BSM Technologies Reports Quarterly Revenues of $1.4 Million; Gross Profits Increase by 220%



    WOODBRIDGE, ON, March 2 /CNW/ - BSM Technologies Inc, (GPS: TSXV)
(http://www.bsmtechnologies.com)(the "Company") a leading provider of high
security vehicle tracking and surveillance solutions, is pleased to report
that revenues for the Quarter ended December 31, 2006 increased by 196% to
$1,400,410, compared to $472,327 for the quarter ended December 31, 2005.

    
    Financial highlights for the quarter ended December 31, 2006
    ------------------------------------------------------------

    -   revenue for the quarter increased to $1,400,410, an increase of 196%
        quarter over quarter;
    -   gross profit for the quarter increased to $ 733,918, an increase of
        220% quarter over quarter;
    -   revenue arising from Canadian customers for the quarter ended
        December 31, 2006 increased to $1,205,032, compared with $353,954 for
        the quarter ended December 31, 2005, an increase of 241% quarter over
        quarter;

    Operating highlights for the Quarter
    ------------------------------------

    The following are significant highlights related to the quarter:

    -   On October 5, 2006, the Company announced that it received a
        follow-up order from a Fortune 500 Canadian Transportation company.
        Total value of the contract is $200,000.
    -   On November 16, 2006, the Company announced an order with an
        anonymous oil and gas company. Total value of the contract is
        $450,000.
    -   On December 8, 2006, the Company announced that it has signed a
        non-binding Letter of Intent ("LOI") to acquire a European-based
        satellite telematics distribution company (the "Telematics
        Distributor") for cash consideration of approximately $2.5 million,
        of which approximately $0.5 million is subject to holdback.
    -   On December 8, 2006, the company also announced that it has engaged a
        syndicate of agents, led by Clarus Securities Inc., in connection
        with a proposed private placement of subscription receipts for
        expected gross proceeds of between $3 million and $5 million.
    

    Subsequent to the quarter end, on January 4, 2007 the company announced
closing the private placement for gross proceeds of $ 4,494,000 and on
February 2, 2007, announced closing the acquisition of SecTrack NV
("SecTrack"), a European-based satellite telematics distribution company.

    Results of operations
    ---------------------

    Revenue
    -------

    Revenue for the quarter ended Dec. 31, 2006, increased by 196% to
$1,400,410 from $472,327 for the quarter ended Dec. 31, 2005.

    Gross profit
    ------------

    The gross profit increased by $504,391 for the quarter ended December 31,
2006 to $733,918 from $229,527 for the quarter ended December 31, 2005. The
increase in dollar amount of Gross profit is attributable to higher sales. As
a percentage of revenues, gross profit was 52% compared to 49% for the quarter
ended December 31, 2005.

    Operating expenses
    ------------------

    Overall, operating expenses before interest expenses and amortization
increased by $474,202 to $979,260 for the quarter ended December 31, 2006,
from $505,058 for the quarter ended December 31, 2005. The expenditure to
revenue ratio decreased to 69.9% for the quarter ended December 31, 2006 from
106.9% for the quarter ended December 31, 2005.

    Income/loss from operations
    ---------------------------

    Net loss for the quarter ended December 31, 2006, was $368,417 or $0.01
per share on a diluted basis compared with a net loss of $311,270 or $0.02 per
share on a diluted basis for the quarter ended December 31, 2005. The net loss
per share for the quarter was also impacted by an increase in weighted average
number of common shares from 18,967,798 to 49,170,735 for the quarters ended
December 31, 2005 and 2006.

    Liquidity and capital resources
    -------------------------------

    At December 30, 2006, the Company's working capital was $ 526,787
(December 31, 2005- $ 815). Working Capital has been calculated by netting
current assets and current liabilities, and excluding deferred revenue which
is a non cash item. The increase in working capital is caused by the equity
and convertible debenture financing completed during the period January 2006
to September 2006 and the exercise of warrants during the three months ended
December 31, 2006. The Company intends to use these funds for expanding its
marketing efforts in both Canada and the U.S., and for general working
capital. As with most growth enterprises, depending on the pace of the
anticipated expansion of the company's operations additional financing may be
contemplated in the future.
    The Company has a credit facility with a Canadian Chartered Bank for
$200,000, which allows for a borrowing limit of up to $ 200,000. The balance
of advances outstanding at December 31, 2006 was $198,889 (December 31, 2005:
Nil). Security for the borrowings of the Company has been provided to the bank
in the form of cash collateral agreement assigning GIC in the amount of
$200,000.

