Cellpoint raises initial US$5.25 million through private placements

CellPoint Raises Initial US$5.25 Million Through Private Placements London, UK, October 1, 2001 -- CellPoint Inc. (Nasdaq: CLPT), a global provider of mobile location technology and services, has announced the initial raise of US$5.25 million through a series of European private placements. Another initial closing will take place today at the close of business for funds being raised in North America. "The foundation has been built for stable and long-term financial development despite a difficult economic backdrop," said Peter Henricsson, Chairman and CEO of CellPoint Inc. "The majority of the funds raised in this initial closing were subscribed for at a price above the market price of CellPoint's stock at subscription time," added Henricsson. Last week CellPoint announced a restructuring of the floating convertible notes held by Castle Creek Technology Partners; the remaining $6.1 million of notes are now fixed convertible notes at $4.00 per share and carry 6% interest to maturity in October 2002. Use of proceeds included the prepayment and restructuring of the outstanding convertible notes in the total amount of US$3.25 million paid in July and September. The remainder of these funds raised as well as funds from subsequent closings will be used for working capital. Swedish broker BörsInsikt Fondkommission AB has closed its first tranche of their private placement at 21 million Swedish Kronor, or approximately $2 million of the $5.25 million raised. The first tranche from the North American private placement will be completed at the close of business today. This first closing is one part of the board's comprehensive plan on financing and streamlining the company to focus on location services and to reach cash-flow positive in the shortest possible time. This week the company will issue an update on the initial closing of the US placement and explain in more detail how these financings serve the board's overall plan. The private placements in process may require CellPoint to revise certain financial disclosures and forward-looking statements in the fiscal year end report to be filed with the SEC on Form 10-KSB. On Friday, CellPoint filed Form 12b-25 with the SEC advising that the company would not file the year end report within the prescribed time period due to the financing transactions in process which are completing at or just subsequent to the due date of September 28, 2001. CellPoint will file the year end report by October 15, 2001. CellPoint's preliminary financial results for the year ended 30 June 2001 can be viewed on CellPoint's website at http://www.cellpoint.com/PR/010829eng.htm. CellPoint Inc. (Nasdaq and Stockholmsbörsen: CLPT, www.cellpoint.com) is a US company with subsidiary operations in Sweden, Great Britain and South Africa delivering mobile location technology and services in cooperation with cellular operators worldwide. CellPoint's end-to-end cellular location technology is a high-capacity system that works in unmodified GSM networks and uses standard GSM or WAP phones and standard Internet services. Several commercial applications are available for business and personal location services including Resource Managertm for mobile resource management, iMatetm for location-sensitive information and Findertm, an application for locating friends and family. For information, please contact: CellPoint Inc.: Lynn Duplessis, Tel: +44 (0)1344 624 565 info@cellpoint.com; www.cellpoint.com CellPointtm and CellPoint Systemstm are trademarks of CellPoint Inc. Forward-looking statements in this release are made pursuant to the safe harbor provisions of the Private Securities Litigation Act of 1995. Actual results may differ materially from those projected in any forward- looking statement. Investors are cautioned that such forward-looking statements involve risk and uncertainties which may cause actual results to differ from those described. Copyright © CellPoint Inc. 2001 ------------------------------------------------------------ This information was brought to you by Waymaker http://www.waymaker.net The following files are available for download: http://www.waymaker.net/bitonline/2001/10/01/20011001BIT00960/bit0002.doc http://www.waymaker.net/bitonline/2001/10/01/20011001BIT00960/bit0002.pdf