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Call Genie Issues Progress Report and Announces 2004 Results

March 1, 2005

Call Genie Inc. (TSX-V: GNE), a provider of enhanced voice directory services, is pleased to issue a progress report and announce its audited results of operations for the year ended December 31, 2004.

Progress Report

In January 2005, Call Genie was featured in the Kelsey Group's Local Media Journal. The New Jersey-based Kelsey Group is a leading provider of strategic research and analysis on the yellow pages industry. The Kelsey Group stated: "...we believe Call Genie's technology holds promise for delivering an easy-to-use and valuable voice-enabled Yellow Pages service to consumers. It also provides merchants with an affordable way to reach "on-the-go" shoppers and directory companies with a means for attracting new advertisers, extracting additional revenue from existing customers and providing greater value to consumers". The full text of the article is available on Call Genie's website (www.callgenie.ca).

Call Genie has been asked to present at The Yellow Pages Association ("YPA") conference in Las Vegas , Nevada from March 6 to 8, 2005. The YPA represents the business interests of the North American directory services industry. Call Genie will present its "Emerging Technologies" as part of an executive panel discussion on "Powerful Industry Tips You Can Learn Today and Implement Tomorrow".

In January 2005, Call Genie and Yellow Pages Group Co. ("YPG") deployed the Enhanced Voice Directory Service ("EVD Service") on a commercial basis in the Greater Toronto Area ("GTA"). The EVD Service is an interactive voice recognition based service that provides access to the most popular consumer categories associated with YPG's print and on-line directories. According to the Kelsey Group, the launch of this Call Genie/YPG offering will mark the first time that a service of this nature has been offered anywhere in the world.

In February 2005, YPG's advertising consultants developed a branding and messaging strategy for the EVD Service and introduced "HelloYellow™-Powered by Call Genie™". In connection with the launch, the branding was unveiled: "Hello Yellow™: the Yellow Pages Directory That Travels With You™", which includes the famous Yellow Pages™ walking fingers. "HelloYellow™" is accessed by calling "310-YELO" (310-9356), a catchy, easy to remember number that is a toll free call from anywhere in the service area.

Call Genie has engaged twelve former SuperPages sales personnel for the Toronto market, who are the nucleus of the fourteen person Call Genie sales force in the GTA. In addition, YPG's largest Certified Marketing Representative ("CMR") firm has requested the right to represent and sell listings for the EVD Service. CMR's represent large national advertisers and endeavor to identify industry trends and utilize directional advertising mediums to reach the demographic that their clients target. Call Genie anticipates the CMR will commence selling listings in March 2005.

During the initial rollout of the EVD Service, Call Genie and YPG expect to promote consumer use utilizing those media assets of YPG that can be quickly configured to reflect the "HelloYellow" brand, including Internet sites such as Canada411.com and YellowPages.ca. YPG has arranged with Bell Canada for the advertising of "HelloYellow" through the Vista Screenphone network in the GTA. In addition, the mobile browsers on Bell Mobility phones will be embedded with links to the service. To make it easy for consumers, #YELO (#9356) has been activated with Bell Mobility and new location finding technologies, which enable the service to automatically locate the caller, have been enabled with Bell Mobility.

The EVD Service for the GTA now covers 527 category headings focused on business to consumer content. The location search capability for the EVD Service covers 523 neighborhoods, 264 landmarks and over 4,500 intersections. The database includes over 80,000 businesses, representing over 272,000 business listings and includes data from seventeen print phone books, serving an area of some six million people (including most of the "Golden Horseshoe"). The tuning results of the Calgary and Toronto pilots have been loaded into the system, resulting in increased recognition rates and improved grammar development. The "voice user interface" was updated to better support new users, better accommodate experienced users and enhance the overall consumer experience. The application is now hosted in a Bell Sympatico 24/7 monitored environment with the redundancies required for a carrier grade deployment.

Assuming successful commercial launch and proof of concept in the GTA, the agreement between Call Genie and YPG contemplates that the "HelloYellow" service will be expanded to other urban centers in Ontario and Quebec.

2004 Annual and Fourth Quarter Results

Call Genie's loss for the year ended December 31, 2004 was approximately $1.9 million or $0.07 per share, up 104% from the prior year loss of $0.9 million, or $0.15 per share. The increased loss for the year was primarily the result of increased technology and product development costs ($50,000), increased general and administrative costs ($100,000), increased sales and marketing expenses ($100,000) and increased stock based compensation expense ($200,000).

Expenses for the year ended December 31, 2004 increased to $1,909,622 from $925,024 for the year ended December 31, 2003.

Call Genie's loss in the fourth quarter of 2004 was $475,535, compared to a loss of $532,149 in the fourth quarter of 2003.

On August 17, 2004, Call Genie completed the business combination with GRD Enterprises Inc. ("GRD"). A total of 24,709,139 common shares were issued in connection with that transaction, at a price of $0.30 per share, and a further 4,360,035 shares were reserved for issuance upon the exercise of share purchase warrants.

In conjunction with the business combination, GRD and Call Genie entered into a financing engagement letter with First Associates Investments Inc. to sell 4,444,400 units. The offering closed on August 17, 2004, immediately after the business combination, and raised gross proceeds of $1,999,980 (net proceeds $1,707,207) through the unit offering. Each unit consisted of one common share and one-half of a share purchase warrant. Each full warrant entitles the holder to purchase one common share of Call Genie at a price of $0.90 per share until February 16, 2006. The Agents received options to acquire up to 10% of the units placed at the unit offering price, which options are exercisable until February 16, 2006.

At December 31, 2004, Call Genie had a positive working capital of $1,676,802. Working capital has improved as a result of the business combination and concurrent financing that took place in August, 2004.

At December 31, 2004, the cash position of Call Genie was $1,832,573 compared with $72,869 at December 31, 2003.

The preceding Progress Report and 2004 Annual Results for Call Genie should be read in conjunction with Call Genie's audited financial statements and the accompanying notes for the year ended December 31, 2004 and the related Management Discussion and Analysis, which have been filed on SEDAR ( www.sedar.com ) and on the Call Genie website at www.callgenie.ca

About Call Genie

Call Genie is a provider of enhanced voice directory services. Call Genie's services include: the development of interactive voice recognition applications; marketing and sales planning; operational support; and the management of related technologies and network operations center components. Call Genie is a leader in the voice sector of the interactive, local directory services market - the business of bringing together consumers and merchants. Please visit our website at www.callgenie.com.

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The TSX Venture Exchange has neither approved nor disapproved the contents of this news release.

Certain statements regarding Call Genie Inc. and its business contained herein are forward-looking statements. Forward-looking statements (often, but not always, identified by the use of words such as "expect", "may", "anticipate" or "will" and similar expressions) may include estimates, plans, expectations, opinions, guidance or other statements that are not statements of fact. Although Call Genie Inc. believes that the expectations reflected in such forward-looking statements are reasonable, it can give no assurance that such expectations will prove to have been correct. These statements are subject to certain risks and uncertainties that could cause actual results or outcomes to differ materially from those anticipated or implied in the forward-looking statements. Call Genie Inc. does not assume responsibility for the accuracy and completeness of the forward-looking statements and 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 this cautionary statement. Certain 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 2004 Annual Information Form filed by Call Genie