Wireless Matrix Achieves Net Income for the Fiscal Year 2009

Business Wire, July 29, 2009

HERNDON, Va. -- Wireless Matrix Corporation (TSX: WRX), the leading provider of service chain performance management solutions targeting field service organizations is pleased to provide the results for its three and twelve months ended April 30, 2009.

All currency expressed in U.S. dollars.

Wireless Matrix Corporation (“Wireless Matrix” or “Corporation”) has in a short period of time achieved a leadership position in providing service chain performance management software through its innovative approach to helping customers manage mobile workforces. With over 25,400 application subscribers and a total of 69,681 network and application subscribers at the end of fiscal year 2009, Wireless Matrix’s FleetOutlook® solution has been recognized by Tier 1 clients as integral to their efforts to combat higher operating costs and increase their competitive standards as the economy becomes more consumer-driven.

By offering best of breed technologies that are fully integrated to create an end-to-end solution, Wireless Matrix’s customers are able to manage their mobile workers and vehicles in real-time, providing the ability to properly align resources and enhance their customer’s experience. These proven results have attracted key enterprise customers in both new and existing vertical markets resulting in a 10% increase in year over year revenues and a 9% increase in subscribers and a growing backlog. This growth in subscribers fueled record adjusted EBITDA (earnings before taxes, depreciation and amortization) in fiscal 2009 of $4,501,000 and net income of $1,490,000.

“In response to intense market pressures, companies are recognizing the need to proactively improve service levels while simultaneously reducing costs,” said J. Richard Carlson, president and chief executive officer of Wireless Matrix. “Our FleetOutlook solution drives proven returns for our customers within a few months, providing them the potential to achieve their operational and financial goals. The tangible results we are delivering are leading directly to a healthy sales pipeline, a large backlog and consistent sales wins as we enter the new fiscal year.”

Subsequent to year end, Wireless Matrix announced two seminal sales wins in the pay television space, and a new agreement extending a long-standing customer for 5 years with an over $20,000,000 agreement. These agreements demonstrate tangibly the Corporation’s ability to attract and grow large clients and represent over 15,000 new subscribers driving Wireless Matrix’s subscriber base to over 88,000 subscribers once fully deployed.

“These three agreements have promise to propel our growth forward as we continue the transformation from a valued satellite communications provider to the industry’s leading software-as-a-service provider to enterprises with service fleets. The agreement with our long standing client was particularly gratifying due to the competitive intensity which brought out the best in the Wireless Matrix team and exhibits the strength of our offering by transitioning a large multi-mode customer to our next generation applications, devices, and 3G and 4G wireless services. We are very proud of these achievements,” added Carlson.

Wireless Matrix has put its 17 years of domain experience to work by developing service chain performance management solutions from our customers’ point of view. Instead of focusing solely on where vehicles are located, Wireless Matrix provides service chain management performance on a software-as-a-service basis that provides business optimization, fleet efficiency and customer relationship enhancement by improving operational visibility and execution. This value-add offering has positioned Wireless Matrix for ongoing growth.

“Wireless Matrix has met its strategic goal by delivering net income of $1,490,000 and generating cash flow from operations of $4,996,000 for the year and positioning ourselves well for fiscal year 2010,” stated Maria C. Izurieta, chief financial officer of Wireless Matrix. “Given the global economic downturn, we are pleased our philosophy of building a business based upon solid fundamentals has earned shareholders earnings per share of $0.02.”

Other financial highlights include:

• Achieved total revenue growth of 10% over fiscal 2008 to $39,179,000, the highest in the Corporation’s history.
• Generated recurring subscriber service revenue of $27,546,000, with growth over last year of 13%. Of which, application revenues accounted for 26% of service revenues, and increased over fiscal year 2008 by 11%.
• Added 5,763 net subscribers during the fiscal year and ended the year with 69,681 recurring revenue subscribers, an annual growth of 9%, against an industry average growth rate of 8%.
• Increased service gross margin to 77.7% for the fourth quarter and 74.6% for the fiscal year 2009.
• Increased total gross margin to 58.9% for the fourth quarter and 57.5% for the fiscal year 2009, ending the year with total gross margin of $22,530,000.
• Achieved adjusted EBITDA of $4,501,000 for fiscal 2009, an increase over the prior fiscal year.
• Generated net income for the fourth quarter 2009 and fiscal 2009 of $298,000 and $1,490,000, respectively.
• Drove cash flows from operations of $4,996,000, an improvement of over $2,038,000 when compared with last fiscal year.