"We are very pleased to be able to bring our wireless location technology into the world's largest market through a joint venture with two leading Chinese companies," said Dr. Michel Fattouche, president & CEO, Cell-Loc Inc. "China's remarkable growth in wireless telecommunications, China's rapid emergence as a modern economy, and China's population of 1.3 billion people creates the conditions for heavy demand for location-based services. China recently surpassed the United States as the world's largest wireless telephone market, reaching 135 million subscribers this year. The parties expect that offering our Cellocate technology in CDMA format, with the support of the Ministry of Information Industry, will enhance its value to China Unicom which has been undergoing a large scale deployment of CDMA throughout China."

Subject to approval of the Ministry of Foreign Trade and Economic Cooperation, or its locally authorized commissions, the joint venture will create and own a new corporation, Cell-Loc (Chongqing) Wireless Location Inc. ("Cell-Loc Chongqing"). Cell-Loc Chongqing will hold the license from Cell-Loc for exclusive use in China, including Hong Kong and Macau, of Cell-Loc's CDMA signal location technology. The new corporation plans to demonstrate the CDMA technology in the first quarter of 2002, and create and operate a manufacturing facility located in the Chongqing City High Technology Zone, Chongqing Directly Administered Municipality, the People's Republic of China, to produce Cellocate™ equipment to be used throughout the Chinese wireless market.

JiHong Zhang, president of A-INFO, which will provide software, management and marketing services, has been named president to the new joint venture corporation. A-INFO will own 12 percent of Cell-Loc Chongqing and nominate one director. Jinmei will provide necessary investment capital, manufacturing facilities and manufacturing personnel. Jinmei will own 53 percent of Cell-Loc Chongqing and will nominate four directors. In addition to providing the rights to the technology, Cell-Loc will station employees permanently in China to work for the joint venture. Cell-Loc will own 35 percent of Cell-Loc Chongqing and nominate three directors. Actions of the board of directors will require a two-thirds vote.

Chongqing Jinmei Communications Co., Ltd. is a major Chinese manufacturer of telecommunications equipment. Jinmei is 55 percent owned by Fujian Fufa Co., Ltd., a company with total assets in excess of one billion Chinese yuan. Fujian Fufa is in turn controlled by a 40 percent ownership interest held by Oxford-Cambridge International Group. The Oxford-Cambridge International Group, founded in 1993, is lead by Mr. Sheng Hua, PhD (Economics), chairman and CEO, National Distinguished Scholar of China, student at Oxford and then a fellow at Cambridge.

"We reviewed location-based technology," said Shen Hua, chairman of the board, Jinmei. "After our extensive research, we have chosen Cell-Loc's Cellocate™ product to bring CDMA-based location technology to China."

A-INFO Electronic Technology Group Inc. is a provider of Chinese local digital map and geocoded map content, and has previously partnered for trials of location-based services in China.

"We have a lot of exposure with location technology in China," said JiHong Zhang, president, A-INFO. "We believe that Cellocate^TM technology will fit very well with the Chinese wireless market."

Cell-Loc will have the right to purchase Cellocate^TM equipment manufactured by the joint venture under advantageous terms for sale and use elsewhere throughout the world, and will retain all rights to its technology outside of China, including any improvements achieved by the joint venture.

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. Cell-Loc is listed on the Toronto Stock Exchange under the trading symbol: "CLQ."

Forward Looking Statements: This news release contains certain forward-looking statements. All statements, other than statements of historical fact, included herein, are forward-looking statements that involve various risks and uncertainties. There can be no assurance that such statements will prove to be accurate and actual results and future events could differ materially from those anticipated in such statements. Forward-looking statements are based on the estimates and opinions of management on the date the statements are made, and Cell-Loc does not undertake an obligation to update forward-looking statements should conditions or management's estimates or opinions change.

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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