News Release

 

 

Cell-Loc Location Technologies Announces Commencement of Commercial Operations for its São Paulo Network

 

Calgary, AB, June 28, 2006 – Cell-Loc Location Technologies Inc. (TSX-V: LTI) ("Cell-Loc" or the "Company") is pleased to announce that its 74% owned Brazilian subsidiary, X3 Telecomunicações e Equipamentos Ltda. (“X3”), has commenced commercial operations in its network in São Paulo, Brazil.

 

Effective this week, X3 has begun installing Cell-Loc’s wireless device (the “Beacon”) in customer vehicles in São Paulo.   Under an agreement with Itaú Seguros S.A. (“Itaú Seguros”), the insurance subsidiary of Investimentos Itaú S.A. (NYSE: ITU), an initial predefined number of the insurer’s vehicles will be equipped with the Beacon.  Itaú Seguros will pay an annual fee for each Beacon in the month following its installation.  Subject to achieving the installation targets, the contract will provide minimum guaranteed revenue of $4.6 million per year. The Company’s network is responsible for providing real time location of stolen vehicles, and if required, remote immobilization by shutting off the fuel supply. 

 

The contract with Itaú Seguros generates significant revenue in the stolen vehicle market.  In addition to Itaú Seguros’ commitment, the Company expects strong demand from the aftermarket due to the high customer awareness for security issues in São Paulo.  The existing network can also be used for numerous other vertical markets including, but not limited to, fleet tracking, asset tracking, people tracking and the added feature of moving small packets of data on demand.

 

About Cell-Loc Location Technologies Inc.

 

Cell-Loc Location Technologies Inc. (www.cell-loc.com) is the developer of 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 North and South America and Asia, with a view to expanding globally. Cell-Loc is listed on the TSX Venture Exchange under the trading symbol: "LTI."

 

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For further information about CLTI and the ongoing technology business, please contact:

 

Sheldon Reid President and CEO  Cell-Loc Location Technologies Inc. Phone: 403.569.5777

Dave Guebert  Vice President, Finance and CFO  Cell-Loc Location Technologies Inc. Phone: 403.569.5796

 

Safe Harbour for Forward Looking Statements: This news release contains certain information that may constitute forward-looking statements under applicable securities laws. Statements made in this news release are not guarantees of future performance and involve a number of risks, uncertainties and assumptions. The reader is cautioned that assumptions used in the preparation of such information, although considered reasonable by the Company at the time of preparation, may prove to be incorrect. Actual results achieved may vary from the results anticipated or implied herein and variations may be material. There is no representation by the Company that actual results achieved will be the same in whole or in part as those implied in any forward looking statements.

 

TSX Venture Exchange has neither approved nor disapproved of the contents of this news release.