    Subsequent events
    -----------------

    As earlier press released:

    On January 4, 2007, the company announced closing the private placement
of subscription receipts (the "Subscription Receipts"). The Private Placement
consisted of 22,470,000, Subscription Receipts at a price of $0.20 per
Subscription Receipt for gross proceeds of $4,494,000. The gross proceeds from
the private placement were to be held in escrow pending the closing of the
acquisition of Sectrack NV("SecTrack"), a European-based satellite telematics
distribution company. Each subscription receipt was to be automatically
exchanged for one unit (the "Unit") of BSM, without payment of additional
consideration, on the date of the closing of the Acquisition. Each Unit
consisted of one common share of BSM and a partial common share purchase
warrant, each whole warrant being exercisable to acquire an additional common
share of BSM at a price of $0.25 per Common Share for a period of 24 months
following the closing of the private placement.
    The acquisition of Sectrack was for cash consideration of approximately
$2.5 million, of which approximately $0.5 million is subject to holdback. The
acquisition was subject to due diligence by BSM, negotiation of all definitive
documentation, completion of the necessary financing, approval by the BSM
board, approval of the TSX Venture Exchange and other customary conditions.
The TSX venture Exchange's conditional approval was obtained on January 2,
2007. On February 1, 2007, the company announced closing the acquisition of
SecTrack.
    The syndicate of agents, led by Clarus Securities Inc.("Agents") were
paid a cash commission of 7% of the gross proceeds of the private placement,
and in addition were granted a number of compensation options (the
"Compensation Options") equal to 10% of the total number of Units sold
pursuant to the private placement. Each Compensation Option entitled the
holder to acquire one Unit under the same terms and conditions as the
Offering, for a period of 24 months following the closing of the private
placement.
    Immediately following the closing of the acquisition of SecTrack, the
22,470,000 subscription receipts issued on the closing of the Company's
previously completed $4,494,000 private placement of January 4, 2007 were
automatically converted into units (each, a "Unit") of the Company. Each Unit
consists of one common share of BSM (the "Common Shares") and one-half of one
common share purchase warrant (the "Warrants"), with each whole Warrant being
exercisable to acquire an additional Common Share of BSM at a price of $0.25
per Common Share until January 4, 2009. These securities remain subject to a
four month hold period until May 5, 2007.
    The Company's consolidated financial statements, accompanying notes and
Management's Discussion and Analysis will be available on the System for
Electronic Document Analysis and Retrieval ("SEDAR") website (www.sedar.com)
on or after March 1, 2007.
    This press release is available on the company's official on-line
investor relations site for investor commentary, feedback and questions.
Investors are asked to visit http://www.agoracom.com/ir/bsm alternatively,
investors are asked to e-mail all questions and correspondence to
GPS@agoracom.com where they can also request addition to the BSM Technologies
investor e-mail list to receive all future press releases and updates
directly.

    About BSM Technologies (GPS:TSX-V) (http://www.bsmtechnologies.com)

    BSM Technologies designs, manufactures and markets a comprehensive line
of AVSL (Automatic Vehicle Security and Tracking) solutions for Fleet
Management, Law Enforcement, and Consumer Vehicle Protection, through its
subsidiary BSM Wireless. The BSM line of products range from Fleet Management
and Consumer Vehicle Protection offerings to the full featured "Stinger"
product featured in news media worldwide as the key technology behind the Bait
and Covert application used by hundreds of Law Enforcement agencies to deter
vehicular, trailer and heavy equipment theft.
    Superior functionality, seamless switching between 2 separate footprints,
enhanced reliability, advanced security features, and excellent value
characterize BSM products. By incorporating advanced wireless locating and
mapping technology, and IP-based communications protocols, the BSM line of
products provides sophisticated real-time monitoring and control of commercial
and personal vehicle assets to meet the demanding needs and stringent
requirements of today's mobile environments. BSM's unique end-to-end
solutions, features sophisticated wireless hardware, firmware and software all
developed by and proprietary to BSM. The BSM product line can be easily
adapted and customized to match any customer user requirement while BSM's
in-house support infrastructure assures that all clients receive the premium
AVSL solution in the industry to meet their needs.

    About SecTrack

    SecTrack sells Inmarsat D+ transceivers and airtime subscription to value
added resellers around the world. These VARs are typically local companies who
have built a proper monitoring and tracking service for end-users in a
multitude of maritime and land based sectors including nuclear transport
monitoring, mining, security tracking of trucks, trailers and other vehicles
and tracking of airplanes and rescue helicopters. The company's customer base
is spread over Europe, Asia, Africa and Central and South America

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

    No stock exchange, securities commission or other regulatory authority
    has approved or disapproved the information contained herein. This News
    Release may include certain "forward-looking statements" that involve
    risks and uncertainties. Actual results may differ materially from
    results indicated in any forward-looking statements. The company cautions
    that, among other things, in view of the rapid changes in communications
    markets and technologies, and other risks including the cost and market
    acceptance of the company's new products, the level of individual
    customer procurements and competitive product offerings and pricing, and
    general economic circumstances, the company's business prospects may be
    materially different from forward-looking statements made by the company




For further information:

For further information: Company Contact: Mr. Nick Cirella, President &
CEO, BSM Technologies Inc., (905) 265-1200, nickcirella@bsmwireless.com,
www.bsmwireless.com; Retail Investor Inquiries: AGORACOM Investor Relations,
http://www.agoracom.com/IR/BSM, GPS@agoracom.com; Retail Broker Inquiries: Ms.
Sheryl Joyce, Account Executive, Barnes McInerney Inc.,
sjoyce@barnesmcinerney.com, www.barnesmcinerney.com


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