WebTech Wireless Inc.

TSX: WEW

VANCOUVER, BRITISH COLUMBIA--(Marketwire - Nov. 12, 2009) - WebTech Wireless Inc. (TSX:WEW), a leading supplier of vehicle location-based and fleet telematics services, today reported revenue of US $4.5 million for the three month fiscal quarter ended September 30, 2009, and US$16.1 million for the nine months then ended. Delays in customers' projects and the negative impact of a weakening US dollar resulted in a 37% decrease in revenue over the prior year's comparable quarter and 10% on a comparable year to date (YTD) basis.

The Company is reporting a Net Loss of $2.0 million (3 cents per share) for the quarter and a Net Loss of $2.1 million for the nine months YTD (4 cents per share).

The Company is reporting Total Comprehensive Income of $356,000 for the nine months ended September 30, 2009 after accounting for a foreign exchange gain of $2.4 million resulting from its adoption of the US dollar as its reporting currency. Comprehensive Income is a GAAP measure which is not considered when reporting Earnings per Share.

WebTech Wireless is comparing its results for the quarter ended September 30, 2009 to its results for the quarter ended October 31, 2008 as it changed its fiscal year end from July 31 to December 31, and October 31, 2008 represents the nearest prior year reporting date to September 30. When the Company reports its results for the 12 months ended December 31, 2009, those results will be compared to the Company's results for the 12 months ended July 31, 2008, its last full fiscal year before its change in year end.

Revenues at $4.5 million were reflected in our traditional sales in the Government and Transportation verticals. Seasonal slowdown and delays in negotiating contracts with large customers in the US and Mexico contributed to our decline in revenue for this Quarter.

Profit margins at 59% for the quarter and YTD are above target and historical levels, due to continuing economies of scale, the effect of high margin recurring revenue being a higher than normal percentage of total sales, and a one-time contribution from a large, high margin enterprise license sale earlier in the year.

Expenses for the quarter of $3.8 million were approximately 14% below prior year, and YTD expense of $10.8 million are approximately 19% below prior year, despite increased spending on litigation and expenses indirectly related to the Company's recent acquisition of Grey Island Systems Inc.

Net loss for the three months was $2.0 million which includes several large one-time cash and non-cash charges such as a loss on the sale of its long term investment in MAV II notes, legal fees related to ongoing litigation, and a foreign exchange loss on operations related to continuing weakening of the US dollar. Combined these items account for approximately $1.5 million in expenses. For the nine months, the Company is reporting a net loss of $2.1 million.

As of September 30, 2009, the Company is reporting total assets of $21 million (December 31, 2008: $20.7 million) and working capital of $17.2 million (December 31, 2008: $13.9 million) primarily due to an increase in cash on hand.

"We are obviously disappointed to be reporting a slowdown in revenue growth - due primarily to delayed projects from major customers in the US and Mexico. We're pleased, however, that gross margins and our cost control measures continue to provide benefits," said Scott Edmonds, WebTech Wireless' CFO.

A reminder that the Financial Results Conference Call will be held today, November 12th, at 5:00 pm Eastern Time (2:00 pm Pacific Time). Interested parties may participate in the call by dialing 1-800-915-4217 or (212) 231-2900 (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 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 USD)
(Unaudited)


                                                 30-Sep-09   31-Dec-08
                                                 ---------------------


ASSETS


Current
 Cash and cash equivalents                        $  4,853    $  3,176
 Accounts receivable, net of allowance               6,282       6,344
 Inventory, net of allowance                         7,714       7,046
 Prepaid expenses and deposits                         601         369
                                                 ---------------------
                                                    19,450      16,935


Property and equipment (Note 7)                      1,335       1,326
Long term investments (Note 8)                           -       2,450
Deferred Charges                                       197           -
                                                 ---------------------


                                                  $ 20,982    $ 20,711
                                                 ---------------------
                                                 ---------------------


LIABILITIES


Current
 Bank indebtedness                                $      -    $    817
 Accounts payable and accrued liabilities            1,820       1,626
 Current portion of deferred revenue                   410         559
                                                 ---------------------
                                                     2,230       3,002


Long term
 Deferred lease inducement                             742         524
 Deferred revenue                                      230         224
                                                 ---------------------
                                                       972         748


                                                     3,202       3,750
                                                 ---------------------


SHAREHOLDERS' EQUITY


Share Capital (Note 9)                              57,010      56,819
Contributed Surplus (Note 10)                        3,947       3,675
Retained Deficit                                   (39,171)    (37,105)
Accumulated Other Comprehensive Income              (4,006)     (6,428)
                                                 ---------------------


Total Shareholders' Equity                          17,780      16,961
                                                 ---------------------
                                                  $ 20,982    $ 20,711
                                                 ---------------------
                                                 ---------------------


Commitments (Note 12)


APPROVED BY THE DIRECTORS:


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



WEBTECH WIRELESS INC.
CONSOLIDATED STATEMENT OF OPERATIONS
(Amounts in thousands of USD except Gross margin and per share amounts)
(Unaudited)


                               3 months ended           9 months ended
                          30-Sep-09    31-Oct-08    30-Sep-09    31-Oct-08
                        ------------------------  ------------------------


