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Western Canadian retailer acquires mobility company

Wireless Age about to acquire Function Mobile

Wireless Age Communications, Inc. (OTCBB:WLSA), announced that it has agreed on the terms and conditions to acquire Function Mobile Inc..

Wireless Age through its 99.7 per cent owned subsidiary, Wireless Age Communications Ltd., is in the business of operating retail cellular and telecommunications outlets in cities in western Canada.

Function Mobile is a development stage company focused on incorporating mobile media into the everyday lives of people. With operations in several jurisdictions across North and South America, they create media channels, marketing solutions and advertising opportunities for brands to interact with consumers.

Wireless Age has agreed, subject to various terms and conditions including regulatory and board of directors approval, to acquire a 100 per cent interest in Function Mobile Inc. for 3,500,000 restricted common shares of Wireless Age and an earnout provision of 10 per cent gross margin on $1,000,000 and 20 per cent on gross margin over $2,000,000 for a period of five years. As part of the transaction, the company agreed to provide a 10 per cent carried interest in the resulting new entity to certain shareholders of Function Mobile in the event Function Mobile is disposed of by way of a going public transaction, or to grant a 10 per cent interest in Function Mobile prior to a private sale of the company.

John G. Simmonds, Wireless Age CEO stated: “We view this as an excellent opportunity to expand beyond our retail operations. Remaining invested in the mobile/wireless game we are now growing into the emerging mobile media, marketing and advertising markets. The ability to capitalize on both transactional and advertising revenue will prove to be a very lucrative industry and we look forward to doing so with Marc and his team.”

In addition, a few members of Function Mobile’s executive team, including their CEO/Founder Marc Askenasi, along with COO/Co-Founder Felix Gelt, will stay on with Wireless Age, for a minimum one-year period, to grow both Function Mobile’s business and assist Wireless Age with their existing operations and identifying new opportunities.

Askenasi said as mobile handset functionality continues to increase, so too will consumer dependency for data related services. This coupled with the resources of Wireless Age and the successful track record of their management team, creates an opportunistic environment to fast track our growth initiatives and build upon our success.

Closing is subject to the completion of definitive documentation and necessary approvals but is scheduled to occur prior to fiscal year end.