proceeds to the Company of up to $2,000,000.

Scott Edmonds, WebTech Wireless CEO said, "This transaction strengthens our balance sheet and allows us to continue building on the momentum we have established in our business based on the changes we have made in the past year. With this new capital we intend to expand our software as a service model with existing and new customers and verticals in order to grow our Telematics market share."

The Company plans to use the net proceeds from the Offering for working capital and for general corporate purposes.

The Offering is scheduled to close on or about March 2, 2011 and is subject to certain conditions typical for a transaction of this nature and the receipt of all necessary regulatory approvals, including the approval of the Toronto Stock Exchange.

The Common Shares to be issued pursuant to the Offering will be subject to a restricted resale period of four months and one day, such period to commence upon the closing of the Offering.

This news release is not an offer of Common Shares for sale in the United States. The Common Shares have not been and will not be registered under the U.S. Securities Act of 1933, as amended, and may not be offered or sold in the United States absent registration or an applicable exemption from registration. This press release shall not constitute an offer to sell or solicitation of an offer to buy nor shall there be any sale of the above described securities in any jurisdiction in which such offer, solicitation or sale would be unlawful.

About WebTech Wireless

WebTech Wireless Inc. (TSX:WEW) is a provider of vehicle fleet location-based services (LBS) and telematics technology. It develops, manufactures and supports end-to-end wireless solutions that improve the productivity, profitability, environmental compliance and safety of vehicle fleets. Its comprehensive suite of products and services include: automatic vehicle location (AVL), mapping, vehicle diagnostics, CO2 reporting, navigation, messaging, and mobile resource management. The Company serves customers of all sizes in the transport, government, service, insurance and OEM markets in over forty-one countries, including Fortune 500 companies. Specialized products include: Quadrant® commercial fleet solutions, InterFleet® solutions for government, and NextBus® real-time passenger information services for transit fleets. For more information, please visit www.webtechwireless.com.

This News Release may contain forward-looking statements involving risks and uncertainties pertaining to, but not limited to, product plans, timing, content, pricing of products, market and industry expectations, the wireless communications and mobile fleet industries, and general economic and political conditions. Given the risks and uncertainties inherent in the markets and industries referred to in this News Release, WebTech Wireless cannot guarantee that any forward-looking statements will be realized. • All amounts in Canadian dollars (CAD$) unless otherwise noted. • Trademarks are the property of their owners.

The Toronto Stock Exchange does not accept responsibility for the adequacy or accuracy of this release.

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