The Q2 conference call will take place at 9 am MT (11 am ET) on Friday, February 14, 2003. Call details are included at the end of this news release.

CORPORATE HIGHLIGHTS

Private Placement
In January 2003, Cell-Loc completed a private placement of 1,702,456 units, which resulted in proceeds of approximately $970,400.

$40 Million (US) Equity Line of Credit
On May 16, 2002, Cell-Loc announced that it had received final receipts from the Alberta and Ontario securities commissions and closed its prospectus offering of subscription shares and commitment warrants under an equity line of credit for proceeds of up to $40 million (US). As of December 31, 2002 the Company has not drawn on this equity line of credit.

TimesThree Inc.
During fiscal year 2001 TimesThree Inc. ("TimesThree"), a subsidiary of Cell-Loc Inc., signed leases for 115 tower sites in Dallas, Austin and Atlanta, all of which were for a term of five years. As of November 28, 2002, TimesThree had lease rental payments of approximately $1.9 million US due and payable under these contractual arrangements. The lease commitments for tower sites were predicated on the deployment of the Company's cellular location networks. Accordingly, other costs associated with the corporate activities of TimesThree were incurred and remain outstanding.

TimesThree has terminated any further network development in Dallas and Austin and the Company has ceased financial and operations support for TimesThree. TimesThree is in default of its tower lease agreements and has advised the respective tower companies of its inability to make payment on those lease agreements.

TimesThree's only assets at November 28, 2002 were its interests in the tower leases, which the Company values at $nil. TimesThree's debts totaled $5.7 million (US) at November 28, 2002, including $3.3 million (US), which was due to Cell-Loc. With respect to the obligations of TimesThree to third parties, the Company has not provided corporate guarantees, letters of credit or any other financial assurances for the obligations of TimesThree.

The board has determined that, due to the significant debt in TimesThree, the absence of any future economic benefit to Cell-Loc from TimesThree, and there being no liability of Cell-Loc for TimesThree obligations, TimesThree should be de-consolidated from the Cell-Loc financial statements at November 28, 2002. As a result of de-consolidation, the consolidated debt of Cell-Loc was reduced by $3.6 million at November 28, 2002, which has been recognized as a gain for income purposes.

INTERIM MANAGEMENT DISCUSSION & ANALYSIS

During the second quarter ended December 31, 2002 Cell-Loc earned net income of $2.23 million. The gain is primarily attributed to the gain on the de-consolidation of TimesThree Inc. Cell-Loc used $655,000 for operations this quarter, which is a 43 percent decrease from the $1.16 million used for the quarter ended September 30, 2002 and a 175 percent increase from the same quarter last year. Network and capital expenditures for the quarter decreased to $13,000 from $31,000 last quarter and $8,000 for the quarter ended December 31, 2001.

Deferred Revenue
In March 2002, Cell-Loc received $800,000, which had been recorded as deferred revenue from the license agreement with IQ2 Communications Corp. (IQ2) for exercising its option to acquire from Cell-Loc the sole rights to Cell-Loc's intellectual property for use in the Austin, Texas geographic market, subject to an agreement between the parties dated October 5, 2001. During the quarter ended December 31, 2002 an agreement was reached between Cell-Loc and IQ2 granting IQ2 additional future considerations, and relieving Cell-Loc of the requirement to establish a commercial network in Austin. As of December 31, 2002 the Company has recognized this amount as revenue.

Operations
Operating expenses were $1.0 million for the second quarter relative to $2.24 million for the previous quarter and $638,000 for the same quarter last year. The reduction in operating expenses reflects the de-consolidation of TimesThree Inc. Cost savings continue to be realized through consolidation of the number of inventory storage facilities.

Marketing and Business Development:
Expenses for marketing and business development for the quarter ended December 31, 2002 were $40,000. This number has decreased 49 percent from $79,000 for the previous quarter and decreased 70 percent from the same period last year. The lower costs were realized as a result of the restructuring program undertaken in September 2001 and a continued focus on reducing travel and related expenses.

General and Administration
Expenses for general and administration costs for the quarter ended December 31, 2002 were $406,000. The reduction of staff levels and the focus on ensuring expenditures are limited to core projects and essential items have resulted in a consistent level of general and administrative expenditures. The current quarter shows a 40 percent reduction from the $675,000 spent during the same period last year.

Research and Development
As the Company continues to upgrade and develop its technology, research and development expenditures will be required. The expenses are and will continue to be specifically related to the ongoing technical development required to refine the Company's commercial products. The $367,000 expense this quarter reflects an eight percent decrease from the $402,000 last quarter, and reflects a 45 percent decrease from the $666,000 for the quarter ended December 31,2001.

Liquidity and Capital Resources
The December 31, 2002 total cash balance of $562,000 represents a $1.0 million, or 63 percent, decrease from the first quarter cash balance of $1.5 million. The working capital balance has increased to $307,000 from a working capital deficiency of $2.47 million for the period ended September 2002. The increase in working capital for the period ended December 31, 2002 is a direct result of de-consolidating TimesThree Inc. Subsequent to the quarter end, the Company received $970,400 from the January 2003 private placement. The Company has entered into contracts to sell a portion of the assets formerly classified as available for deployment, the proceeds from which will be a source of near term cash. In the absence of the Company selling the network equipment contracted for sale or the Company generating cash by licensing its technology to third parties, the Company will deplete its cash reserves at the end of March 2003. The Company's monthly use of cash continues to be scrutinized to ensure optimal use of cash resources.

Business Risks and Prospects
The Company is actively negotiating commercial contracts. The joint venture agreements currently being negotiated are examples of the focused business strategy that Cell-Loc has now undertaken. Joint venture arrangements, such as those negotiated with IQ2 and Cell-Loc Chongqing will enable the Company to introduce Cell-Loc's technology to the global market.

The ability to source products and continue research and development is contingent on the Company's ability to continue the working relationships that have been established with the vendors and creditors who supply goods and services to Cell-Loc.

The Company's ability to continue to generate revenue and achieve positive cash flow in the future is dependent upon various factors, including the level of market acceptance of its services, the degree of competition encountered by the Company, the cost of acquiring new customers, technology risks, the ability to fund continued network deployment and operations, general economic conditions and regulatory requirements.

About Cell-Loc Inc.
Cell-Loc Inc. (www.cell-loc.com), a leader in the wireless location industry, is the developer of Cellocate™, a family of network-based 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 Asia as well as North and South America, with a view to expanding globally. Cell-Loc is listed on the Toronto Stock Exchange (TSX) under the trading symbol: "CLQ."

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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.

CONFERENCE CALL
On Friday, February 14, 2003, at 9 am MT (11 am ET), a conference call and simulcast will take place. Sheldon Reid, President & CEO, will report on the quarter and answer questions.

Dial In Numbers
Calgary: 403.705.2795
Toronto: 416.640.4127
Toll-Free: 1.888.881.4892

SIMULCAST
Visit http://www.newswire.ca/webcast/viewEventCNW.html?eventID=474760

Cell-Loc contact:

Tammy Yamkowy
Manager, Investor Relations & Public Relations
Phone: (403) 569-5748
tammy.yamkowy@cell-loc.com