WebTech Wireless Announces Agreement With Crown Telecom to Accept Partial Payment in Exchange for an Extended Cure Period

WebTech Wireless Announces Agreement With Crown Telecom to Accept Partial Payment in Exchange for an Extended Cure Period

WebTech Wireless Inc. (TSX: WEW), a leading fleet Telematics products and service provider, has received from Crown Telecom (”Crown”), a provider of location-based and fleet Telematics services and WebTech Wireless’ exclusive distributor in Brazil, a letter in which Crown acknowledges breach of Crown’s Loan and Distributor Agreements with WebTech Wireless and which requests a cure period extending until May 26th in exchange for partial payment of the amounts owing by Crown under the Agreements.

In the letter Crown has stated their intent to make a payment to WebTech Wireless sufficient to pay off the interest owing under the Loan Agreement and to partially pay down the accounts receivable owed to WebTech Wireless by Crown by May 26, 2007.

Crown has also informed WebTech Wireless that it is in discussions with several financial institutions in Brazil, both local and international, aimed at securing investment funds to provide the working capital Crown requires to fund its “24 Horas” operation in Brazil. In addition, Crown has provided documentation confirming that they are actively engaged with a major vehicle OEM in Brazil. To that effect, Anwar Sukkarie, CEO and co-founder, WebTech Wireless, has made arrangements to visit Brazil this week to meet and continue the direct contact between WebTech Wireless and the vehicle OEM.

“Crown Telecom has expanded dramatically in the past few months to accommodate our rapidly growing customer base,” commented Jose Antonio S. Pereira Jr., President and CEO, Crown Telecom. “We have had several financing options and offers, including a financial offer presented by WebTech Wireless on May 13th, 2007. Crown is diligently working with WebTech Wireless to resolve the default issues and I am certain that Crown will meet all its financial challenges.”

“The options described by Crown would certainly improve its working capital challenges and would allow us to continue recognizing the revenue from Crown and hopefully allow us to start shipping to them again before their on-hand inventory runs out,” said Anwar Sukkarie. “However, it is important that Crown fulfill the commitments they have made in exchange for our agreement to extend the cure period. In addition, my direct meetings with the vehicle OEM in Brazil are aimed at reaching an agreement to allow the ‘24 Horas’ program to continue while minimizing the risk to WebTech Wireless from our Brazilian operations.”

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 Maintenance, 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 governments. For more information, please visit www.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.