WebTech Wireless Inc.

WebTech Wireless Inc.

December 20, 2006 15:58 ET

WebTech Wireless Inc. Announces $35 Million Bought Deal

BURNABY, BRITISH COLUMBIA--(CCNMatthews - Dec. 20, 2006) -


WebTech Wireless Inc. (the "Company") (TSX VENTURE:WEW) is pleased to announce that it has entered into an agreement with a syndicate of underwriters co-led by Wellington West Capital Markets Inc. and GMP Securities L.P. pursuant to which the underwriters have agreed to purchase 7,000,000 common shares of the Company on a bought deal basis, at a price of $5.00 per common share for aggregate gross proceeds to the Company of $35 million.

The underwriters have the option to purchase from the Company up to an additional 1,050,000 common shares at the issue price at any time prior to 30 days following the closing date for additional gross proceeds of approximately $5,250,000. The Company will file a preliminary short form prospectus in each of the provinces of Alberta, British Columbia, Manitoba, Ontario and Saskatchewan for the purpose of qualifying the common shares for distribution to the public as soon as possible.

The offering is scheduled to close on or about January 16, 2007 and is subject to certain conditions including, but not limited to, the receipt of all necessary approvals, including the approval of the TSX Venture Exchange and the securities regulatory authorities.

The proceeds of the offering will be used for the expansion of sales and support services, the undertaking of consumer automotive initiatives, working capital and general corporate expenses.

The securities being offered have not been, nor will they be, registered under the United States Securities Act of 1933, as amended, and may not be offered or sold in the United States or to, or for the account or benefit of, U.S. persons absent registration or an applicable exemption from registration requirements. This press release shall not constitute an offer to sell or the solicitation of an offer to buy nor shall there be any sale of the securities in any state in which such offer, solicitation or sale would be unlawful.

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. For more information, please visit www.webtechwireless.com.

The TSX Venture Exchange does not accept responsibility for the adequacy or accuracy of this release.

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