Blue Tree Wireless Data Inc. second quarter revenues up 95% fueled by 3G broadband sales



    TSX VENTURE EXCHANGE: BTW and BTW.WT.R

    MONTREAL, Aug. 30 /CNW Telbec/ - Blue Tree Wireless Data Inc.
("BlueTree") is pleased to report on its financial and operating results for
the second quarter ended June 30, 2007. All amounts are in Canadian dollars
unless indicated otherwise.

    
    Financial Highlights for the second quarter ended June 30, 2007

     - Second quarter ended June 30th, 2007

    -------------------------------------------------------------------------
                                    Q2-2007         Q2-2006        Variance
    -------------------------------------------------------------------------
    Revenues                     $1,775,075        $912,164   $862,911 (+95%)
    -------------------------------------------------------------------------
    Gross Margin                   $647,292        $315,115        $332,177
    -------------------------------------------------------------------------
    Gross Margin %                     36.5%           34.5%
    -------------------------------------------------------------------------
    Operating loss                ($118,950)      ($281,228)       $162,278
    -------------------------------------------------------------------------
    Net loss                      ($205,974)      ($376,663)       $170,689
    -------------------------------------------------------------------------

    -------------------------------------------------------------------------
                                       YTD             YTD
                                     Q2-2007         Q2-2006        Variance
    -------------------------------------------------------------------------
    Revenues                      $3,361,531      $1,582,770      $1,778,761
    -------------------------------------------------------------------------
    Gross Margin                  $1,244,465        $537,281        $707,184
    -------------------------------------------------------------------------
    Gross Margin %                      37.0%           34.0%
    -------------------------------------------------------------------------
    Operating loss                 ($189,297)      ($627,685)       $438,388
    -------------------------------------------------------------------------
    Net loss                       ($348,752)      ($800,715)       $451,963
    -------------------------------------------------------------------------

       - Operating revenues were $1,775,075 for the second quarter in 2007,
         a 95% increase compared to $912,164 for the same period in 2006.
       - Operating gross margin for the second quarter was $647,292 in 2007,
         representing a 105% increase compared to $315,115 for the same
         period in 2006. Gross profit margin as a percentage of sales was
         36.5% in 2007 as compared to 34.5% for the same period in 2006.
       - Export sales were 48% of revenues in the second quarter in 2007,
         5% lower than the second quarter in 2006.

     - Six months ended June 30th, 2007

       - Operating revenues were $3,361,531 for the six months ended June 30,
         2007 compared to $1,582,770 for the same period in 2006,
         representing an increase of 112%.
       - Operating gross margin for the same period was $1,244,465 in 2007
         compared to $537,281 in 2006. Gross profit margin as a percentage of
         sales was 37% in 2007 as compared to 34% in 2006.
       - Export sales were approximately 56% of revenues for this period in
         2007 as compared to 58% in 2006

    Business Highlights:

     - BlueTree Wireless Data Inc. a leading developer and manufacturer of
       rugged wireless modems, announced that its lineup of rugged modems
       were certified and immediately available for use on Sprint's
       Evolution-Data Optimized (EV-DO) Rev. A network. With the
       certification, Sprint customers will be able to use BlueTree's IP 4600
       and GPS 5600 modems to run their wireless data on Sprint's robust
       wireless broadband network
     - The Company partnered with Sprint (NYSE:  S) to supply the Chicago
       Transit Authority (CTA) with the wireless modem hardware equipment
       needed for the CTA Bus Tracker program to be functional on the CTA's
       entire bus fleet. The CTA will use BlueTree's IP 4600 EV-DO Rev A
       modem to run their wireless data on Sprint's wireless EV-DO broadband
       network.
       The CTA Bus Tracker program deployment will start immediately, and
       will be operational throughout the CTA's entire bus fleet.
     - BlueTree announced that it had closed its previously announced private
       placement offering with CTI Capital Inc. Gross and net proceeds were
       in the amount of $1,591,300 and $1,407,189, respectively.
    

