BSM Announces 500 Units, $570,000 Order From a Multi National Services Company

BSM Announces 500 Units, $570,000 Order From a Multi National Services Company, Restates Financials, and Provides update on Business Combination

Woodbridge, Ontario, CANADA, August 14, 2009 ‐ BSM Technologies Inc, (BSM)(GPS: TSX‐V) (http://www.bsmwireless.com) a leading provider of high security vehicle tracking and surveillance solutions today announced receipt of a large order worth approximately $570,000 (over the life of the contract) related to its products and services by one of its major channel partners. The end customer is a multi‐national service company (“MNSC”) located in Greater Toronto Area. For security reasons, the identity of the MNSC will remain confidential. 

The Company also announced that it has released amended and restated audited financial statements for the year ended September 30, 2008, amended and restated un‐audited interim financial statements for the three months ended December 31, 2008 and amended and restated un‐audited interim financial statements for the three and six months ended March 31, 2009. As a result of these restatements, the reduction in net loss for the year ended September 30, 2008 was $ 44,701, for the three months ended December 31, 2008 the reduction in net loss was $ 104,120, and for the three months ended March 31, 2009 the reduction in net loss was $ 41,543.  

BSM AWARDED CONTRACT FOLLOWING STRINGENT PEER GROUP DUE DILIGENCE 

MNSC provided stringent testing criteria to conclusively determine that the BSM solution would meet their needs. BSM met and surpassed the testing criteria. All 500 units will be deployed over 3 months. “This affirms BSM’s ability to provide unique solutions to a Customer with specific enterprise requirements” commented Mr. Aly Rahemtulla, President and CEO of BSM Technologies Inc.  

RESTATEMENT OF FINANCIALS

The Company has discovered that the measurement and presentation of the liability and equity portion of the Convertible Debenture as shown on the balance sheet for the year ended September 30, 2008, three months ended December 31, 2008, and three and six months ended March 31, 2009 was incorrect and that certain balance sheet items were misstated and misclassified for the year ended September 30, 2008 and interim statements for the three months ended December 31, 2008 and March 31, 2009.

In addition, the Company believes that its accounting for certain sales transactions in the interim unaudited financial statements for the quarter ended December 31, 2008 and March 31, 2009 was incorrect. In the quarter ending December 31, 2008, the Company instituted a program under which it sold certain products on an “all‐inclusive” (hardware and service) basis that allowed customers to pay a fixed monthly rate for the all-inclusive package. All of this revenue was initially recognized on a monthly basis. The Company now believes that the hardware portion of the all‐inclusive plan should have been recognized as a sales‐type lease, as under the arrangement substantially all the benefits and risks incident to ownership of hardware are transferred to the customer and, at the inception the fair value of the hardware is greater or less than its carrying amount. The portion related to the service provided was correctly recognized on a monthly basis. The allocation of the sales between the hardware and service sales has, in accordance with the Company’s accounting policy related to multiple deliverables, been determined based on the relative fair value of the elements of the arrangement based upon the normal pricing practice for the product and service when sold separately.

The Company has corrected these errors and restated the audited financial statements for the year ended September 30, 2008 and the interim unaudited financial statements for the quarter ended December 31, 2008 and March 31, 2009. The explanation note disclosure is found in Note 22 of the restated audited financial statements for the year ended September 30, 2008 and Note 18 of the restated interim unaudited financial statements for the quarter ended December 31, 2008 and March 31, 2009.

As a result of these restatements, following are the key adjustments the Company recorded through March 31, 2009:

• Fiscal 2008: Interest expenses on the Convertible Debenture and net loss for fiscal 2008 decreased by $44,701, Convertible Debenture liability decreased by $ 978,539, deferred financing costs decreased by $ 568,596 and shareholders’ equity increased by $ 409,943. The basic and diluted loss per share remained unchanged.

• Interim three months ended December 31, 2008: Revenue increased by $ 126,230, cost of sales increased by $ 55,712, gross profit increased by $ 70,518, interest on the Convertible Debenture decreased by $ 33,602. The net loss for the three months ended December 31, 2008 decreased by $104,120. The basic and diluted loss per share decreased to $ 0.003.

The total assets decreased by $ 422,659, total liabilities decreased by $ 936,722 and shareholders’ equity increased by $ 514,063 (inclusive o effect of the restatement of Fiscal 2008 financial statements).

