Wireless Age Communications, Inc.
OTC Bulletin Board : WLSA

Wireless Age Communications, Inc.

March 30, 2006 09:09 ET

Wireless Age Releases Fiscal 2005 Results

MISSISSAUGA, ONTARIO--(CCNMatthews - March 30, 2006) - Wireless Age Communications, Inc. (OTCBB:WLSA) announced its results for fiscal year 2005 today, reporting that it attained record revenues of $24,225,811. The company posted $20,415,477 in product sales revenue and $3,810,334 in commissions and residual revenues during fiscal 2005, compared to $12,600,027 and $2,609,134, respectively, during fiscal 2004. Growth between the periods was over 62% in product sales revenue and 46% in commissions and residual revenues. The overall revenue growth rate was 59% including organic growth of 25% (18% in retail and 7% in the commercial segments) and 34% from acquisitions.

The Company recorded a loss of $4,639,894 ($0.17 per share) in fiscal 2005 compared to a loss of $2,043,372 ($0.09 per share) in the previous fiscal year. The losses over the last two fiscal years arise primarily from goodwill and intangible asset impairment charges of $5,130,334 in 2005 and $1,216,146 in 2004.

"After careful consideration we decided to record a $5.1 million impairment charge of goodwill and intangible assets on December 31, 2005." said Gary Hokkanen, Wireless Age's CFO. "As at September 30, 2005 approximately 49% of our consolidated assets were goodwill and intangibles. After this impairment charge goodwill and intangible assets represent only 17% of consolidated assets.

Brad Poulos, Wireless Age's CEO commented, "I am pleased that we were able to grow the business so dramatically last year. We generated earnings from operations prior to the impairment charge, and I'm confident that 2006 will be the year we achieve bottom line profitability and reward investors for their patience. The company is very well-positioned in each of its markets, and our industry is enjoying impressive growth."

John Simmonds, Chairman of Wireless Age also stated, "Late in 2005, as a natural progression in the development of Wireless Age, I passed the CEO role to Brad Poulos, who came along with the mmwave acquisition early in the year. Brad and his team are focused on executing the strategic plan, positioning the Company for substantial growth, and keeping an eye out for suitable business acquisitions."

For all Wireless Age investor relations needs, investors are asked to visit the Wireless Age IR Hub at http://www.agoracom.com/IR/WirelessAge where they can post questions and receive answers, or simply review questions and answers posted by other investors. Alternatively, investors are able to e-mail all questions and correspondence to WLSA@agoracom.com where they can also request addition to the investor e-mail list to receive all future press releases and updates in real time.

About Wireless Age Communications Inc.

Wireless Age Communications Inc. owns and operates four Strategic Business Units.

Wireless Age retail outlets sell next generation wireless products and services to business and individual end users in Saskatchewan and Manitoba. Wireless Source distributes prepaid phone cards, wireless accessories, land mobile radios, batteries and ancillary electronics products to dealers throughout North America. mmwave does specialty distribution and network engineering and integration, for carriers and manufacturers of communications equipment in Canada. Wireless Works operates broadband public access and private networks in Southern Ontario, and develops and deploys consumer and commercial products for those networks.

The company is a recognized leader in the wireless industry in Canada and is a member of the WiMax forum, as well as a very active member of the Canadian Wireless Telecommunications Association.

Wireless Age has an investment in Midland International Corporation, which plans to market low cost, wireless devices including cellular phones.

Note: This press release contains "forward looking statements" as defined in the Private Securities Litigation Reform Act of 1995. These forward-looking statements are based on currently available competitive, financial and economic data and management's views and assumptions regarding future events. Such forward-looking statements are inherently uncertain. Wireless Age Communications, Inc. cannot provide assurances that the matters described in this press release will be successfully completed or that the company will realize the anticipated benefits of any transaction. Actual results may differ materially from those projected as a result of certain risks and uncertainties, including but not limited to: global economic and market conditions; the war on terrorism and the potential for war or other hostilities in other parts of the world; the availability of financing and lines of credit; successful integration of acquired or merged businesses; changes in interest rates; management's ability to forecast revenues and control expenses, especially on a quarterly basis; unexpected decline in revenues without a corresponding and timely slowdown in expense growth; the company's ability to retain key management and employees; intense competition and the company's ability to meet demand at competitive prices and to continue to introduce new products and new versions of existing products that keep pace with technological developments, satisfy increasingly sophisticated customer requirements and achieve market acceptance; relationships with significant suppliers and customers; as well as other risks and uncertainties, including but not limited to those detailed from time to time in Wireless Age Communications, Inc. SEC filings. Wireless Age Communications, Inc. undertakes no obligation to update information contained in this release. For further information regarding risks and uncertainties associated with Wireless Age Communications, Inc.'s business, please refer to the risks and uncertainties detailed from time to time in Wireless Age Communications, Inc.'s SEC filings.

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