Update on Brazilian Operations
Vancouver - May 11th, 2007 – WebTech Wireless Inc. (TSX:WEW). The Company has today informed Crown Telecom, its distributor in Brazil, that the Company is demanding payment of amounts owing under its Distributor and Loan Agreements with the Company and that the Company intends to commence a variety of actions designed to protect its interests. These actions follow the expiry on Friday, May 11th, of certain financing proposals offered to Crown intended to provide Crown with working capital to allow Crown to continue to operate as a distributor for the Company. Among the proposals offered to Crown were two offers of financing which the Company assisted in procuring, and an offer to purchase Crown made by the Company.
Although the Company is suspending further shipments, WebTech Wireless will not discontinue the service offered to many thousands of vehicles already activated on the system and on ‘24 Horas’ in Brazil.
The amounts owed to the Company by Crown are significant. If the Company is not able to collect the amounts owed, this will have a material impact on the Company’s YTD and quarterly financial statements for the period ended April 30, 2007, as well as its financial forecast for the balance of 2007. The Company does however have significant other business opportunities available to it as well as a strong balance sheet including significant cash reserves.
“It is unfortunate that we have been forced to take these actions against Crown, given the alternatives which we assisted Crown in procuring and in light of the fact that the Crown ‘24 Horas’ program is proving to be a success with each of the parties involved – the consumer, insurers and the automobile manufacturer - with over 60,000 of our units installed or at the assembly lines.” said Anwar Sukkarie, CEO and co-founder of WebTech Wireless. “The installed units are functioning and returning location data to our servers in Vancouver. We are therefore hopeful that Crown will soon solve its problems so that we can recommence fulfilling the proven demand for our products in Brazil and continue providing Crown with the location data it needs to operate ‘24 Horas’. In the meantime we continue discussions with other automobile OEMs and in other countries about offering similar hardware and monitoring services to these OEMs that are included in the ‘24 Horas’ program in Brazil.”
A conference call will be held today at 4:30pm Eastern time to discuss this and other corporate matters. Interested parties may participate in the call by dialing 1-888-391-0237 or 212-676 5396 (for international callers).
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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 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. For more information, please visit www.webtechwireless.com.
For further information on WebTech Wireless, please contact:
Press / Media Contact:
Corey Grant / WebTech Wireless
(+1) 604-628-5194 cgrant@webtechwireless.com
Investor Relations Contact:
R. Joe Dhami / Pacific Orca Capital
(+1) 877-811-4518 ext. 236, jdhami@shawcable.com
The Toronto Stock Exchange does not accept responsibility for the
adequacy or accuracy of this release.


