WebTech Wireless Inc.

TSX: WEW

VANCOUVER, BRITISH COLUMBIA--(Marketwire - Aug. 13, 2009) - WebTech Wireless Inc. (TSX:WEW), a leading supplier of location-based and fleet Telematics services, today reported revenue of $7.2 million for the three month fiscal quarter ended June 30, 2009, and $13.9 million for the six months then ended. These revenue figures represent increases of 50% and 28% over the prior comparable figures respectively. The Company broke even for the three and six months, and has generated cash of $1,679 since its last year end.

WebTech Wireless is comparing its results for the quarter ended June 30, 2009, to its results for the quarter ended July 31, 2008 as it has changed its fiscal year end from July 31 to December 31, and July 31, 2008 represents the nearest prior year reporting date to June 30.

Highlights for the quarter include:

- Revenue of $7.2 million

- Break even on net income

- Increase in cash balances of $1.7 million since December 31, 2008 including $1.1 million generated from operations

- Gross profit margins of 62% reflecting the recognition of a very high margin software license

Revenues at $7.2 million were driven by US sales and the recognition of a one-time software license sale, which was accepted by the client in the quarter.

Profit margins at 62% were above target and historical levels due to continuing economies of scale as well as a one time contribution from the license sale.

Net loss for the three months was $169,000 ($nil per common share) and was caused primarily by a foreign exchange loss of $341,000 - largely contributed by a strong Canadian dollar in the month of May and one time legal fees related to the Company's successful appeal of a judgment against it in Brazil. Year to date the Company has lost $54,000 - due again to a foreign exchange loss, and the aforementioned one time legal charges.

Expenses for the quarter of $4.3 million were approximately 8% below prior year, and year to date expenses of $8.4 million are approximately 6% below prior year, including a one time non cash stock based compensation charge of $260,000.

As of June 30, 2009, the Company reported total assets of $27 million (December 31, 2008: $25.4 million) and working capital of $19.4 million (December 31, 2008: $17 million). The increase in working capital was the result of cash generated from operations and funds drawn against the credit facility secured by the MAVII notes.

"This was a milestone quarter for WebTech as we delivered on and recognized our first enterprise license and this is reflected in our revenue and gross margin figures," said Scott Edmonds, Chief Financial Officer, WebTech Wireless Inc. "Our strategy of operating in multiple verticals and multiple territories has protected us from the vagaries of the current recession and our large customer strategy has contributed significantly to this years growth."

A reminder that the Financial Results Conference Call will he held today, August 13th, at 5:00 pm Eastern Time (2:00 pm Pacific Time). Interested parties may participate in the call by dialing 1-800-941-1366 or (212) 231-2904 (for international callers). The conference call will be archived on the Company's website at: www.webtechwireless.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.

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 Wireless cannot guarantee that any forward looking statements will be realized.

Trademarks are the property of their owners.

WEBTECH WIRELESS INC.
CONSOLIDATED BALANCE SHEET
(Amounts in thousands of Canadian dollars)



                                                   30-Jun-09      31-Dec-08
                                                 -----------    -----------
                                                  (Unaudited)      (audited)


                                      ASSETS


Current
  Cash and cash equivalents                      $     5,568    $     3,889
  Accounts receivable, net of
   allowance                                           7,847          7,769
  Inventory, net of allowance                          8,120          8,629
  Prepaid expenses and deposits                          725            452
                                                 -----------    -----------
                                                      22,260         20,739
Property and equipment (Note 5)                        1,511          1,624
Long term investments (Note 6)                         3,000          3,000
                                                 -----------    -----------


                                                 $    26,771    $    25,363
                                                 -----------    -----------
                                                 -----------    -----------


                                   LIABILITIES


Current
  Bank indebtedness (Note 7)                     $         -    $     1,000
  Accounts payable and accrued
   liabilities                                         2,186          1,991
  Current portion of deferred revenue                    655            685
                                                 -----------    -----------
                                                       2,841          3,676
Long term
  Deferred lease inducement                              824            642
  Deferred revenue                                       258            274
  Long term debt secured by long term
   investment (Note 8)                                 1,710              -
                                                 -----------    -----------
                                                       2,792            916


                                                       5,633          4,592
                                                 -----------    -----------


                              SHAREHOLDERS' EQUITY


Share Capital (Note 9)                                59,879         59,689
Contributed Surplus (Note 10)                          4,362          4,131
Retained Earnings                                    (43,103)       (43,049)
                                                 -----------    -----------


                                                      21,139         20,771
                                                 -----------    -----------
                                                 $    26,771    $    25,363
                                                 -----------    -----------
                                                 -----------    -----------


Commitments (Note 12)
Subsequent Event (Note 14)


APPROVED BY THE DIRECTORS:


"Signed"                                    "Signed"
------------------                          ---------------------
Anwar Sukkarie                              Peter W. Roberts



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





WEBTECH WIRELESS INC.
CONSOLIDATED STATEMENT OF OPERATIONS, COMPREHENSIVE LOSS AND DEFICIT
(Amounts in thousands of Canadian dollars except Gross margin and per
 share amounts)
(Unaudited)


