Media Centre

Call Genie Reports First Quarter 2011 Financial Results

June 10, 2011

Debt Financing provides $5.0 million of working capital

Toronto, Ontario - June 13, 2011. Call Genie, a leading provider of mobile local search and advertising solutions, today announced its financial results for the quarter ended March 31, 2011. This represents the first time the Company has reported financial results under International Financial Accounting Standards ("IFRS").

First Quarter Results

• Revenues recognized of $1.1 million compares to $0.6 million for first quarter of 2010.
• Earnings Before Interest Depreciation and Amortization of negative $0.6 million compares to negative $2.3 million for the first quarter of 2010.
• Net loss for the quarter ended March 31, 2011 was $1.7 million ($0.02 per share) compared to $3.0 million for the same period in 2010 ($0.04 per share).
• At March 31, 2011 the Company had a cash balance of $2.8 million compared to $0.4 million at December 31, 2010.
• Deferred revenues decreased to $2.8 million at March 31, 2011 from $3.4 million at December 31, 2010.
• During the quarter ended March 31, 2011, the Company completed $5.0 million of debenture financing. $1.5 million of the net proceeds was used to repay interim financing debentures issued in November 2010.

HIGHLIGHTS

• During the quarter, the Company completed a $5.0 million debt financing through the issuance of convertible secured debentures. The debentures bear interest at a rate of 12% per annum, are payable semi-annually, and mature on March 2, 2015. Principal of the debentures is convertible into common shares of the Company, at the option of the debenture holder, at a conversion price of $0.25 per share (subject to adjustment).
• Revenue from transaction fees represented 46% of the $1.1 million revenues reported for the quarter. This compares to the 15% for the same quarter in 2010. See "Financial Outlook" below for further discussion on transaction revenues.

FINANCIAL OUTLOOK

The Company continues to estimate revenues of approximately $2.0 -$2.5 million for the second quarter of 2011 based on an increase in transaction fees.

As previously communicated, the Company is not providing any financial guidance beyond the end of the second quarter of 2011. This is due to the variable nature of performance based revenues including the potential impact of a contract amendment being worked on with a yellow pages provider in the United States, and the variability of business models and potential results.

This news release should be read in conjunction with Call Genie's condensed interim consolidated financial statements and the accompanying notes as at and for the quarter ended March 31, 2011 and the related Management Discussion and Analysis, which have been filed with certain securities regulatory authorities in Canada and are 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 12 countries around the world.

For More Information

Call Genie Inc.
Alex Blodgett, Investor Relations
Tel: +1 403 410-6875
Email: alex.blodgett@callgenie.com

Certain statements included in this News Release are not historical facts, but rather are forward-looking statements. Forward-looking statements are 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 under the heading "Financial Outlook" was approved by management and the Board of Directors of the Company on June 8, 2011 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. Generally, these factors include such things as the Company's current stage of development, the lack of a corporate track record with respect to the generation of revenues from performance-based arrangements with customers, the Company's 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). In respect of the range of revenue that is expected to be reported for the three months ending June 30, 2011, those risks, uncertainties and factors include, but are not limited to, such things as 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 IFRS 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 IFRS or the Company's application of IFRS.

Forward-looking information respecting the range of anticipated revenues for the quarter ending June 30, 2011 is based upon management's estimates of revenues to be derived from existing customer arrangements, the terms of the 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 generating between $1.4 and $1.9 million of revenue from performance-based arrangements with customers during the quarter ending June 30, 2011, management 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 June 8, 2011, customer receipts to June 8, 2011, the Company's revenue recognition policy and management's understanding of IFRS;

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 such 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. 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 interim MD&A for the quarter ended March 31, 2011, which has been filed with certain securities regulatory authorities in Canada and is available through SEDAR, at www.sedar.com.

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