• Interim three months ended March 31, 2009: Revenue increased by $ 34,611, cost of sales increased by $ 16,769, gross profit increased by $ 17,842, interest on the Convertible Debenture decreased by $23,699. Other expenses decreased by $2. The net loss for the three months ended March 31, 2009 decreased by $ 41,543. The basic and diluted loss per share decreased to $ 0.002.

The total assets decreased by $ 319,958, total liabilities decreased by $ 885,564 and shareholders’ equity increased by $ 555,606 (inclusive of effect of the restatement of Fiscal 2008 and interim three months ended December 31, 2008 financial statements). 

The Company’s amended and restated consolidated financial statements, accompanying notes and Management’s Discussion and Analysis will be available on the System for Electronic Document Analysis and Retrieval (“SEDAR”) website (www.sedar.com) on or before August 14, 2009.  

UPDATE ON PROPOSED BUSINESS COMBINATION WITH DATACOM WIRELESS CORPORATION 

The Company also announced that its proposed business combination With Datacom Wireless Corporation is progressing as scheduled, with the mailing of information circular scheduled for the week of August 17th, 2009, and shareholder meeting scheduled for September 16, 2009. 

This press release is available on the Company’s official website at http://www.bsmwireless.com. Alternatively, investors are able to e‐mail their questions to ir@bsmwireless.com where they can also request addition to the BSM investor e‐mail list.  

About BSM Technologies

BSM Technologies designs, manufactures and markets a comprehensive line of AVSL (“Automatic Vehicle Security and Tracking”) solutions for Commercial and Government Fleet Management, including Law Enforcement, through its subsidiary BSM Wireless. The BSM line of products range from Fleet Management and Consumer Vehicle Protection offerings to the full featured Stinger product line. Featured in news media worldwide, BSM’s Stinger product is the key technology behind the Bait and Covert applications used by hundreds of Law Enforcement agencies to deter vehicular, trailer and heavy equipment theft. 

Superior functionality, seamless switching between multiple communication networks, enhanced reliability, advanced security features, and excellent value characterize BSM products. By incorporating advanced wireless locating and mapping technology, and IP‐based communications protocols, the BSM line of products provides sophisticated real‐time monitoring and control of commercial and personal vehicle assets to meet the demanding needs and stringent requirements of today’s mobile environments.  

About SecTrack

SecTrack is a European‐based satellite telematics distribution company, selling Inmarsat D+ and IsatM2M transceivers and airtime subscription to value added resellers throughout Europe, Asia, Africa, Central and South America. It has a network of more than 220 value‐added resellers in over 38 countries servicing a multitude of maritime and land based sectors including nuclear transport monitoring, mining, security tracking of trucks, trailers and other vehicles and tracking of airplanes and rescue helicopters. For more information please visit http://www.sectrack.be  

About Netistix Technologies

Incorporated in 2002, Netistix Technologies Corporation is head quartered in Woodbridge, Canada and has developed FleetPulse, a comprehensive and customizable wireless fleet management system leveraging direct connection to vehicle diagnostic systems, and communicating via cellular or Wi‐Fi communication networks. The FleetPulse Wireless Fleet Management System delivers actionable information that reduces fleet operation and environmental costs, improves productivity and increases safety. For more information, please visit http://www.netistix.com  

NonGAAP Measures

EBITDA is not a recognized measure of financial performance under GAAP. BSM calculates EBITDA as the operating profit before interest, taxes, depreciation and amortization of intangible assets. BSM’s method of calculating EBITDA may differ from other companies and accordingly, may not be comparable to measures used by other companies.  

Company Contact

Mr. Aly Rahemtulla President and CEO BSM Technologies Inc.

1 (905) 265 1200

ir@bsmwireless.com www.bsmwireless.com  

Except for historical information contained herein, this news release contains forwardlooking statements that involve risks and uncertainties. Actual results may differ materially. Factors that might cause a difference include, but are not limited to, market acceptance of principal products, the impact of competitive products and technologies, the possibility of products infringing patents and other intellectual property of fourth parties, and costs of product development.

The TSX Venture Exchange has not reviewed and does not accept responsibility for the adequacy or accuracy of this release.  

No stock exchange, securities commission or other regulatory authority has approved or disapproved the information contained herein. This News Release may include certain “forwardlooking statements” that involve risks and uncertainties. Actual results may differ materially from results indicated in any forwardlooking statements. The company cautions that, among other things, in view of the rapid changes in communications markets and technologies, and other risks including the cost and market acceptance of the company’s new products, the level of individual customer procurements and competitive product offerings and pricing, and general economic circumstances, the company’s business prospects may be materially different from forwardlooking statements made by the company.