PITT MEADOWS, BRITISH COLUMBIA -- (Marketwire) -- 08/16/10 -- Tranzeo Wireless Technologies Inc. (TSX: TZT), a leading producer of high-speed wireless broadband communication systems, today announced its financial results for the second quarter 2010.

Acquisition of Aperto Networks:

--  Tranzeo acquired Aperto Networks on April 16, 2010 which now positions
    Tranzeo to provide a complete WiMAX solution for major
    telecommunications providers.

Financial Highlights:

--  Revenue was $5.1 million compared with $3.3 million year over year.
--  Gross profit was $1.5 million compared with $1.0 million year over year
--  EBITDA (excluding stock based compensation) was a loss of $1.9 million
    for 2010, compared to a loss of $0.1 million for 2009. The increase in
    the loss was the result of merging the operations of Aperto with
    Tranzeo, one time acquisition costs of $0.4 million and expensing all
    research and development costs in 2010 versus capitalizing those costs
    as deferred costs in 2009. The amount capitalized in 2009 was $0.8
    million.
--  The maximum potential earn out position for the acquisition of Aperto
    was required to be recorded under Canadian GAAP. The maximum potential
    shares are 9. 1 million and are valued at $1.618 resulting in an earn
    out value of $14.7 million. This value, along with the net liability
    position of Aperto, which included debt that was converted to equity
    subsequent to the acquisition , resulted in technology rights that was
    recorded as an asset at $19.6 million. This is being amortized straight
    line over five years.

Tranzeo and the Tranzeo logo are registered trademarks of Tranzeo Wireless Technologies Inc.

About Tranzeo Wireless Technologies Inc:

Tranzeo Wireless Technologies Inc. (TSX: TZT) leads the wireless broadband industry as a premier manufacturer of high-performance wireless network equipment that allows communities and businesses to communicate without boundaries. Tranzeo's optimum cost effectiveness, premium quality and responsive support have attracted a growing and devoted worldwide following of more than 2,465 dealers and 12 distributors. Tranzeo's full spectrum of point-to-point and point-to-multipoint radios, WiMAX equipment, and mesh network solutions are designed for wireless internet service providers, governments, campuses, military, carriers, enterprise customers, and systems integrators around the globe. Headquartered in British Columbia, Canada, Tranzeo also has offices in San Jose and San Diego, California and Shannon, Ireland. Visit http://www.tranzeo.com or phone 1.866.872.6936.

Forward-Looking Statements

Certain statements in this Press Release, including the expectations of revenue for Q2 and for the 2010 fiscal year provided above, constitute forward-looking statements or forward-looking information within the meaning of applicable securities laws. These statements are subject to certain assumptions, risks and uncertainties. Material factors and assumptions used to develop such estimates include:

--  Tranzeo's expectations regarding the timing and amount of existing and
    future purchase orders;
--  Tranzeo's expectations regarding integration of Aperto and Aperto's line
    of products;
--  Tranzeo's ability to provide integrated complete WiMAX solutions for
    major telecommunications providers; and
--  Tranzeo's manufacturing capacity to fulfill demand for increased product
    orders.

Readers are cautioned not to place undue reliance on such statements.

These statements are provided to enable external stakeholders to understand Tranzeo's expectations as of the date of this release and may not be appropriate for other purposes.

Actual results, performance, achievements or developments of Tranzeo may differ materially from the results, performance, achievements or developments expressed or implied by such statements. Risk factors that may cause the actual results, performance, achievements or developments of Tranzeo to differ materially from the results, performance, achievements or developments expressed or implied by such statements can be found in the public documents filed by Tranzeo with Canadian securities regulatory authorities, which are available at www.sedar.com, and include the following:

--  Tranzeo's growth is contingent upon its ability to fulfill existing
    purchase orders and secure future purchase orders for WiMAX and WiFi
    products;
--  Tranzeo may encounter unforeseen difficulties in integrating the
    business of Aperto, which could result in increased costs and lower than
    expected revenues;
--  Tranzeo's growth is dependent upon the development and growth of the
    market for WiMAX products;
--  The continued effects of the global economic downturn could impede
    global demand for WiMAX products and the growth of Tranzeo's business;
--  Tranzeo's is still dependent on existing WiFi business;
--  Tranzeo's success depends on its ability to develop new products and
    enhance existing products;
--  Tranzeo's quarterly and annual revenues and operating results are
    difficult to predict and can fluctuate substantially;
--  Tranzeo's ability to grow is contingent upon it having adequate capital,
    either from existing operations or from future financings; and
--  There is no assurance that Tranzeo will be able to secure additional
    debt or equity financing to expand its operations.