    Second quarter ended June 30, 2007

    Revenues

    Operating revenues were $1,775,075 for the quarter ended June 30, 2007 as
compared to $912,164 for the same period in 2006, representing an increase of
95%. The sales increase was driven by market acceptance of BlueTree's line of
EVDO broadband modems into public safety, fleet tracking, telemetry and
landline replacement. The Company experienced increased revenues notably with
Sprint in the United States and Telus in the Canadian marketplace versus the
same period in 2006. Export sales represented 48% of total sales which is
5% lower than the same period in 2006.

    Gross Margin

    Operating gross margin was $647,292 in the second quarter of 2007 as
compared to $315,115 for the same period in 2006, representing a 105%
increase. Gross margin as a percentage of sales was 36.5% in 2007 as compared
to 34.5% in 2006. The increase in gross margin was directly attributable to
the Company's continued focus on its broadband product portfolio.

    Research and Development Expenses

    BlueTree's net R&D expenses were $186,786 for the second quarter of 2007,
a 42% increase from $131,385 for the same period of 2006. This is primarily
attributable to the increase in staffing and recruiting costs related to the
launch of the Company's 3G platform of wireless modems.

    Selling Expenses

    Selling expenses were $374,829 in the second quarter of 2007, a 23.5%
increase from $303,499 for the same period in 2006. The increase is primarily
attributable to higher commissions associated with corresponding higher sales
along with the hiring of a Vice President Business Development in the United
States.

    Administrative Expenses

    Administrative expenses were $204,627 in the second quarter of 2007, a
27% increase from $161,459 in 2006. The increase is primarily attributable to
higher salaries.

    Total Operating Expenses

    Total operating expenses were $766,242 in the second quarter of 2007, an
increase from $596,343 in 2006 representing a 28.5% increase. This increase is
primarily a direct result of increased revenues.
    The Company anticipates incurring material transaction costs in the third
quarter related to the proposed transaction with Sixnet LLC announced in a
press release on August 27, 2007.

    Net Loss

    The net loss for the second quarter ended June 30, 2007 was $205,974,
compared to $376,663 for the same period in 2006, representing an improvement
of $170,689. The loss before interest, foreign exchange and amortization was
$118,950 for the second quarter in 2007 and $281,228 in 2006, representing a
material improvement in the Company's operating results.


    Six months ended June 30, 2007

    Revenues

    For the six months ended June 30, 2007, operating revenues totalled
$3,361,531 compared to $1,582,770 for the same period last year, representing
an increase of 112%. The increase was driven by market acceptance of
BlueTree's line of EVDO broadband modems into public safety, fleet tracking,
telemetry and landline replacement.

    Gross Margin

    The operating gross margin was $1,244,465 for the six months ended
June 30, 2007 as compared to $537,281 for the same period in 2006. Gross
margin as a percentage of sales increased to 37% for the period in 2007 from
34% for the six months ended June 30, 2006.

    Operating Expenses

    Operating expenses increased to $1,433,762 for the six months ended
June 30, 2007 compared to $1,164,966 for the six months ended June 30, 2006.

    Net Loss

    The operating loss before interest, foreign exchange and amortization for
the six months ended June 30, 2007 amounted to $189,297 as compared to
$627,685 for last year. The net loss for the same period in 2007 was $348,752
as compared to $800,715 in 2006, representing a reduction of 56%. The decrease
in the loss was mainly due to higher sales.

    Liquidity

    Cash and cash equivalents of BlueTree amounted to $1,144,474 as at
June 30, 2007 as compared to $385,523 as at March 31, 2007. This increase is
primarily related to funds raised through the private placement offering with
CTI Capital Inc. The Company's net cash loss from operating activities before
the net change in non-cash working capital items was $134,342 in the second
quarter of 2007 as compared to $292,983 in the second quarter of 2006. The
company also has an unused line of credit of $1.2 million.

    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 risk 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 head office located in Montreal, Canada.
    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

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BLUE TREE WIRELESS DATA INC.

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