For the year ended June 30, 2001, Cell-Loc reported a net loss of $40,430,000 ($1.70 per share) as compared to $8,915,000 ($0.49 per share) for the previous year. Included in the $40 million loss is $18 million of one-time restructuring costs. The loss is consistent with management's strategic plan to deploy commercial Cellocate™ wireless location networks and to continue related research and development projects. The operating loss for the current fiscal year is therefore attributable to significant investments in network equipment and deployment, product development and marketing initiatives related to building out Cellocate™ networks and identifying business development opportunities.

At June 30, 2001, Cell-Loc had working capital of $299,000 and cash and short-term investments totaling $3,461,000.

The June 30, 2001 financial statements will be immediately filed on SEDAR and concurrently mailed to shareholders along with the Company's annual and special meeting documents, which are expected to be mailed on or about November 01, 2001. Further, any Cell-Loc shareholder entitled to receive the 2001 financial statements may obtain a copy of them in advance upon request to Cell-Loc.

"Fiscal 2001 was a year of tremendous accomplishments and challenges for Cell-Loc," said Dr. Michel Fattouche, president & CEO, Cell-Loc Inc. "Our wireless location technology received validation from outside parties and we responded to unfavorable stock market conditions by focusing our unique technology on existing markets with high demand such as asset tracking and de-emphasizing our connection with the emerging wireless location market."

Fiscal 2001 Highlights

• Raised over $25 million in gross proceeds to finance company activities.
• Co-founded the Wireless Location Industry Association (WLIA) based in Washington, DC.
• Launched Calgary and Austin Cellocate™ wireless location networks.
• Introduced Cellocate Beacon™ I, a wireless device that enables location-based applications such as fleet and asset tracking which was successfully in Calgary and Austin.
• Signed memorandums of understanding for the licensing of Cell-Loc's intellectual property and related networks.
• Received revenue from an executed licensing agreement and a Canadian federal government traffic study contract.
• Implemented corporate restructuring program to reduce operational costs and to align corporate resources toward revenue generation from existing markets such as fleet and asset tracking.

Subsequent to Year End
Please see Annual Report filed on SEDAR.

About Cell-Loc Inc.
Cell-Loc Inc. (www.cell-loc.com), a leader in the emerging wireless location industry, is the developer of Cellocate^TM, a family of wireless location products that enable location-based services. Located in Calgary, Alberta, Cell-Loc currently develops, markets and supports its patented wireless location technology in North and South American countries with a view to expanding globally. Cell-Loc is listed on the Toronto Stock Exchange under the trading symbol: "CLQ."

Note to Editors: Cell-Loc, Cellocate, Cellocate System, Cellocate Beacon, TimesThree and LocationBroker are trademarks of Cell-Loc Inc.

The Toronto Stock Exchange has neither approved nor disapproved the information contained herein.

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