Wireless Matrix Corporation
TSX : WRX

Wireless Matrix Corporation

September 14, 2005 09:00 ET

Wireless Matrix Reports Record First Quarter Fiscal 2006 Results Achieves Positive Operating Results

RESTON, VIRGINIA--(CCNMatthews - Sept. 14, 2005) - Wireless Matrix Corporation (TSX:WRX), the leader in wireless data communication solutions is pleased to provide the results for the first quarter ended July 31, 2005.

All currency expressed in U.S. dollars.

Wireless Matrix achieved income before other charges of $178,000 for the first quarter of 2006. Income before other charges is calculated as gross margin less operating expenses, which includes general, administrative, research, and product and market development expenses.

Wireless Matrix achieved total revenues of $6,410,000 for the first quarter 2006, a 6.6% overall growth from the prior quarter ended April 30, 2005. Service revenues were $3,802,000 for the first quarter 2006 an increase of 14.5% over the prior quarter due both to the increase in subscribers to 27,383 and a higher mobile monthly average revenue per unit (ARPU) of $49.17 in the first quarter driven primarily from higher usage from existing subscribers.

Hardware revenues were $2,608,000 in the first quarter, which were impacted positively by 1,000 units being shipped in the first quarter 2006 as well as the 2,186 units shipped in the previous quarter. Wireless Matrix also had an additional 971 units in backlog as of July 31, 2005.

Wireless Matrix in the first quarter, has also begun the launch of its comprehensive suite of solutions that will provide, for the first time, an end-to-end solution that includes automated business processes software, satellite and terrestrial wireless data communications networks, and reliable hardware devices. These wireless workforce automation solutions are designed to improve remote workers productivity by leveraging the Corporation's core competencies in wireless data expertise, network management, integration, and Enterprise level care.

"We are extremely pleased with our first quarter results. We achieved a significant milestone this quarter of generating positive income before other charges and we had our second consecutive quarter of positive net subscriber adds. Most importantly, our sales pipeline continues to gain strength which bodes well for the future." said J. Richard Carlson, Wireless Matrix's Chief Executive Officer and President. "This is the result of the first phase of our strategy to build a solid foundation for financial growth which was completed last quarter. We are now poised to launch our second strategic phase of becoming the only provider capable of offering customers a full menu of end-to-end wireless solutions including satellite and terrestrial MVNO (mobile virtual network operator) solutions, integrated with mobile workforce resource management applications."



Financial Highlights:

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For the quarters ended July 31,
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2005 2004
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Sales $ 6,410 $ 6,309
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Gross Margins 2,790 2,574
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Income (loss) before other charges 178 (18)
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Income (loss) from continuing operations (128) (297)
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Income from discontinued operations --- 129
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Net loss (128) (168)
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Basic and diluted loss per share:
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Loss from continuing operations $(.0019) $(.0044)
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Net loss $(.0019) $(.0025)
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Cash balance $13,219 $ 9,510
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Total subscribers 27,383 25,785
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Mobile ARPU $ 49.17 $ 48.46
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Total units shipped 1,000 1,141
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Forward Looking Statements:

General information regarding the Corporation set forth in this document, including management's assessment of the Corporation's future plans and operations contains forward looking statements that involve substantial known and unknown risks and uncertainties. These forward looking statements are subject to numerous risks and uncertainties, some of which are beyond the Corporation's and management's control, including but not limited to, the impact of general economic conditions, industry conditions, fluctuation of commodity prices, fluctuation of foreign exchange rates, imperfection of reserve estimates, environmental risks, industry competition, availability of qualified personnel and management, stock market volatility, timely and cost effective access to sufficient capital from internal and external sources. The Corporation's actual results, performance or achievement could differ materially from those expressed in or implied by, these forward looking statements and accordingly, no assurance can be given that any of the events anticipated to occur or transpire from the forward looking statements will provide what, if any benefits to the Corporation. All data presented herein should be read in conjunction with the Corporation's regulatory filings, with the appropriate Securities Commission and SEDAR. These filings, including the Corporation's Annual Information Form ("AIF''), are located at www.sedar.com.

About Wireless Matrix:

Wireless Matrix is a leading developer and provider of enterprise-class wireless data services for business-critical operations involving mobile workforces and remote assets. Wireless Matrix mobile services are deployed in major corporate industrial markets including oil and gas, utilities, transportation and field service. The Company delivers a data network service that provides 100% real-time wireless communications coverage to all of North America. This service is enabled by the Mobile Base Station hardware platform that provides data connectivity via cellular, satellite, and WiFi networks to enterprise back-office systems enabling field work force mobility. Wireless Matrix is headquartered in Reston, Virginia, with offices in Burnaby, British Columbia.

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

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