CSI scales back Telematics product line investments

(TSX:CSY) - CSI Wireless Inc., a designer and manufacturer of advanced wireless and GPS products, today announced the reduction of staff, expenses and overall investment within its Telematics product line. Historically, the Telematics product line has been the weakest financial performer in CSI, and therefore as a result of these actions, overall corporate performance is expected to improve.

"We will continue to evaluate our Telematics business and are exploring all opportunities for maximizing value from this business unit," said Stephen Verhoeff, CSI Wireless' President and CEO. "As part of this rationalization, we remain focused on the highest-value telematics products in the portfolio and we will be working closely with the customer base to ensure their needs are appropriately served."

Recognized as leaders in their growing markets, the Hemisphere GPS and Fixed Wireless product lines have proven business models. CSI will focus specifically on opportunities driven by its core competencies and those with the greatest earnings potential.

CSI continues to operate its Hemisphere GPS and Fixed Wireless divisions independently, with each having their own operating goals and financial performance targets.

"This initiative will strengthen the overall performance of CSI as we move forward," Mr. Verhoeff said. "Our decision was not taken lightly but we view it as beneficial overall for the company, and it ensures that our resources are allocated to maximize performance and growth for the corporation."

Greater detail regarding the financial impact of these changes will be provided when CSI issues its year-end financial results in early March.

About CSI Wireless

CSI Wireless designs and manufactures innovative, cost-effective, wireless and GPS products for mobile and fixed applications in the agriculture, marine, automotive and other industries. CSI is a leader in several high-growth markets including Precision Guidance in Agriculture and Desktop Cellular Telephones. The Company, through its Wireless and its Hemisphere GPS divisions, owns numerous patents and other intellectual property. It has licensed its cellular technology to GPS, cellular handset, and chipset manufacturers. CSI's common shares trade on The Toronto Stock Exchange under the trading symbol "CSY", with approximately 46 million outstanding. The company's head offices are in Calgary, Alberta, and it has major product development, sales and marketing facilities in California's Silicon Valley, Texas, Arizona and Kansas. For more information about CSI, go to www.csi-wireless.com.

The above disclosure contains certain forward-looking statements that involve substantial known and unknown risks and uncertainties. These forward- looking statements are subject to numerous risks and uncertainties, certain of which are beyond CSI Wireless' control, including: the impact of general economic conditions, industry conditions, increased competition, the lack of availability of qualified personnel or management, fluctuations in foreign exchange or interest rates, stock market volatility and market valuations of companies with respect to the announced transactions and the final valuations thereof, and obtaining required approvals of regulatory authorities. CSI Wireless' actual results, performance or achievement could differ materially from those expressed in, or implied by these forward-looking statements and, accordingly, no assurances can be given that any of the events anticipated by the forward-looking statements will transpire or occur, or if any of them do so, what benefits, including the amount of proceeds, CSI Wireless will derive therefrom.

For further information: please contact Stephen Verhoeff, President & CEO, CSI Wireless Inc., (403) 259-3311; Cory Pala, Investor Relations, E-vestor Communications Inc., (416) 657-2400, cpala@evestor.com; Jeff Adams, Public Relations Manager, CSI Wireless Inc., (403) 259-3311, 615-8747 (cell), jadams@csi-wireless.com

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