CellPoint Inc. Files Third Quarter Results; Announces Financial Calendar for 2001/2.

Business Editors

LONDON--(BUSINESS WIRE)--May 16, 2001

CellPoint Inc. (Nasdaq:CLPT) has filed the Company's unaudited financial results for the fiscal third quarter ended March 31, 2001.

Revenues were $2,463,294 for the quarter and $4,388,301 for the nine months ended March 31, 2001. Revenues grew 2.5 times faster than operating expenses and increased 828% over the same time last year and 160% over the previous quarter. During the quarter, the Company focused on keeping operating expenses under control; this together with the increased sales resulted in an improvement in EBITDA(1) to -$3,108,448, with the average burn-rate down to just over $1 million per month. Current assets at the end of the quarter were $8.5 million, compared to $11.6 million at the end of Q2. The Company has grown to 150 staff from 66 a year ago.

Results for the nine-month period ending March 31, 2001 report revenues of $4,388,301 compared to $619,274 for the period ending March 31, 2000, an increase of 609%. For the nine-month period, EBITDA(1) was -$8,703,811. Selling, general and administrative expenses were $11,063,744 for the nine-month period compared to $2,580,902 in 2000. The Company incurred a Net loss of $20,026,376 which included depreciation and amortization expenses of $9,593,495, $7,737,576 of which was attributable to the acquisition of Unwire in February 2000. This compares to a Net loss of $6,511,820 for the same period ending March 31, 2000.

Preliminary results were released in a press release on April 30, 2001, http://www.cellpt.com/PR/010214eng.htm. There are no material changes in the final results from the preliminary results reported therein.

Peter Henricsson, Chairman & CEO of CellPoint Inc., discussed the quarterly report in a Q&A session; a full transcript is posted at http://www.cellpt.com/corporateupdate2.htm. The Company's full report on Form 10QSB can be viewed at http://www.freeedgar.com.

CellPoint's financial calendar for upcoming reporting:

Fiscal Year 2000/2001 for the year ending June 30, 2001 - August 29,2001

Q1 2001/2002 for the quarter ending September 30, 2001 - November 15,2001

Q2 2001/2002 for the quarter ending December, 2001 - February 14, 2002

Q3 2001/2002 for the quarter ending March 31, 2002 - May 15, 2002

Fiscal Year 2001/2002 for the year ending June 30, 2002 - August 29,2002

(1) EBITDA is defined as: Earnings (loss) before financial items, taxes, depreciation and amortization.

CELLPOINT INC. and SUBSIDIARIES

Consolidated Balance Sheets
(Amounts in US$)
                                           March 31, 2001 June 30, 2000
ASSETS                                     (unaudited)    (audited)

Current assets:
Cash and cash equivalents                  $4,411,243     $6,624,662
Accounts receivable, net of allowance for
 doubtful accounts of $nil and $36,732,
 respectively                               1,184,325        211,948
Prepaid expenses and other current assets   1,927,815        532,617
Other receivables                             552,501        242,198
Inventory                                     424,446        169,635
                                            8,500,330      7,781,060
Total current assets

Long-term assets:
Acquired technology net of amortization    61,064,009     68,801,585
of $11,153,363 and $3,415,787,
respectively
Investment in affiliated company                             500,000
Other intangible assets, net of
 amortization of $4,356,624 and
 $2,760,972, respectively                   7,259,643      8,993,080
Furniture, equipment and motor vehicles,
 net of depreciation of $440,375 and
 $180,108, respectively                     1,355,114        630,585

Total long-term assets                     69,678,766     78,925,250

Total assets                              $78,179,096    $86,706,310

LIABILITIES AND STOCKHOLDERS' EQUITY

Current liabilities
Accrued expenses and other current
 liabilities                              $ 2,222,575    $ 1,623,441
Accounts payable                            1,443,786        786,766
Due to affiliate                                              55,517
Other loans and overdrafts and current
 maturities of long term debt               4,101,086        140,510
Total current liabilities                   7,767,447      2,606,234
Long term debt, net of current maturities   7,938,371      4,000,000

Total liabilities                         $15,705,818    $ 6,606,234
Stockholders' equity:

Common Stock ($0.001 par value;
 22,000,000 shares authorized, 10,733,030
 shares and 10,465,000 shares issued and
 outstanding, respectively)               $    10,733    $    10,465
Additional paid-in capital                 98,359,043     95,434,348
Cumulative translation adjustment            (232,518)       292,866
Accumulated deficit                       (35,663,980)   (15,637,603)
Total stockholders' equity                 62,473,278     80,100,076
Total liabilities and stockholders'
 equity                                   $78,179,096    $86,706,310


CELLPOINT INC. and SUBSIDIARIES


Consolidated Statements of Operations
(Amounts in US$)
                         Three Months              Nine Months
                      Ended         Ended        Ended        Ended
                     March 31,     March 31,    March 31,    March 31,
                     2001           2000         2001         2000
                     (unaudited) (unaudited)  (unaudited)  (unaudited)


Sales, net           $2,463,294     $265,511    $4,388,301    $619,274

Cost of sales           460,351       62,458       920,325      62,458

Gross profit          2,002,943      203,053     3,467,976     556,816

Selling, general and (4,742,237)    (600,521)  (11,063,744) (2,580,902)
administrative
expenses

Professional fees      (369,154)  (1,027,433)   (1,108,043) (1,270,967)

Depreciation and     (3,254,529)  (1,379,378)   (9,593,495) (2,398,419)
amortization

Total operating      (8,365,920)  (3,007,332)  (21,765,282) (6,250,288)
expenses

Loss from operations (6,362,977)  (2,804,279)  (18,297,306) (5,693,472)

Financial Items

Loss on sale of
 investment                   0            0      (342,285)          0


Net interest income
 (expense)             (633,797)      (9,172)   (1,386,785)   (818,348)

Net Loss             (6,996,774)  (2,813,451)  (20,026,376) (6,511,820)

Net loss per share
 basic and diluted         (.66)        (.29)        (1.91)       (.73)

Weighted average
 shares outstanding
 basic and diluted   10,609,015    9,748,333    10,511,861   8,933,361

CellPoint Inc. (Nasdaq and Stockholm OM Exchange: CLPT, www.cellpoint.com) is a US company with subsidiary operations in Sweden, Great Britain and South Africa delivering location and wireless telemetry services in cooperation with cellular operators worldwide. CellPoint's end-to-end cellular location technology is a high-capacity system that works in unmodified GSM networks and uses standard GSM or WAP phones and standard Internet services. Several commercial applications are available for business and personal location services including Resource Manager(tm) for mobile resource management, iMate(tm) for location-sensitive information and Finder(tm), an application for locating friends and family. Subsidiary Unwire's programmable telemetry terminal servers are also integrated with the CellPoint System Platform enabling a broad range of applications for wireless remote management and control.

CellPoint(tm) and CellPoint Systems(tm) are trademarks of CellPoint Inc. Forward-looking statements in this release are made pursuant to the safe harbor provisions of the Private Securities Litigation Act of 1995. Actual results may differ materially from those projected in any forward- looking statement. Investors are cautioned that such forward-looking statements involve risk and uncertainties that may cause actual results to differ from those described.

Copyright(c)CellPoint Inc. 2001

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