WebTech Wireless Inc.

WebTech Wireless Inc.

January 31, 2011 04:00 ET

WebTech Wireless Announces Non-Cash Charge Related to 2010 Year-End Cost of Goods Sold

VANCOUVER, BRITISH COLUMBIA--(Marketwire - Jan. 31, 2011) - WebTech Wireless Inc. (TSX:WEW), a leading provider of vehicle fleet location-based services and telematics technology, announces that it will take a one-time charge against cost of goods sold arising from its year-end review of inventory.

During the course of its year-end procedures for the year ended December 31, 2010, the Company determined that the book value of inventory held by the Company at its Toronto manufacturing facility was overstated by as much as $500,000. A review is underway to determine the exact amount of the adjustment required and the root cause of the difference between the actual inventory amount and the amount carried in financial records. While the review is not complete, preliminary results show that the difference is attributable to a number of factors, including warranty returns and replacements, replacement inventory held in customer locations and service vehicles, and manufacturing shrinkage.

Further details of the results of the review, if any, will be provided following completion of the year-end audit and the release of the annual financial results, currently anticipated for late March, 2011.

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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