WebTech Wireless Inc.
TSX : WEW

WebTech Wireless Inc.

March 12, 2008 16:30 ET

WebTech Wireless Reports a 43% Increase to More Than $5 Million in Quarterly Revenue for the Second Quarter of FY 2008

VANCOUVER, BRITISH COLUMBIA--(Marketwire - March 12, 2008) - WebTech Wireless Inc. (TSX:WEW), a leading provider of location-based and fleet Telematics services, today reported revenue of $5.2 million for the quarter ended January 31, 2008 and six months revenue of $9.9 million. Reported results represent an increase of 43% over prior year same quarter revenue of $3.7 million and an increase of 31% over prior year, year to date revenue. Net loss for the quarter was $0.7 million ($0.01 per common share) compared with a loss of $0.4 million ($0.01 per common share) for the prior comparable quarter. Year to date loss is $1.8 million ($0.03 per common share) vs. a prior year to date loss of $359 thousand ($0.01 per common share).

The Company continued the trend established in Q1 realizing an increase in revenues in all markets outside of South America. Revenue year over year from sales in North America increased by 57% with an increase in sales of 61% in Europe year over year as sales to government fleets and small to medium commercial fleets increased. Included in the North American sales is a 112% increase in Canadian sales in the quarter. Year to date, these sales have also increased by 112% vs. prior year.

The Company reported a gross profit margin for the quarter of 54% compared with 47% for the prior year quarter. Gross profit margin on hardware and other non-recurring revenue in the quarter grew by approximately seven percentage points aided by a change in accounting for the foreign exchange impact on intercompany balances and a weakened Canadian dollar in the quarter. For the six month period, gross profit margin was reported as 50% vs. 48% for the prior year, representing the negative effect of a strong Canadian dollar in the six month period and the positive impact of the aforementioned change in accounting.

At quarter end, the Company reported total assets of $35 million (July 31, 2007: $37 million) and working capital of $29 million (July 31 2007: $32 million).

"With 43% and 31% growth in revenue year over year for the quarter and year to date respectively and just under $10 million in total revenue we continue to ship record numbers of locators across all segments of our business and in all geographies save Brazil," comments Scott Edmonds, Chief Financial Officer of WebTech Wireless. "While it is true that we lost money in the quarter, we have reduced our foreign exchange exposure, and are beginning to see the fruits from our earlier investments in infrastructure and expanded operations capability as reflected in the numbers of locators we are able to sell, ship and service. We have also expanded the number of enterprise opportunities we are able to prime -- such as the recently announced win with GNP in Mexico, and other long term, large scale opportunities."

The Company announces that it will hold a conference call on March 12, 2008 at 5:00 PM Eastern Time and that a recording of the conference call will be posted on the Company's website at www.webtechwireless.com within 24 hours of the call. Interested parties may participate in the call by dialing 1 800 753 0594 (outside North America +1 212 231 2938).

For further details, please view the Company's financial statements and management's discussion and analysis at www.sedar.com.

About WebTech Wireless Inc.

WebTech Wireless Inc. (TSX:WEW) is a global Telematics, location-based services provider that develops, manufactures, and delivers turnkey wireless solutions designed to improve productivity and profitability. WebTech Wireless products include wireless hardware and software services running on cellular and satellite networks, and include Automatic Vehicle Location, Mapping, Reporting, Vehicle Diagnostics, Driver Status, In-vehicle Telemetry, Messaging, In-vehicle Navigation, and wireless application and Internet connectivity. WebTech Wireless is currently providing devices and services worldwide in eight languages to over forty-one countries covering five continents. WebTech Wireless' scalable solutions are used by a broad range of small, medium and Fortune 500 companies and by governments. For more information, please visit www.webtechwireless.com.

Trademarks are the property of their owners.




WEBTECH WIRELESS INC.
CONSOLIDATED BALANCE SHEET
(Amounts in 000's)

31-Jan-08 31-Jul-07
------------ -----------
(Unaudited) (Audited)
ASSETS
Current
Cash and cash equivalents $ 19,168 $ 22,344
Accounts receivable, net of allowance 4,819 4,128
Inventory, net of allowance 8,413 7,640
Prepaid expenses and deposits 864 1,583
------------ -----------

33,264 35,695
------------ -----------

Property and equipment (Note 7) 1,565 1,021
Property under development (Note 7) 41 -
------------ -----------

$ 34,870 $ 36,716
------------ -----------
------------ -----------

LIABILITIES
Current
Accounts payable and accrued liabilities $ 4,281 $ 3,533
Deferred lease inducement 103 110
Current portion of deferred revenue 359 260
------------ -----------
4,743 3,903

Long term
Deferred revenue 114 -
------------ -----------

4,857 3,903
------------ -----------

SHAREHOLDERS' EQUITY
Share capital (Note 8) 59,730 60,142
Contributed surplus (Note 9) 1,296 858
Deficit (31,013) (28,187)
------------ -----------

30,013 32,813
------------ -----------

$ 34,870 $ 36,716
------------ -----------
------------ -----------

Commitments (Note 13)

APPROVED BY THE DIRECTORS:

"Signed" "Signed"
-------------- ------------------
Anwar Sukkarie R.H. (Dick) Pinder

The accompanying notes form an integral part of these financial statements.


