Blue Tree Wireless Data Inc. - Fourth quarter revenues up 327%; annual revenues up 145%



    
    Expanding Broadband Networks throughout North America Continue to Fuel
    New Applications and Growth for BlueTree Broadband EvDO Products

    Company reports 2006 year end results

    TSX VENTURE EXCHANGE:  BTW

    MONTREAL, March 8 /CNW Telbec/ - Blue Tree Wireless Data Inc. ("BlueTree")
is pleased to report on its financial and operating results for the fourth
quarter and year ended December 31, 2006.  All amounts are in Canadian dollars
unless indicated otherwise.

    Fourth quarter ended December 31, 2006

    Financial Highlights 2006 Quarterly Analysis

    -------------------------------------------------------------------------
                                        Q4-2006       Q4-2005       Variance
    -------------------------------------------------------------------------
    Revenues $                      $ 1,529,359   $   358,260   $ 1,171,099
                                                                      (+327%)
    -------------------------------------------------------------------------
    Gross Margin $                  $   585,997   $   (96,935)  $   682,932
    -------------------------------------------------------------------------
    Gross Margin %                         38.3%        -27.1%
    -------------------------------------------------------------------------
    Operating gain(loss) $          $   (54,312)  $  (705,473)  $   651,161
    -------------------------------------------------------------------------
    Net gain(loss) $                $  (166,229)  $  (792,084)  $   625,855
    -------------------------------------------------------------------------


    -------------------------------------------------------------------------
                                        Q3-2006       Q2-2006       Q1-2006
    -------------------------------------------------------------------------
    Revenues $                      $ 1,123,109   $   912,164   $   670,606
    -------------------------------------------------------------------------
    Gross Margin $                  $   370,696   $   315,115   $   222,166
    -------------------------------------------------------------------------
    Gross Margin %                         33.0%        34.5%          33.1%
    -------------------------------------------------------------------------
    Operating gain(loss) $          $  (179,211)  $  (281,228)  $  (346,457)
    -------------------------------------------------------------------------
    Net gain(loss) $                $  (158,359)  $  (376,663)  $  (424,052)
    -------------------------------------------------------------------------

    Revenues

    Operating revenues were $1,529,359 for the quarter ended December 31, 2006
as compared to $358,260 in 2005, representing an increase of 327%. The revenue
increase was driven by demand for BlueTree's broadband product portfolio
(EVDO) in both the public safety and fleet management markets. As a percentage
of total revenues, sales in the United States represented 38% in the fourth
quarter of 2006 compared to 43% for the same period in 2005.

    Gross Margin

    Operating gross margin amounted to $585,997 in the fourth quarter of 2006
as compared to a negative gross margin of $96,935 for the same period in 2005.
Gross margin as a percentage of sales increased to 38% for the period in 2006
from -27% for the quarter ending December 31, 2005. Gross margin increase as a
percentage is attributed to the shift of product sales towards the BlueTree's
broadband product portfolio.

    Research and Development Expenses

    BlueTree's net R&D expenses were $138,808 for the fourth quarter of 2006,
a decrease from $149,588 for the same period of 2005. The decrease is due to
the BlueTree's continued focus on streamlining its product portfolio to two
primary architectures targeted to both the mobile computing and fixed market
applications

    Selling Expenses

    Selling expenses were $324,931 in the fourth quarter of 2006, an increase
from $282,194 for the same period in 2005. The increase is primarily driven by
the increase in sales revenue for the quarter.

    Administrative Expenses

    Administrative expenses were $176,570 in the fourth quarter of 2006,
similar to $176,756 in 2005. Management continued to focus on controlling
administrative expenses.

    Net Loss

    The operating loss before interest, foreign exchange and amortization for
the quarter ended December 31, 2006 amounted to $54,312 as compared to
$705,473 in 2005. This operating loss compares to a loss of $179,211 for the
third quarter of 2006. The net loss for the quarter ended December 31, 2006
was $166,229 as compared to $792,084 in 2005. This net loss compares to a loss
of $158,359 for the third quarter of 2006.

    Liquidity

    Cash and cash equivalents of BlueTree amounted to $814,058 as at December
31, 2006 as compared to $410,050 as at September 30, 2006. The increase is
related to continued improvement in the relative financial performance in the
fourth quarter of 2006. In addition, during the fourth quarter BlueTree
received its investment tax credit refund from 2005 of approximately $209,000.

