The Company has today been served with a lawsuit filed on May 10, 2007 by LunarEye Inc. in the U.S. District Court in the Eastern District of Texas, for alleged patent infringement. The Company is currently reviewing the lawsuit and believes the lawsuit to be without merit and intends to vigourously and effectively defend itself against the claims contained therein the lawsuit.

The Company has today informed Crown Telecom, its distributor in Brazil, that the Company is demanding payment of amounts owing under its Distributor and Loan Agreements with the Company and that the Company intends to commence a variety of actions designed to protect its interests. These actions follow the expiry on Friday, May 11th, of certain financing proposals offered to Crown intended to provide Crown with working capital to allow Crown to continue to operate as a distributor for the Company. Among the proposals offered to Crown were two offers of financing which the Company assisted in procuring, and an offer to purchase Crown made by the Company.

Although the Company is suspending further shipments, WebTech Wireless will not discontinue the service offered to many thousands of vehicles already activated on the system and on ’24 Horas’ in Brazil.

The amounts owed to the Company by Crown are significant. If the Company is not able to collect the amounts owed, this will have a material impact on the Company’s YTD and quarterly financial statements for the period ended April 30, 2007, as well as its financial forecast for the balance of 2007. The Company does however have significant other business opportunities available to it as well as a strong balance sheet including significant cash reserves.

"It is unfortunate that we have been forced to take these actions against Crown, given the alternatives which we assisted Crown in procuring and in light of the fact that the Crown ’24 Horas’ program is proving to be a success with each of the parties involved - the consumer, insurers and the automobile manufacturer - with over 60,000 of our units installed or at the assembly lines," said Anwar Sukkarie, CEO and co-founder of WebTech Wireless. "The installed units are functioning and returning location data to our servers in Vancouver. We are therefore hopeful that Crown will soon solve its problems so that we can recommence fulfilling the proven demand for our products in Brazil and continue providing Crown with the location data it needs to operate ’24 Horas’. In the meantime we continue discussions with other automobile OEMs and in other countries about offering similar hardware and monitoring services to these OEMs that are included in the ’24 Horas’ program in Brazil."

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