WebTech Wireless Inc.

WebTech Wireless Inc.

January 05, 2011 04:01 ET

WebTech Wireless Announces Stock Option Cancellation Program

VANCOUVER, BRITISH COLUMBIA--(Marketwire - Jan. 5, 2011) - WebTech Wireless Inc. (TSX:WEW), a leading provider of vehicle fleet location-based services (LBS) and telematics technology, announces that it has completed a voluntary stock option cancellation program offered to all holders of stock options with an exercise price of $0.90 per share and above.

Under the terms of the program, options to acquire an aggregate of approximately 3.8 million common shares were voluntarily surrendered for cancellation by the holders. Following this cancellation, there will be a total of 4.7 million options outstanding with strike prices ranging from $0.37 to $0.75. This cancellation is expected to result in a one-time non-cash charge in Q4 2010 of $1.1 million.

"Stock options are a fundamental part of WebTech Wireless' overall employee compensation program and an important non-cash instrument to incent and drive performance. However, the perceived value to our employees can be distorted by exercise prices that reflect historical volatility rather than future performance. By eliminating these options, we can improve the effectiveness of our compensation package and reduce the total number of shares currently under option," said Andrew Morden, WebTech Wireless' Chief Financial Officer.

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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