WebTech Wireless Inc.
TSX VENTURE : WEW

WebTech Wireless Inc.

June 22, 2005 14:13 ET

WebTech Wireless Reports Record Revenue and Profitable Third Quarter

BURNABY, BRITISH COLUMBIA--(CCNMatthews - June 22, 2005) - WebTech Wireless Inc. (TSX VENTURE:WEW), a leader in Telematics location-based services, today reported record revenue for the third quarter ended April 30, 2005 of $2.92M, an increase of 58% from prior year's quarter. Revenue for the nine month period of $7M represents a 46% increase over revenue of the prior comparable nine month period. WebTech realized net income of $142,000 for the three month period and $203,000 for the nine month period.

WebTech reported an increase in sales in all geographic segments, particularly in Canada, where we realized 73% growth due to substantial add-on orders for existing customers as well as significant orders with new customers. Recurring revenue increased for the three and nine months by 16% and 39% respectively over the prior comparable periods. Hardware revenue increased for the three and nine months by 80% and 49% respectively over the prior comparable periods. The majority of hardware sales occurred in the final month of the quarter, which will result in an increase in recurring revenue in the fourth quarter. This recurring income stream contributes significantly to cash flow, long term value and bottom line.

Impacting net income for the quarter was an increase in investment in research and development activities to build product enhancements for new markets. In addition, the company increased its sales force and attendant costs to further penetrate North American and European markets.

The Company has identified the long-haul trucking market as a significant growth area and has developed a full service offering to meet its specific requirements. Long Haul trucking represents $97.9 billion of revenue generation in North America alone and to this end the Company has entered into paid trials with 10 Fortune 500 companies.

"The marketplace is undergoing significant restructuring with a recent trend of consolidation, which indicates the industry is forcing weaker competitors out while stronger ones are continuing to grow," said Anwar Sukkarie, President and Chief Executive Officer, WebTech Wireless. "Our proven ability to manage growth, maintain a solid level of customer service, while remaining profitable strengthens our position for continued growth."

Several noteworthy achievements were reached during the third quarter of fiscal 2005.

- Earnings per share of $0.01 for the nine months.

- Gross margins of 49% for products and services.

- Solid balance sheet with no debt, a $1,000,000 line of credit, $1,790,000 in inventory, and $848,000 of cash and a working capital ratio of 3.9:1.

For further details, please view company financials 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.

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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