WebTech Wireless Inc.

WebTech Wireless Inc.

March 08, 2005 07:00 ET

WebTech Wireless Announces Best Quarter Ever; WebTech Experiences Sales of $2.79M and Net Income of $329,000


NEWS RELEASE TRANSMITTED BY CCNMatthews

FOR: WEBTECH WIRELESS INC.

TSX VENTURE SYMBOL: WEW

MARCH 8, 2005 - 07:00 ET

WebTech Wireless Announces Best Quarter Ever; WebTech
Experiences Sales of $2.79M and Net Income of $329,000

BURNABY, BRITISH COLUMBIA--(CCNMatthews - March 8, 2005) - WebTech
Wireless Inc. (TSX VENTURE:WEW), a leader in Telematics location-based
services, today reported results for the second quarter ended January
31, 2005 of $2.79M in total revenue, an increase of 59% from $1.75M in
the second quarter of fiscal 2004 and an increase of 108% from the first
quarter of this fiscal year. Net income was $329,000 representing 216%
growth over the same quarter last year resulting in profitability for
the year. Recurring subscriber service revenues increased 32% over the
same quarter in 2004.

"We have seeded the market with trials that include large organizations
with significant growth potential and have focused on both North
American and International markets," said Anwar Sukkarie, President and
Chief Executive Officer. "38% of revenue growth in the last six months
is attributable to sales in Europe, while 36% is attributable to sales
outside of Europe and North America, a particularly notable period of
achievement."

WebTech exhibited a continued commitment to providing exemplary services
and support, evidenced in an expanded sales presence in North America
through the addition of 6 new strategically located sales centers
(Vancouver, Toronto, Chicago, Houston, Atlanta and Philadelphia),
increased head office space and an increased employee base. WebTech's
presence in Europe also increased, due to the acquisition of GlobeTrac's
business, resulting in additional offices in Milan and the UK.

Representing exciting opportunities for the company's future,
significant orders were received from new Corporate Client, CP Rail and
existing client City of Chicago. Additionally, WebTech forged two new
partnerships, one with Tracking World of Pakistan for $2M over the next
12 months, and one with Motabei Electronics Systems (MEI) in Saudi
Arabia for $2.2M over a two year period.

WebTech Wireless plans on continuing to focus on strategies to provide a
stronger foundation for growth, stronger industry partnerships and
alliances, and innovative products.

Several noteworthy achievements were reached during the second quarter
of fiscal 2005.

- Most successful quarter ever with gross revenue of $2,790,000.

- Revenue growth of 59% from the previous year's quarter and 108% from
the first quarter of this fiscal year.

- Recurring service revenue increased 32% compared to the same quarter
in the previous year.

- This Quarter, a net income of $329,000 results in profitability for
the year at $61,000.

- A combined gross margin of 49% for products and services.

- Significant orders from new corporate client, CP Rail and existing
client City of Chicago.

- Paid trials and pilot systems with 10 Fortune 500 companies.

- Paying customers in 41 countries on 5 continents worldwide with
substantial growth potential.

- Announced addition of R.H. (Dick) Pinder to the Company's Board of
Directors.

- Continued investing in infrastructure to support anticipated customer
growth.

- Expanded sales presence in North America through the addition of 6 new
strategically located sales centers (Vancouver, Toronto, Chicago,
Houston, Atlanta and Philadelphia), increased head office space and grew
the employee base with a head count increase of 71% over Q2 Fiscal 2004.
Further expansion occurred with the addition of two European offices in
Milan and the UK through the acquisition of GlobeTrac's business.

- Forged two new partnerships, one with Tracking World of Pakistan for
$2M over the next 12 months, and one with Motabei Electronics Systems
(MEI) in Saudi Arabia for $2.2M over a two year period.

- WebTech continues to have a solid balance sheet with no debt.

For further details, please view company financials at www.sedar.com

About WebTech Wireless Inc.

WebTech Wireless Inc. (TSX VENTURE:WEW) is a global Telematics,
location-based services provider that develops, manufactures, and
delivers turnkey wireless solutions designed to improve productivity and
profitability. WebTech products include wireless hardware and software
services running on cellular and satellite networks, and include
Automatic Vehicle Location, Mapping, Reporting, Vehicle Maintenance,
Driver Status, In-vehicle Telemetry, Messaging, In-vehicle Navigation,
and wireless application and Internet connectivity. WebTech is currently
providing devices and services worldwide in eight languages to over
forty-one countries covering five continents. WebTech's scalable
solutions are used by a broad range of small, medium, Fortune 500
companies and governments.

Forward Looking Statements

This press release contains forward-looking statements involving risks
and uncertainties pertaining to, but not limited to product plans,
timing, content, and pricing of products, market and industry
expectations, the wireless communications industry, the mobile fleet
industry, and general economic and political conditions. Given the risks
and uncertainties inherent in the markets and industries referred to in
this press release, WebTech cannot guarantee that any forward looking
statements will be realized.

Trademarks are the property of their owners.

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Contact Information

  • FOR FURTHER INFORMATION PLEASE CONTACT:
    WebTech Wireless International - Products and services
    Gordon Becker
    President
    (604) 419-8169
    gbecker@webtechwireless.com
    or
    WebTech Wireless - Sales and Marketing
    Deirdre O'Brien
    Marketing Communications Specialist
    (604) 419-8171
    dobrien@webtechwireless.com
    www.webtechwireless.com
    or
    Spirit Communications
    Asa Zanatta
    Press / Media Contact
    (604) 408-1389 or Cell: (604) 724-7755
    azanatta@spiritcommunications.ca
    or
    Pacific Orca Capital
    R. Joe Dhami
    Investor Relations Contact
    1-877-811-4518 ext. 236
    jdhami@shawcable.com
    The TSX Venture Exchange does not accept responsibility for the adequacy
    or accuracy of this release.