    Business Highlights:

    - The Company's broadband rugged modems continued to experience growing
      market acceptance in the Public Safety, First Responders and Field
      Service Automation markets. The company continued to build its brand,
      particularly in the United States, as a broadband rugged modem supplier
      of choice for many carriers such as Alltel, Bell Mobility, Sprint,
      TELUS and Verizon.
    - The Company continued to focus on further expansion into new fixed
      applications such as security, telemetry and business continuity
      markets. This new market opportunity is being driven by the launch or
      pending launch of the latest generation of wireless broadband services
      (EVDO Rev A) through the major North American carriers.
    - The Company announced a deal with City of Baltimore Police Department
      for an implementation of 250 BlueTree GPS 5600 EVDO modems in their
      patrol vehicles to enable Automatic Vehicle Location and Communications
      services.
    - BlueTree announced that Trican Well Service Ltd., headquartered in
      Calgary, AB has chosen BlueTree Wireless Data's 1xRTT and EVDO modem
      products in support of its wireless field service initiatives.
    - On December 21, 2006, the Company signed a new credit facility of
      $1.2 million with Mercantile Financial Services Ltd. This facility will
      enable BlueTree to finance working capital requirements for its
      expanding broadband wireless modem business.

    Financial Highlights for the year ended December 31, 2006

    -------------------------------------------------------------------------
                                          2006          2005      Variance
    -------------------------------------------------------------------------
    Revenues $                     $ 4,235,238   $ 1,725,217   $ 2,510,021
                                                                     (+145%)
    -------------------------------------------------------------------------
    Gross Margin $                 $ 1,493,974   $   267,815   $ 1,226,159
    -------------------------------------------------------------------------
    Gross Margin %                        35.3%         15.5%
    -------------------------------------------------------------------------
    Operating gain(loss) $         $  (861,208)  $(2,559,114)  $ 1,697,906
    -------------------------------------------------------------------------
    Net gain(loss) $               $(1,125,303)  $(2,889,286)  $ 1,763,983
    -------------------------------------------------------------------------


    Year ended December 31, 2006

    Revenues

    For the year ended December 31, 2006, operating revenues totalled
$4,235,238 compared to $1,725,217 for 2005, representing an increase of 145%.
The revenue increase is primarily related to the general market acceptance of
the Company's broadband modem product portfolio. Sales in the United States
were approximately 47% of revenues in 2006 compared with 43% in 2005.

    Gross Margin

    The operating gross margin was $1,493,974 for the year ended December 31,
2006 as compared to $267,815 for 2005. Gross margin as a percentage of sales
increased to 35.3% in 2006 from 15.5% for the year ended December 31, 2005.
The Company continued to focus on two primary product platforms for their
fixed and mobile applications. This strategy along with the relative increase
in broadband sales in its product mix resulted in higher gross margins.

    Operating Expenses

    Operating expenses decreased to $2,355,182 for the year ended December 31,
2006 compared to $2,826,929 for the year ended December 31, 2005. Management
continued to focus on scaling expenses to better match revenues.

    Net Loss

    The operating loss before interest, foreign exchange and amortization for
the year ended December 31, 2006 amounted to $861,208 as compared to
$2,559,114 for last year. The net loss for the year ended December 31, 2006
was $1,125,303 as compared to $2,889,286 in 2005, representing a reduction of
61%. The decrease in loss stems from the increased sales of its broadband
product portfolio along with a more prudent expense structure.

    Liquidity

    Cash and cash equivalents of BlueTree amounted to $814,058 as at December
31, 2006 as compared to $1,632,954 as at December 31, 2005. This decrease is
directly attributed to funding the Company's net loss for fiscal 2006. The
Company's net cash loss from operating activities before the net change in
non-cash working capital items was approximately $797,000 in 2006 as compared
to approximately $2,548,000 in 2005. On December 21, 2006, the Company signed
a new credit facility of $1.2 million with Mercantile Financial Services Ltd.
This facility will enable BlueTree to finance working capital requirements for
its expanding broadband wireless modem business.

    Forward-looking Statements

    The statements in this report relating to matters that are not historical
facts are forward-looking statements and are subject to important assumptions,
risks and uncertainties, including, but not limited to, general business and
economic conditions, the condition of the financial markets and the other
risks and uncertainties detailed in Management's Discussion and Analysis and
the risks factors described in our annual report for the year ended
December 31, 2006.

    About Blue Tree Wireless Data Inc.

    BlueTree Wireless Data Inc. is a leading developer and manufacturer of
wireless modems and software solutions for commercial and industrial
applications. BlueTree Wireless's CDMA & GSM based modems are designed to
operate on cellular networks worldwide enabling Mobile Computing and M2M
applications in the Public Safety, Fleet Management, Field Service Automation,
SCADA and Telemetry markets. BlueTree Wireless is publicly traded on the
Canadian (TSX) Venture Exchange.

    BlueTree Wireless Data has its main offices located in Montreal, Québec.
    Please visit www.BlueTreeWireless.com for more information.

    The TSX Venture Exchange does not accept responsibility for the adequacy
    or accuracy of this release.
    




For further information:

For further information: Mr. Michael Ramsay, CEO, Blue Tree Wireless
Data Inc., (514) 422-9110 Ext. 445, mramsay@bluetreewireless.com;
http://www.bluetreewireless.com/

Organization Profile

BLUE TREE WIRELESS DATA INC.

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