Wireless Matrix Reports Fiscal 2006 Results Achieves First Year of Net Income

Market Wire, July, 2006

Wireless Matrix Corporation (TSX: WRX), the leader in wireless data communication solutions is pleased to provide the results for its fiscal year ended April 30, 2006.

All currency expressed in U.S. dollars.

Wireless Matrix achieved during fiscal year 2006 a net income of $382,000 representing the first year of profitability in company history and a substantial improvement over last year's loss of $2,532,000 before a gain from discontinued operations and loss from goodwill impairment.

The Company also had several other notable achievements during the year including increasing units shipped to over 7,000 units, a 37% increase from the prior year's shipments of 5,141 units. These shipments were fueled by several landmark sales to leaders in the rail, tower and other vertical markets driving the Company's subscriber count to over 30,000 by year end. Subsequent to year end, the Company also announced a three-year renewal agreement with its largest customer, cementing an important revenue stream and providing that valued partner an attractive migration path to broadband wireless technologies.

Total revenues in fiscal 2006 of $24,916,000 were positively impacted by a 12% increase in service revenues to $15,668,000. This service revenue growth was driven by net subscriber additions of 3,613 and average revenue per unit ("ARPU") to $43.59 which includes an ARPU improvement of 8.2% for Mobile units to $48.52. As anticipated, hardware revenues decreased in 2006 to $9,248,000 related to the amortization of deferred revenue from high hardware sales three years ago. The decline in hardware revenues were partially offset by strong sales in 2006 with shipments of 7,070 units and an additional 1,208 units in backlog, for a total increase over the prior year shipments and backlog of 53% making 2006 the second best year of hardware sales in the Company's history.

"We have consistently delivered on improved financial metrics during 2006 which have culminated in an 18.6% increase in gross margins when compared to last year." said Maria C. Izurieta, Chief Financial Officer. "This has lead to the Company's first year of positive cash flows from operations of $2,134,000. Wireless Matrix's strong financial results were the direct result of a 13.3% growth in our subscriber base and decreased operational expenses driven by the turnaround efforts and growth initiatives undertaken by the Company over the past two years."

In addition to improving existing financial metrics, Wireless Matrix also began to successfully embark upon strategic growth initiatives designed to transform the Corporation into an end-to-end solutions provider. The Company launched its first application software product, automatic vehicle location (AVL) during the year, and obtained its first customers. This application is the first of many applications that Wireless Matrix plans to offer its clients as the Company fills out its mobile resource management solutions. The Company's vision is to offer a comprehensive suite of solutions that includes automated business process software, broadband wireless networks, and devices packaged to drive measurable productivity improvements of mobile workers.

Wireless Matrix took a significant step toward the realization of these vision with the acquisition of substantially all the assets of MobileAria for $11,005,000, announced on July 21, 2006. MobileAria provides the Company with an enterprise grade logistics application platform, a leading edge mobile internet device providing secure and unfettered access to web and desktop applications, and strategic relationships with both Verizon Communications and Verizon Wireless.

"We are very enthused with the significant milestones that we achieved during fiscal year 2006," said J. Richard Carlson, Wireless Matrix's Chief Executive Officer and President. "We entered fiscal year 2007 with a profitable base, growing subscriber counts, and a strong balance sheet with $14,925,000 in cash and no long-term debt. The acquisition of MobileAria, when combined with our existing product development efforts and assets, catapults Wireless Matrix into a leading position in the rapidly growing mobile resource management and dramatically increasing our addressable market. Wireless Matrix enters fiscal year 2007 with an exciting portfolio of broadband wireless data solutions for enterprise customers."

Financial Highlights:
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All currency in thousands      Three months ended,    Fiscal Year ended,
except per share data                    April 30,             April 30,
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                                    2006     2005         2006     2005
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Service revenue                  $ 3,895  $ 3,323      $15,668  $13,948
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Hardware revenue                   2,257    2,690        9,248   10,512
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Total revenue                      6,152    6,013       24,916   24,460
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Gross margins                      3,073    2,557       11,891   10,028
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Income (loss) before other
 charges                             367     (355)       1,247     (778)
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Income (loss) before
 discontinued operations             179  (33,365)         401  (35,085)
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Net income (loss)                    161  (30,857)         382  (32,620)
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Basic and diluted income (loss)
 per share:
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Net income (loss)                $ .0024  $(.4580)     $ .0057  $(.4842)
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Cash balance                     $14,925  $11,284      $14,925  $11,284
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Total subscribers                 30,813   27,200       30,813   27,200
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Average Revenue Per Unit (ARPU)  $ 40.76  $ 42.19      $ 43.59  $ 44.84
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Total units shipped                2,175    2,168        7,070    5,141
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