Revenue                 $     4,525  $     7,133  $    16,091  $    17,947


Cost of goods sold            1,855        3,646        6,556        9,288
                        ------------------------  ------------------------


Gross profit                  2,670        3,487        9,535        8,659
                        ------------------------  ------------------------


Gross margin                  59.00%       48.89%       59.26%       48.25%


Expenses
 Sales and marketing          1,447        2,123        4,806        6,109
 Research and
  development                 1,152        1,145        3,222        3,318
 General and
  administrative              1,037          997        2,372        3,508
 Amortization                   148          120          400          366
                        ------------------------  ------------------------


                              3,784        4,385       10,800       13,301


                        ------------------------  ------------------------
Loss before other items      (1,114)        (898)      (1,265)      (4,642)


Other items
 Interest and
  other income                   13           25           78          157
 Foreign exchange
  gain/(loss) on
  operations                   (649)         937         (782)       1,050
 Loss in the fair
  value of long term
  investments (Note 8)            -            -            -         (827)
 Gain on
  restructuring of
  long term
  investments (Note 8)            -            -          166            -
 Loss on sale of long
  term investments
  (Note 8)                     (263)           -         (263)           -
                        ------------------------  ------------------------
Net profit/(loss)       $    (2,013) $        64  $    (2,066) $    (4,262)
                        ------------------------  ------------------------


Other comprehensive
 profit/(loss):
 Foreign exchange
  gain/(loss) due to
  translation into USD
  reporting currency          1,490       (3,702)       2,422       (4,941)


                        ------------------------  ------------------------
Total comprehensive
 profit/(loss) for
 the period             $      (523) $    (3,638) $       356  $    (9,203)
                        ------------------------  ------------------------


Basic and fully
 diluted earnings
 gain/(loss) per share  $     (0.03) $         -  $     (0.04) $     (0.07)
Weighted average
 shares outstanding
 during the year         58,193,788   57,885,269   58,125,539   57,856,820



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


                               3 months ended           9 months ended
                          30-Sep-09    31-Oct-08    30-Sep-09    31-Oct-08
                        ------------------------  ------------------------


Operating Activities
 Net gain/(loss) for
  the period            $    (2,013) $        64  $    (2,066) $    (4,262)
 Add items not
  affecting cash:
  Amortization                  148          120          397          366
  Stock based
   compensation                  83          325          408          855
  Amortization of
   leasehold inducement         (26)         (14)         (77)         (55)
  FX adjustment on
   accounts receivable          259         (918)         194         (976)
  FX adjustment on
   accounts payable             (17)           3           (4)         118
  Loss in the fair
   value of long term
   investments                    -            -            -          801
  Loss on sale of long
   term investments             263            -          247            -
                        ------------------------  ------------------------


                             (1,303)        (420)        (901)      (3,153)
Changes in non-cash
 working capital
 items related to
 operations:
 Accounts receivable            754       (3,212)         690       (2,941)
 Inventory                     (138)          36          306       (1,558)
 Prepaid expense and
  deposits                       74          367         (164)         131
 Accounts payable and
  accrued liabilities          (197)         941          (29)        (138)
 Deferred Revenue              (206)          77         (232)          85
 Deferred lease
  inducement                      -           45          209          503
                        ------------------------  ------------------------


                             (1,016)      (2,166)        (121)      (7,071)
                        ------------------------  ------------------------


Financing Activities
 Common shares
  issued, net of costs            38          32           65          111
 Share repurchased                 -           -            -         (647)
 Repayment of bank
  line of credit                   -           -         (855)           -
 Repayment of borrowing
  against long term
  investments                 (1,558)          -       (1,462)           -
 Borrowing - against
  long term investments            -           -        1,462            -
                        ------------------------  ------------------------


                              (1,520)         32         (790)        (536)
                        ------------------------  ------------------------
Investing Activities
 Purchase of
  capital assets                 (75)        (55)        (232)        (411)
 Increase in long
  term investment                  -           -            -            -
 Proceeds from sale
  of long term
  investments                  2,470           -        2,316            -
 Deferred Charges -
  GIS acquisition               (192)          -         (180)           -
                        ------------------------  ------------------------


                               2,203         (55)       1,904         (411)
                        ------------------------  ------------------------


Effect of changes in
 FX rates on cash and
 cash equivalents                396        (897)         684       (1,003)


Net increase
 (decrease) in cash
 during the period                63      (3,086)       1,677       (9,021)


Cash and cash
 equivalents,
 beginning of period           4,790       7,064        3,176       12,999
                        ------------------------  ------------------------


Cash and cash
 equivalents, end of
 period                 $      4,853  $    3,978  $     4,853   $    3,978
                        ------------------------  ------------------------
                        ------------------------  ------------------------


Cash and cash
 equivalents
 consist of:
 Cash                   $      4,853  $    3,978  $      4,853  $    3,978
                        ------------------------  ------------------------
                        ------------------------  ------------------------


Supplemental cash
 flow information
 Interest paid          $          2  $        1  $         17  $        2
 Income taxes paid                 -           -             -           -


Non-cash Transactions
 Transfer of property
  under development to
  property and
  equipment             $          -  $       78  $          - $         -

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