WEBTECH WIRELESS INC.
CONSOLIDATED STATEMENT OF OPERATIONS, COMPREHENSIVE LOSS AND DEFICIT
(Amounts in 000's except per share amounts)
(Unaudited)

Three months ended Six months ended

31-Jan-08 31-Jan-07 31-Jan-08 31-Jan-07
------------ -------------- ------------ --------------
(amended and (amended and
restated) restated)

Revenue $ 5,209 $ 3,639 $ 9,920 $ 7,546

Cost of goods
sold 2,414 1,944 4,927 3,937
------------ -------------- ------------ --------------

Gross profit 2,795 1,695 4,993 3,609
------------ -------------- ------------ --------------

Expenses
Marketing and
sales 1,580 1,175 3,028 2,011
Research and
development 912 875 1,746 1,510
General and
Administration 1,116 782 1,986 1,225
Amortization 145 89 275 165
------------ -------------- ------------ --------------

3,753 2,921 7,035 4,911

------------ -------------- ------------ --------------
Loss before
other items (958) (1,226) (2,042) (1,302)

Other items
Interest income 212 87 473 175
Foreign
exchange gain
(loss) 36 746 (224) 768

------------ -------------- ------------ --------------
Net loss for
the period $ (710) $ (393) $ (1,793) $ (359)
------------ -------------- ------------ --------------

Deficit,
beginning of
the period (29,270) (1,803) (28,187) (1,837)
Loss and
Comprehensive
Loss for the
period (710) (393) (1,793) (359)
Shares
repurchased -
excess of
purchase price
over carrying
value (1,034) - (1,034) -

------------ -------------- ------------ --------------
Deficit, end
of period $ (31,014) $ (2,196) $ (31,014) $ (2,196)
------------ -------------- ------------ --------------
------------ -------------- ------------ --------------

Accumulated
other
comprehensive
earnings
Balance -
beginning
and end of
period $ - $ - $ - $ -

Basic and fully
diluted (loss)
earnings per
share $ (0.01) $ (0.01) $ (0.03) $ (0.01)
Weighted
average shares
outstanding
during the year 58,251,293 49,261,516 58,264,656 45,589,543


WEBTECH WIRELESS INC.
CONSOLIDATED STATEMENT OF CASH FLOWS
(Amounts in 000's) (Unaudited)

Three months ended Six months ended

31-Jan-08 31-Jan-07 31-Jan-08 31-Jan-07
--------- --------- --------- ---------
(amended and (amended and
restated) restated)

Operating Activities
Net loss for the period $ (710) $ (393) $ (1,793) $ (359)
Add items not affecting
cash:
Amortization 145 89 275 165
Stock based compensation 340 128 494 171
Amortization of leasehold
inducement (4) - (7) -
--------- --------- --------- ---------

(229) (176) (1,031) (23)

Changes in non-cash working
capital items related to
operations:
Accounts receivable (823) (788) (691) (1,058)
Inventory (953) (1,847) (773) (3,757)
Prepaid expense and
deposits 398 (3,528) 719 (4,246)
Inventory shipped
(unrecognized revenue) - (3,557) - (3,557)
Accounts payable and
accrued liabilities 496 764 748 531
Deferred Revenue 165 499 213 585
--------- --------- --------- ---------

(946) (8,633) (815) (11,525)
--------- --------- --------- ---------

Financing Activities
Common shares issued, net
of costs 66 37,994 153 38,260
Shares repurchased (Note 8) (1,655) - (1,655) -
Loan receivable - (2,387) - (2,387)
--------- --------- --------- ---------

(1,589) 35,607 (1,502) 35,873
--------- --------- --------- ---------

Investing Activities
Purchase of intangible
assets - (19) - (54)
Purchase of capital assets (478) (352) (575) (422)
Purchase of property under
development (41) - (284) -
--------- --------- --------- ---------

(519) (371) (859) (476)
--------- --------- --------- ---------

Net increase (decrease) in
cash during the period (3,054) 26,603 (3,176) 23,872

Cash, beginning of period 22,222 7,909 22,344 10,640
--------- --------- --------- ---------

Cash, end of period $ 19,168 $ 34,511 $ 19,168 $ 34,511
--------- --------- --------- ---------
--------- --------- --------- ---------

Cash and cash equivalents
consist of:
Cash $ 19,168 $ 31,511 $ 19,168 $ 31,511
Term deposits - 3,000 - 3,000

--------- --------- --------- ---------
$ 19,168 $ 34,511 $ 19,168 $ 34,511
--------- --------- --------- ---------
--------- --------- --------- ---------

Supplemental cash flow
information
Interest paid $ 1 $ - $ 1 $ -
Income taxes paid - - - -

Non-cash Transactions
Purchase of capital
assets $ 243 $ - $ 243 $ -
Purchase of property
under development (243) - (243) -
--------- --------- --------- ---------
$ - $ - $ - $ -
--------- --------- --------- ---------


The Toronto Stock Exchange does not accept responsibility for the adequacy or accuracy of this release.

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