October 30, 2006 - WebTech Wireless Reports profit of $1.1 million, or $0.03 per common share, on $16.3 million revenue

Burnaby, BC – October 30, 2006 –WebTech Wireless Inc. (TSX-V:WEW), a leading supplier of mobile telematics, today reported record revenue of $16.3 million for the year ended July 31, 2006, representing an increase of 58% over prior year revenue of $10.3 million.  Net income for the year was $1.1 million ($0.03 per common share) compared with $.4 million ($0.01 per common share) for the prior year. The Company reported a gross profit margin of 50.5% compared with 49.6% for the prior year.   

The Company realized an increase in international revenue due to growth in worldwide demand for location based services.  Revenue from sales to North America increased by 26.9% over the prior year as sales to government fleets and small to medium commercial fleets increased.  Also during the year, the Company launched a new suite of products targeted at the long haul trucking sector, contributing to the increase in North American sales.  In January, 2006 the Company made a landmark sale to Crown Telecom of Brazil for installation of its locators in certain new models of Volkswagen for the Brazil market, driving a 390.8% increase in sales to that region during the year.

WebTech Wireless reported that expenses increased by 55.0% from $4.6 million for fiscal 2005 to $7.2 million for fiscal 2006, primarily due to an increase in staffing across all departments from 64 members at the beginning of the year to 98 members at July 31, 2006.  The Company increased its research and development activities, expanded its sales and marketing team and built its administrative and operational staff to prepare for future growth.

For the quarter ended July 31, 2006, WebTech reported revenues of $5.0 million representing 52.7% growth over revenues of the prior comparable quarter of $3.3 million. Net income of $.609 million ($0.02 per common share) almost doubled compared with net income of $.235 million ($0.01 per common share) in the prior comparable quarter. The Company earned a gross profit margin of 51.4% compared with a gross profit margin of 50.7% for the same quarter of the prior year.

At year end, the Company reported total assets of $22.3 million (2005: $6.9 million) and working capital of $18.8 million (2005: $5 million).   During the year the Company generated $1.6 million (2005: $0.91 million) from operating activities, calculated as net income after adding back amortization and stock based compensation. The Company generated $13 million (2005: $1.1 million) from the issue of common shares, of which $9.3 (net of issue costs) was pursuant to a private placement in April, 2006.

“2006 was an important year for WebTech, as we took steps to position the Company to service significantly larger fleets”, comments Juliet Jones, Chief Financial Officer of WebTech Wireless Inc. “We expanded into the consumer automotive market with the provision of Locators to Volkswagen in Brazil and we expanded into the long-haul trucking and transportation market with our introduction of a new targeted product offering.  We entered into relationships with Motorola and IBM for worldwide distribution of our products and services.  During the year we increased our working capital and built our infrastructure to enable our next phase of growth.”

The Company announces that it will hold a conference call on October 30, 2006 at 5:00 PM Eastern Time and that a recording of the conference call will be posted on the Company’s website at www.webtechwireless.com within 24 hours of the call.  Interested parties may participate in the call by dialing 1-877-331-7860 or 416-620-2418 (international callers).  The financial statements and management’s discussion and analysis will be posted on the Company’s website prior to the conference call.  Further information on the Company may also be viewed at www.sedar.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 cannot guarantee that any forward looking statements will not be realized.

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For further information on WebTech Wireless, please contact:

Press / Media Contact:
Daniela Balenovic
604.628.1187
dbalenovic@webtechwireless.com

Investor Relations Contact:
R. Joe Dhami / Pacific Orca Capital
(+1) 877-811-4518 ext. 236, jdhami@shawcable.com
                                   
The TSX Venture Exchange does not accept responsibility for the adequacy or accuracy of this release.

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