CellPoint Inc. Reports Preliminary Quarterly Results Including Financials; Revenues Surge as Industry Growth Takes Off.

Business Editors

LONDON--(BUSINESS WIRE)--April 30, 2001

CellPoint Inc. (NASDAQ:CLPT) today announced the Company's unaudited results for the fiscal third quarter ended March 31, 2001.

Peter Henricsson, Chairman and Chief Executive Officer of CellPoint Inc. reported Q3 revenues of $2,463,294 compared to revenues of $265,511 in the quarter ended March 31, 2000 and $946,886 in fiscal Q2.

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 to -$3,108,448, with the average burn-rate down to just over $1 million per month. Current assets excluding other receivables and inventory were $7.5m compared to $10.4m 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 was -$8,703,881. 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. This compares to a Net loss of $6,511,820 for the equivalent period ending March 31, 2000.

"We are very pleased to announce this strong progress, especially considering the difficult backdrop in the Software and Telecommunications marketplaces," says Henricsson. "We are seeing a marked increase in demand from the GSM operators. Delays in 3G deployment are contrary to what might be expected, actually working to our advantage. The current climate makes it even more important for the operators to introduce non-voice services to leverage their investments in existing networks - we are proving that network-wide location services are ready now."

Henricsson concludes, "The undoubted highlight of this quarter is our installation with E-Plus for the world's first commercial, network-based location offering; we look forward to working with E-Plus and many other providers into the future. At a time when the telecoms industry is announcing revenue downturns and headcount reductions, we are growing with this emerging business, both in terms of sales results and personnel to meet the increasing demand."

Peter Henricsson discussed the quarterly report in a question and answer session; a full transcript is posted at www.cellpt.com/corporateupdate2.htm

Summary Highlights

E-Plus - CellPoint delivers world's first commercial network-based location services for leading German operator, E-Plus Listing in Europe - CellPoint successfully gains secondary listing and begins trading on Stockholm O-List CellPoint Launches Channel Sales Division - expert Channel and Business Partner team deployed CellPoint Unwire Strikes M-commerce Deal with MINT - joint development will allow consumers to purchase goods from vending machines using mobile phones CellPoint Unwire Secures More Telematics Business - strategic implementation of wireless application servers for transportation ticketing system

The Company's full report on Form 10QSB will be filed with the SEC before May 15 and will be available at http://www.freeedgar.com

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 Managertm for mobile resource management, iMatetm for location-sensitive information and Findertm, 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.

CellPointtm and CellPoint Systemstm 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 which may cause actual results to differ from those described.

                    CELLPOINT INC. And SUBSIDIARIES
                 Consolidated Statements of Operations
                           (Amounts in US$)


                 Three months ended          Nine months 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     -4 742 237      -600 521     -11 063 744    -2 580 902
and
administrative
expenses
Professional
fees          -369 154    -1 027 433      -1 108 042    -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   -6 362 977    -2 804 279     -18 297 306    -5 693 472
operations

Loss on
sale of              0             0        -342 285             0
investment
Net
interest      -633 797        -9 172      -1 386 785      -818 348
income (expense)

Minority
share of            0             0               0             0
income



Net Loss   -6 996 774    -2 813 451     -20 026 376    -6 511 820

Net loss
per share       -0,66         -0,29           -1,91         -0,73
basic and diluted

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


EBITDA(*)  -3 108 448    -1 424 901      -8 703 811    -3 295 053



(*) EBITDA is defined as: Earnings (loss) before
investment expenses, 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 of
$nil and 36,732,
respectively                        1 184 325                 211 948
Prepaid expenses and other          1 927 815                 160 717
current assets
Other receivables                     552 501                 614 098
Inventory                             424 446                 169 635

Total current assets                8 500 330               7 781 060

Long-term assets:
Acquired technology net of
amortization of $11,153,363
and $3,415,787
 respectively                      61 064 009              68 801 585
Investment in affiliated                    0                 500 000
company
Other intangible assets, net        7 259 643               8 993 080
of amortization of
$4,356,624 and $2,760,972
respectively
Furniture, equipment and            1 355 114                 630 585
motor vehicles, net of
depreciation of $338,962 and
$180,108 respectively

Total long-term assets             69 678 766              78 925 250

Total assets                      $78 179 096             $86 706 310


LIABILITIES AND
STOCKHOLDERS' EQUITY
                               March 31, 2001   June 30, 2000
                                (unaudited)       (audited)
Current liabilities
Accrued expenses and other          $2 222 575      $1 623 441
current liabilities
Accounts payable                     1 443 786         786 766
Due to affiliate                             0          55 517
Other loans and overdrafts           4 101 086         140 510
and current maturities of
long term debt

Total current liabilities            7 767 447       2 606 234

Long term debt, net of               7 938 371       4 000 000
current maturities

Total liabilities                  $15 705 818      $6 606 234

Stockholders' equity:
Common Stock ($0.001 par               $10 733         $10 465
value; authorized -
22,000,000 shares,
10,733,030 shares and
10,465,000 shares issued and
outstanding, respectively)
Additional paid-in capital          98 359 043      95 434 348
Cumulative translation                -232 518         292 866
adjustment
Accumulated deficit                -35 663 980     -15 637 603

Total stockholders' equity          62 473 278      80 100 076




Total liabilities and              $78 179 096     $86 706 310
stockholders' equity

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