Tranzeo assumes no obligation to update or revise any forward-looking statements or forward-looking information, whether as a result of new information, future events or otherwise, except as expressly required by law.

                         Consolidated Balance Sheets

                                            June 30, 2010       December 31,
                                               (Unaudited)             2009
                                            -------------------------------

Assets
Current assets:
  Cash                                      $      93,540  $      1,837,832
  Accounts receivable                           3,070,792         3,383,960
  Prepaid expenses                                658,974           331,805
  Inventory                                     6,053,144         4,581,481
                                            -------------------------------
                                                9,876,450        10,135,078
Property and equipment                         10,896,142        10,912,869
Technology rights                              18,799,705                 -
                                            -------------------------------
                                            $  39,572,297  $     21,047,947
                                            -------------------------------
                                            -------------------------------

Liabilities and Shareholders' Equity
Current liabilities:
  Accounts payable and accrued liabilities  $   8,213,635  $      3,941,790
  Due to related party                            101,318           251,318
  Current portion of equipment loan                18,879            18,879
  Current portion of capital lease
   obligation                                     280,717           579,644
  Short term debt                                 264,500           100,000
                                            -------------------------------
                                                8,879,049         4,891,631
Equipment loan                                     37,761            47,201
Capital lease obligation                           85,986            24,456
                                            -------------------------------
                                                9,002,796         4,963,288

Shareholders' equity:
  Share capital                                32,484,451        28,407,690
  Shares issuable                              14,691,862                 -
  Contributed surplus                           2,971,182         2,104,729
  Retained deficit                            (19,577,994)      (14,427,760)
                                            -------------------------------
                                               30,569,501        16,084,659
                                            -------------------------------
                                            $  39,572,297  $     21,047,947
                                            -------------------------------
                                            -------------------------------



          Consolidated Statements of Operations and Deficit
                             (Unaudited)

                           Three Months Ended              Six Months Ended
                                      June 30                       June 30
                          2010           2009           2010           2009
                 ----------------------------------------------------------

Sales            $   5,083,385  $   3,332,533  $   8,444,954  $   6,500,410
Cost of goods
 sold                3,558,069      2,340,027      6,035,747      4,522,272
                 -------------  -------------  -------------  -------------
Gross Profit         1,525,316        992,506      2,409,207      1,978,138
                 -------------  -------------  -------------  -------------

Expenses
 Sales and
  marketing            833,373        352,520      1,210,330        688,711
 Research and
  development          895,845        321,504      1,398,765        594,504
 General and
  administrative     1,194,593        693,593      1,972,227      1,383,984
 Share based
  compensation         149,304         14,728        866,453         40,226
 Amortization of
  technology
  rights               821,501              -        821,501              -
 Amortization          328,309        314,676        648,889        632,772
                 -------------  -------------  -------------  -------------
                     4,222,925      1,697,021      6,918,165      3,340,197
                 -------------  -------------  -------------  -------------

Loss from
 operations         (2,697,609)      (704,515)    (4,508,958)    (1,362,059)

Other expenses
 (income)
 Acquisition
  costs                402,309              -        402,309              -
 Interest expense       52,145        184,660         90,038        389,960
 Foreign exchange
  loss (gain)           83,730         (3,477)       148,929         (1,451)
                 -------------  -------------  -------------  -------------
                       538,184        181,183        641,276        388,509
                 -------------  -------------  -------------  -------------

Loss before
 income taxes       (3,235,793)      (885,698)    (5,150,234)    (1,750,568)

Future income
 taxes (recovery)            -       (261,290)             -       (513,101)
                 -------------  -------------  -------------  -------------