                           Three months ended           Six months ended
                        30-Jun-09     31-Jul-08     30-Jun-09     31-Jul-08
                     ------------  ------------  --------------------------
Revenue              $      7,249  $      4,834  $     13,918  $     10,890


Cost of goods sold          2,733         2,742         5,671         5,683
                     ------------  ------------  --------------------------


Gross profit                4,516         2,092         8,247         5,207
                     ------------  ------------  --------------------------


Gross margin                62.30%        43.28%        59.25%        47.81%


Expenses
  Sales and marketing       2,109         1,910         4,044         4,016
  Research and
   development              1,227         1,124         2,495         2,189
  General and
   administrative             848         1,537         1,606         2,530
  Amortization                156           137           303           248
                     ------------  ------------  --------------------------


                            4,340         4,708         8,448         8,984


                     ------------  ------------  --------------------------
Gain/(loss) before
 other items                  176        (2,616)         (201)       (3,777)


Other items
  Interest and other
   (expenses)/income           (5)           47            81           134
  Foreign exchange
   (loss)/gain               (341)          159          (143)          114
  Loss in the fair
   value of long term
   investments
   (Note 6)                     -             -             -          (831)
  Gain on
   restructuring of
   long term
   investments
   (Note 6)                     -             -           207             -
                     ------------  ------------  --------------------------
Net loss and
 comprehensive loss
 for the period      $       (169) $     (2,410) $        (54) $     (4,360)
                     ------------  ------------  --------------------------


Deficit, beginning
 of period                (42,934)      (35,050)      (43,049)      (32,654)
Loss for the period          (169)       (2,410)          (54)       (4,360)
Shares repurchased -
 excess of purchase
 price over carrying
 value                          -             -             -          (446)


                     ------------  ------------  --------------------------
Deficit, end of
 period              $    (43,103) $    (37,460) $    (43,103) $    (37,460)
                     ------------  ------------  --------------------------
                     ------------  ------------  --------------------------


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


Basic and fully
 diluted loss per
 share               $      (0.00) $      (0.04) $      (0.00) $      (0.08)
Weighted average
 number of shares
 outstanding during
 the period            58,178,161    57,746,204    58,080,133    57,842,843



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





WEBTECH WIRELESS INC.
CONSOLIDATED STATEMENT OF CASH FLOWS
(Amounts in thousands of Canadian dollars)
(Unaudited)


                          Three months ended            Six months ended
                       30-Jun-09      31-Jul-08     30-Jun-09     31-Jul-08
                     --------------------------  --------------------------
Operating Activities
 Net loss for the
  period             $      (169)  $     (2,410) $        (54) $     (4,360)
 Add items not
  affecting cash:
   Amortization              156            137           303           248
   Stock based
    compensation              90             93           386           530
   Amortization of
    leasehold
    inducement               (28)           (25)          (62)          (42)
   Loss in the fair
    value of
    long term
    investments                -              -             -           831
                     --------------------------  --------------------------


                              49         (2,205)          573        (2,793)
Changes in non-cash
 working capital
 items related to
 operations:
 Accounts receivable      (1,005)         1,241           (78)          474
 Inventory                   201         (1,534)          509        (1,657)
 Prepaid expense and
  deposits                  (205)          (149)         (273)         (267)
 Accounts payable and
  accrued liabilities        (50)         1,506           195        (1,057)
 Deferred Revenue           (349)           (57)          (46)            3
 Deferred lease
  inducement                   -              3           244           473
                     --------------------------  --------------------------


                          (1,359)        (1,195)        1,124        (4,824)
                     --------------------------  --------------------------
Financing Activities
 Common shares
  issued, net of costs         4             53            35            80
 Shares repurchased            -              -             -          (671)
 Repayment of bank
  loan                    (1,000)             -        (1,000)            -
 Borrowing - against
  long term
  investments                290              -         1,710             -
                     --------------------------  --------------------------


                            (706)            53           745          (591)
                     --------------------------  --------------------------\


Investing Activities
 Purchase of property
  and equipment              (48)          (184)         (190)         (367)
                     --------------------------  --------------------------


                             (48)          (184)         (190)         (367)
                     --------------------------  --------------------------


Net (decrease)
 increase in cash
 during the period        (2,113)        (1,327)        1,679        (5,782)


Cash and cash
 equivalents,
 beginning of period       7,681          8,573         3,889        13,028
                     --------------------------  --------------------------


Cash and cash
 equivalants, end 
 of period           $     5,568   $      7,246  $      5,568  $      7,246
                     --------------------------  --------------------------
                     --------------------------  --------------------------


Cash and cash
 equivalants 
 consist of:
Cash                 $     5,568   $      7,246  $      5,568  $      7,246
                     --------------------------  --------------------------
                     --------------------------  --------------------------


Supplemental cash
 flow information
  Interest paid      $         8   $          2  $         18  $          2
  Income taxes paid            -              -             -             -



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

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