WebTech Wireless Inc.
TSX : WEW

WebTech Wireless Inc.

April 01, 2010 16:20 ET

WebTech Wireless Closes Previously Announced Private Placement To Certain Members of Senior Management and Directors

VANCOUVER, BRITISH COLUMBIA--(Marketwire - April 1, 2010) - WebTech Wireless Inc. (TSX:WEW) ("WebTech" or the "Company"), a leading provider of vehicle fleet location-based services (LBS) and telematics technology, is pleased to announce that on April 1, 2010, it closed its previously announced, non-brokered private placement to certain members of senior management and the Company's Board of Directors (the "Private Placement"). Pursuant to the Private Placement, the Company issued 833,329 common shares at a price of $0.60 per common share to certain members of senior management and the Company's Board of Directors for gross proceeds of $499,997.40. The Private Placement was conditionally approved by the Toronto Stock Exchange (the "TSX") on March 30, 2010, and remains subject to final approval of the TSX.

The Company will use the proceeds of the Private placement for working capital and general corporate purposes.

The Private Placement was conducted to increase the equity interest of directors and members of senior management in the Company. It is anticipated that the Private Placement will help to further align the interests of members of senior management and the board of directors with those of the Company and its shareholders. The Private Placement also allows the new members of management and the Board of Directors to express their confidence in the Company to investors, and to provide a mechanism for the new CEO and certain directors to achieve share ownership that meets the Company's newly adopted compliance policies regarding ownership positions held by directors and officers.

Under the Private Placement, members of the board of directors and management directly or indirectly acquired Common Shares as follows, Brian Boychuk (83,333), Glen Brownlee (41,666), Paul Christie (41,666), Scott Edmonds (416,666), Andrew Moore (83,333), Owen Moore (108,333), Dru Narwani (16,666) and Peter W. Roberts (41,666) (collectively, the "Related Parties").

The Private Placement is a "related party transaction" as defined in Multilateral Instrument 61-101 – Take-Over Bids and Special Transactions ("MI 61-101"). The Company has relied on exemptions found in sections 5.5(a) and 5.7(a) of MI 61-101 to exempt the Company from conducting a formal valuation of, and obtaining minority approval for, the Private Placement. These exemptions were available to the Company because the total gross proceeds of the Private Placement was $499,997.40, or less than 1% of the Company's market capitalization.

Each of the Related Parties entered into a subscription agreement with the Company with respect to the Private Placement upon terms and containing representations and warranties by the parties standard to such transactions.

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 workforce management. The Company serves customers of all sizes in the transport, government, service delivery, insurance and OEM markets in over forty-one countries, including Fortune 500 companies. Specialized products include: Quadrant® fleet management software, InterFleet solutions for government, and NextBus real-time passenger information services for public 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 (CDN$) 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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