Net loss            (3,235,793)      (624,408)    (5,150,234)    (1,237,467)

Retained earnings
 (deficit),
 beginning of
 period            (16,342,201)       (27,796)   (14,427,760)       585,263
                 -------------  -------------  -------------  -------------

Retained deficit,
 end of period   $ (19,577,994) $    (652,204) $ (19,577,994) $    (652,204)
                 -------------  -------------  -------------  -------------
                 -------------  -------------  -------------  -------------

Loss per share
 for the period
 Basic           $       (0.07) $       (0.02) $       (0.11) $       (0.02)
 Diluted         $       (0.06) $       (0.02) $       (0.10) $       (0.02)
                 -------------  -------------  -------------  -------------

Weighted average
 number of shares
 - basic            48,656,806     27,454,035     48,395,799     30,213,794



                    Consolidated Statements of Cash Flows
                                 (Unaudited)

                           Three Months Ended              Six Months Ended
                                      June 30                       June 30
                            2010         2009           2010           2009
                    --------------------------------------------------------
Cash flows from
 operating
 activities:
Net loss for the
 period             $ (3,235,793) $  (624,408) $  (5,150,234) $  (1,237,467)
Adjustments to
 reconcile net
 earnings to net cash
 from operating
 activities:
 Amortization            328,309      314,676        648,889        632,772
 Amortization of
  deferred development
  costs                        -      321,504              -        594,504
 Amortization of
  technology rights      821,501            -        821,501              -
 Interest on
  capital leases          12,799       34,195         22,996         75,868
 Future income
  taxes (recovery)             -     (261,290)             -       (563,101)
 Stock based
  compensation           149,304       14,728        866,453         40,226
                    ------------- ------------ -------------- --------------
                      (1,923,880)    (200,595)    (2,790,395)      (407,198)
Changes in working
 capital assets and
 liabilities:
 Prepaid
  expenses                25,769       65,109       (327,169)        72,127
 Accounts
  receivable             858,312     (224,561)       313,168       (151,306)
 Accounts
  payable and accrued
  liabilities          3,713,843   (2,160,936)     1,693,643     (2,943,950)
 Inventories            (864,735)   3,087,098      1,106,538      5,012,080
                    ------------- ------------ -------------- --------------
Net cash flows
 from (used in)
 operating activities  1,809,309      566,114         (4,215)     1,581,753
                    ------------- ------------ -------------- --------------

Cash flows from
 investing activities
 Additions to
  property, plant and
  equipment             (462,467)     (84,871)      (542,739)      (114,190)
 Technology
  rights             (19,621,206)           -    (19,621,206)             -
 Deferred
  development expenses         -     (786,459)             -     (1,592,791)
                    ------------- ------------ -------------- --------------
Net cash flows
 used in investing
 activities          (20,083,673)    (871,330)   (20,163,945)    (1,706,981)
                    ------------- ------------ -------------- --------------

Cash flows from
 financing
 activities:
 Bank
  indebtedness                 -      240,729              -        372,630
 Proceeds from
  short term note
  payable                      -            -        164,500              -
 Repayment of
  short term note
  payable                      -   (2,000,000)             -     (2,000,000)
 Repayment of
  capital leases
  obligations           (140,238)    (327,906)      (349,815)      (635,075)
 Repayment of
  equipment loan          (4,720)      (4,720)        (9,440)        (9,440)
 Repayment of
  related party loan           -            -       (150,000)             -
 Shares issuable      14,691,862                  14,691,862
 Issuance of
  common shares        3,547,069    2,397,113      4,076,761      2,397,113
                    ------------- ------------ -------------- --------------
Net cash flows
 from financing
 activities           18,093,973      305,216     18,423,868        125,228
                    ------------- ------------ -------------- --------------

Net increase
 (decrease) in cash     (180,391)           -     (1,744,292)             -

Cash, beginning of
 period                  273,931            -      1,837,832              -
                    ------------- ------------ -------------- --------------

Cash, end of
 period                   93,540            -         93,540              -
                    ------------- ------------ -------------- --------------