WebTech Wireless Inc.
TSX VENTURE : WEW

WebTech Wireless Inc.

October 31, 2005 14:51 ET

WebTech Wireless Reports $439,000 of Profit on $10,316,000 Revenue

BURNABY, BRITISH COLUMBIA--(CCNMatthews - Oct. 31, 2005) - WebTech Wireless Inc. (TSX VENTURE:WEW), a leading supplier of mobile telematics, today reported record revenue of $10.32 million for the year ended July 31, 2005, an increase of 57% over prior year revenue of $6.56 million. Net income for the year was $439,000 ($0.01 per common share) compared with $7,000 ($nil per common share) for the prior year. The Company reported a gross profit margin of 49.6% compared with 51.29% for the prior year.

WebTech reported an increase in sales in all geographic segments, particularly in Europe where revenues grew 173% due to the launch of WebTech's European office earlier in the year. Recurring revenue increased by 42% over the prior year as WebTech builds its subscriber base. Non-recurring hardware and software revenue increased by 63% over the prior year.

For the quarter ended July 31, 2005, WebTech reported revenues of $3.23 million representing 90% growth over revenues of the prior comparable quarter of $1.72 million. WebTech reported Net Income of $236,000 compared with a loss of ($228,000) in the prior comparable quarter. The company earned a gross profit margin of 50% compared with a gross profit margin of 52% for the same quarter of the prior year.

The Company reported total assets of $6.90 million (2004: $4.57 million) and total liabilities of $1.28 million (2004: $0.73 million) with a current ratio of 4.9:1 (2004: 1:5.7). Subsequent to July 31, 2005 the Company increased its current assets by $3.44 million pursuant to the exercise of 4.62 million share purchase warrants. The Company generated cash flow from operating activities prior to changes in non-cash working capital items for the year of $0.91 million compared with $83,000 for the prior year.

"WebTech has delivered strong revenue growth and profitability while maintaining technical proficiency and customer support. Revenue growth is due in part to the addition of clients with larger fleet sizes, in both government and commercial sectors; a trend we believe will continue to provide significant growth for WebTech in the 2006 year. Our strong balance sheet along with our proven ability to grow profitably, positions us well for significant expansion in the global telematics marketplace," comments Juliet Jones, Chief Financial Officer of WebTech Wireless Inc.

The Company announces that it will hold a conference call on November 1, 2005 at 10:00 AM PST 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. Conference call dial-in numbers are 1 (800) 894-4892 or 1 (416) 620-8834 (International Callers).

For further details, please view the company financial statements at www.sedar.com.

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.

Forward Looking Statements

This press release contains forward-looking statements involving risks and uncertainties pertaining to, but not limited to product plans, timing, content, and pricing of products, market and industry expectations, the wireless communications industry, the mobile fleet industry, and general economic and political conditions. Given the risks and uncertainties inherent in the markets and industries referred to in this press release, WebTech cannot guarantee that any forward looking statements will be realized.

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

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