WebTech Wireless Inc.
TSX : WEW

WebTech Wireless Inc.

February 25, 2011 04:00 ET

WebTech Wireless Announces Underwriters Exercise Over-Allotment Option for Total Gross Proceeds of $6M

VANCOUVER, BRITISH COLUMBIA--(Marketwire - Feb. 25, 2011) - WebTech Wireless Inc. (TSX:WEW) -

THIS RELEASE IS INTENDED FOR DISTRIBUTION IN CANADA ONLY AND IS NOT TO BE DISTRIBUTED TO UNITED STATES NEWSWIRE SERVICES OR DISSEMINATED IN THE UNITED STATES.

WebTech Wireless Inc. announced today that the syndicate of underwriters of the Company's previously announced bought deal private placement offering (the "Offering"), led by Versant Partners Inc., have delivered a notice to the Company of their intention to exercise the entire over-allotment option to purchase 5,000,000 additional common shares of WebTech at the offering price of $0.40 per common share. On closing, the over-allotment is expected to provide an additional $2,000,000 in gross proceeds to WebTech. The closing for the purchase of the common shares to be issued pursuant to the Offering is anticipated to occur on or about February 28, 2011.

The total gross proceeds to the Company from the Offering of 15,000,000 common shares, including the exercise of the over-allotment, are expected to be approximately $6,000,000. The Company plans to use the net proceeds from the Offering for working capital and for general corporate purposes. 

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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