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TORONTO, ONTARIO--(Marketwire - May 14, 2010) - Call Genie (TSX:GNE), a leading provider of mobile local search and advertising solutions, today announced financial results for the three months ended March 31, 2010.

FIRST QUARTER 2010 RESULTS

• At March 31, 2010, the Company had a cash balance of $1.1 million compared to $3.4 million at December 31, 2009.

• Deferred revenues of $4.7 million as at March 31, 2010 compares to $4.7 million at December 31, 2010.

• Revenues recognized of $0.6 million for Q1 2010 compares to $0.9 million for the first quarter of 2009.

• Net loss for the three months ended March 31, 2010 was $3.0 million (0.04 per share) compared to $3.2 million for Q1 2009 (0.04 per share).

OUTLOOK

Mr. Michael Durance, the Company's Chief Executive Officer, noted, "Our first quarter results were all within the range identified by the Company in its 2009 annual MD&A issued on March 23, 2010. In second half of 2010, the Company continues to expect a number of key projects to move into the commercialization phase, as a result of which the Company will begin to realize performance based reoccurring revenues. For the year ended December 31, 2010, the Company expects total revenues to grow by 100% to $7.0 million, which will support the generation of positive net income from operations by the end of Q4."

Mr. Durance further noted, "We believe that the long term prospects of the Company remain strong as we continue to see vibrancy in our sales pipeline. We've initiated discussions concerning a new financing (up to $2.5 million) and expect the first tranche to close before the end of the second quarter."

This news release should be read in conjunction with Call Genie's unaudited financial statements and the accompanying notes as at and for the three months ended March 31, 2010 and the related Management Discussion and Analysis ("MD&A"), which have been filed with certain securities regulatory authorities in Canada and available on SEDAR ([ www.sedar.com ]) and on the Call Genie website at [ www.callgenie.com ]

About Call Genie Inc.

Call Genie is a leading global solutions provider in mobile local search and mobile digital interactive advertising. Call Genie enables traditional industries to move to new business models that support the connection of mobile consumers and local merchants. Solutions provided include search and advertising serving technology and services that utilize advanced wireless networks as well as the mobile internet to enable a "mobile ecosystem" that encompasses advertisers, service providers (e.g., internet yellow pages, carriers, network broadcasters) and mobile users. Currently, Call Genie solutions are deployed in 14 countries around the world. [ www.callgenie.com ]

Certain information set out in this news release constitutes forward-looking information. Forward-looking information is often, but not always, identified by the use of words such as "seek", "anticipate", "hope", "plan", "continue", "estimate", "expect", "may", "will", "intend", "could", "might", "should", "scheduled", "believe" and similar expressions. The forward-looking information set out in this news release includes the following information, most of which is set out below under the heading "Financial Outlook": (i) the revenue growth that is expected to be reported for the 12 months ending December 31, 2010; (ii) expected net income from operations for the quarter ended December 31, 2010; (iii) the number and impact of key customer projects moving into the commercialization phase in 2010, resulting in the Company earning performance based revenues; and (iv) the amount and timing of the completion of additional financing. Financial information included in this news release of the nature described in items (i) and (ii) above was approved by management and the Board of Directors of the Company on May 11, 2010 and such information has been included to provide readers with an estimate of certain financial results that may be generated by the Company as it moves into a new phase with the commercialization of various technologies. Readers are cautioned that such information may not be appropriate for other purposes.

