WebTech Wireless Inc. (TSX:WEW), a provider of location-based and fleet Telematics services, announced that it is holding $6 million of Asset Backed Commercial Paper in SIT Trust III, Series A Notes. As a result of the Montreal Accord and the result of certain Crawford Commission driven court proceedings recently decided in the Ontario Superior Court, the Company expects to receive new notes in exchange for its existing SIT III Series A Notes.

The Company anticipates that the Settlement Notes will include three classes of notes having the following par values of the SIT III Series A Notes; Class A1 and A2 Senior Notes - 93.4%; Class B Notes - 3.6%; and Class C Notes - 3%. The extent to which the Company may suffer a loss on the Settlement Notes is difficult to quantify. The Company estimates, based on these figures, it will suffer a loss of at least $186,000 being the par value the Class C Notes (which are projected to have little or no market value), as well as a loss of previously accrued interest on the SIT III Series A Notes of approximately $140,000. In addition, the Company will book a yet to be determined "Mark to Market" loss upon issuance of the Settlement Notes, the immediate trading value of which it is unable to estimate at this time.

The Company last week filed a Motion with the Ontario Superior Court to be excluded from the Creditor Release proposed under the Montreal Accord, and is considering further legal actions against Canaccord Capital, the brokerage firm which sold the Company this investment.

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