Forward-looking statements are based upon the opinions, expectations and estimates of management and, in some cases, information received from or disseminated by third parties, and are subject to a variety of risks and uncertainties and other factors that could cause actual events or outcomes to differ materially from those anticipated or implied by such forward-looking statements. These factors include such things as the Company's current stage of development, the lack of track record with respect to the generation of revenues from performance-based arrangements with customers, its reliance on third parties and third party technology, the existence of competition, the availability of external financing, the inherent risks associated with research and development activities and commercialization of emerging technologies (such as lack of market acceptance), timing of execution of various elements of the Company's business plan, the availability of human resources, the emergence of competing business models and new laws (domestic or foreign) and the other risk factors noted below in this paragraph and in the Company's quarterly MD&A for the three months ended March 31, 2010 under the heading "Business Risks and Uncertainties". In respect of the growth in revenue that is expected to be reported for the 12 months ending December 31, 2010, those risks, uncertainties and factors include, but are not limited to, such things as the ability of the Company to meet its contractual commitments, lack of a sufficient level of demand for services that generate performance based revenues, anticipated call volumes under performance-based arrangements entered into with customers not materializing as expected (with the result that performance based revenue generated by the Company falls short of expectations), the ability to invoice customers and collect amounts owed, the continued solvency of the Company's customers, the ability to complete legal agreements on a timely basis, the level of transactions causing deferred revenue to be recognized not increasing as expected, the ability of the Company to obtain the necessary documentation required under Canadian generally accepted accounting principles ("GAAP") to permit the recognition of revenue, material changes in the business terms agreed to by the Company and one or more of its existing customers, and changes in GAAP or the Company's application of GAAP. In respect of expectations concerning net income from operations for the quarter ending December 31, 2010, those risks, uncertainties and factors include, but are not limited to, such things as the ability of the Company to meet its contractual commitments, lack of a sufficient level of demand for services that generate performance based revenues, anticipated call volumes under performance-based arrangements entered into with customers not materializing as expected (with the result that performance-based revenue generated by the Company falls short of expectations), the ability to invoice customers and collect amounts owed, the continued solvency of the Company's customers, the ability to complete legal agreements on a timely basis, the level of transactions causing deferred revenue to be recognized not increasing as expected, the ability of the Company to obtain the necessary documentation required under GAAP to permit the recognition of revenue, material changes in the business terms agreed to by the Company and one or more of its existing customers, changes in GAAP or the Company's application of GAAP, and the inability of the Company to reduce cash expenses in accordance with business plan expectations. In respect of the number and impact of key customer projects expected to move into the commercialization phase in 2010, resulting in the Company earning performance based revenues, those risks, uncertainties and factors include, but are not limited to, such things as the ability of the Company to meet its contractual commitments, lack of a sufficient level of demand for services that generate performance based revenues, anticipated call volumes under performance-based arrangements entered into with customers not materializing as expected (with the result that performance-based revenue generated by the Company falls short of expectations), the ability to invoice customers and collect amounts owed, the continued solvency of the Company's customers, the ability to complete legal agreements on a timely basis, the level of transactions causing deferred revenue to be recognized not increasing as expected, the ability of the Company to obtain the necessary documentation required under GAAP to permit the recognition of revenue, material changes in the business terms agreed to by the Company and one or more of its existing customers, and changes in GAAP or the Company's application of GAAP. In respect of the amount and timing of the financing activities undertaken by the Company, those risks, uncertainties and factors include, but are not limited to, such things as the ability of the Company to complete financing agreements with prospective investors that are approved by the Company's Board of Directors and the TSX. Accordingly, readers should not place undue reliance upon the forward-looking information contained herein and the forward-looking statements contained in this news release should not be considered or interpreted as guarantees of future outcomes or results.

Forward-looking information: (i) respecting the growth in revenues that is expected to be reported for the year ended December 31, 2010 is based upon management's estimates of revenues to be derived from existing customer arrangements, the terms of agreements entered into with those customers, information received from customers with respect to anticipated call volumes for Call Genie enabled services (upon which performance-based compensation is dependent), customers devoting sufficient resources to the advertising of Call Genie-enabled services to effectively promote awareness and usage of such services (which is necessary to permit the Company to earn performance-based revenues in accordance with business plan expectations), the Company earning not less than $4.4 million from performance-based arrangements with customers, management's estimates respecting the timing of execution and delivery of services to be performed, the historical pattern of timing of cash receipts, amounts invoiced to customers to May 5, 2010, customer receipts to May 5, 2010, the Company's revenue recognition policy and management's understanding of GAAP; (ii) respecting the expected net income from operations for the quarter ended December 31, 2010 is based upon customer receipts to May 5, 2010, the existing terms of arrangements with customers, the Company's historical experiences with prior customer projects (including the time required to move from contract negotiations to commercialization), information received from customers with respect to anticipated call volumes for Call Genie enabled services (upon which performance-based compensation is dependent), the Company earning not less than $4.4 million from performance-based arrangements with customers, management's estimates of revenues to be derived from existing customer arrangements, the terms of agreements entered into with those customers, customers devoting sufficient resources to the advertising of Call Genie-enabled services to effectively promote awareness and usage of such services (which is necessary to permit the Company to earn performance-based revenues in accordance with business plan expectations), the Company's planned expenditure rate and contractual arrangements with respect to existing staff, facilities and administrative support costs; (iii) respecting the number and impact of key customer projects expected to move into the commercialization phase in 2010, resulting in the Company earning performance based revenues, is based upon the Company's historical experiences with prior customer projects (including the time required to move from contract negotiations to commercialization), information received from customers with respect to anticipated call volumes for Call Genie enabled services (upon which performance-based compensation is dependent), customers devoting sufficient resources to the advertising of Call Genie-enabled services to effectively promote awareness and usage of such services (which is necessary to permit the Company to earn performance-based revenues in accordance with business plan expectations), management's estimates of revenues to be derived from existing customer arrangements and the terms of the agreements entered into with those customers; and (iv) respecting the amount and timing of the of the financing activities undertaken by the Company is based upon the Company's historical record of raising financing and recent discussions with prospective investors.

Call Genie Inc. does not assume responsibility for the accuracy and completeness of the forward-looking statements set out in this news release and, subject to applicable securities laws, does not undertake any obligation to publicly revise these forward-looking statements to reflect subsequent events or circumstances. Call Genie Inc.'s forward-looking statements are expressly qualified in their entirety by the foregoing cautionary statement. Additional information relating to various risk factors to which Call Genie is exposed in the conduct of its business (and which may affect the expectations or outcomes reflected in the forward-looking statements contained in this news release) are described in the Company's quarterly MD&A for the three months ended March 31, 2010, which has been filed with certain securities regulatory authorities in Canada and is available through SEDAR, at [ www.sedar.com ].