May 12, 2003

News Release: Record Third Quarter Revenue: 16.3 Million in Year-to-Date Revenue

Versatile Mobile Systems (Canada) Inc., a leading mobile commerce solutions provider, announced its results for the nine-months ended March 31, 2003.

Revenue for the nine months ended March 31, 2003 was $16,301,038 compared to $12,714,721 for the same period last year. The loss for the nine month period was $1,966,813 ($0.02 per share) compared to a loss of $15,615,969 ($0.20 per share) in the same period last year which included a loss from discontinued operations of $10,230,313. Amortization of goodwill and intangible assets for the nine months ended March 31, 2003 was $191,790 compared to $3,785,469 for the same period last year, as a result of adopting the new CICA Handbook sections on July 1, 2002, which no longer require the amortization of goodwill or intangible assets with an indefinite life. Revenue for the quarter ended March 31, 2003 was $7,710,548 compared to $5,556,879 for the same quarter last year. The loss for the quarter was $116,617 ($0.00 per share) compared to a loss of $10,997,354 ($0.15 per share) in the same quarter last year which included a loss from discontinued operations of $9,735,267. Amortization of goodwill and

intangible assets for the quarter ended March 31, 2003 was $62,229 compared to $1,212,806 for the quarter last year, as a result of adopting the new CICA Handbook sections on July 1, 2002.

For the quarter ended March 31, 2003, the EBITDA loss (loss before interest expense, taxes, depreciation, amortization and goodwill write-down) was $38,337 compared to an EBITDA loss of $139,389 for the same quarter last year, which included an EBITDA loss from discontinued operations of $270,466. For the nine-month period ended March 31, 2003, the EBITDA loss was $1,653,899 compared to an EBITDA loss of $2,423,707 for the same period last year, which included an EBITDA loss from discontinued operations of $733,314. These EBITDA amounts are provided by management as a complement to the financial results reported in accordance with GAAP in order to provide investors additional information concerning the company's use of cash in its operations.

Revenue increased 28% over the comparable nine-month period last year as a result of completing a significant amount of projects during the quarter.

Cost of sales for the nine-month period ended March 31, 2003 was $11,592,338 or 71% of sales as compared to $6,474,504 or 51% of sales in the same period last year. Cost of sales for the quarter was $5,587,276 or 72% of sales as compared to $2,322,035 or 42% of sales in the same quarter last year. The increase in the cost of sales percentage compared to last year can be attributed to the fact that sales in the current year were primarily related to lower margin hardware and systems integration services. Further there has been an increase in competitive pressure in our market resulting in lower than expected gross margins. Also, in the quarter ended March 31, 2003, the Company had substantially completed the implementation of a new inventory management system as well as an extensive review of its inventory and recorded an inventory provision of $134,600, which is included in cost of sales.

General and administrative costs were $2,703,177 for the nine-month period ended March 31, 2003 as compared to $2,611,781 for the same period last year. General and administrative costs were $996,369 for the quarter as compared to $930,347 for the same quarter last year. Salary costs were higher in the nine-month period due to the appointment of a new President in October 2002 and non-recurring termination costs relating to staff reductions.

Research and development costs were $1,422,535 for the nine-month period ended March 31, 2003 as compared to $2,564,315 for the same period last year. Research and development costs were $228,196 for the quarter as compared to $1,105,579 for the same quarter last year. The level of in house activity in research and development continued to decline this quarter as the Company focuses its resources on marketing its completed products and solutions. Staffing levels and consultants were reduced in the first quarter of the fiscal year. The company will monitor these costs and will continue to ensure that the cost structure is aligned with revenues and gross margins.

Selling and marketing costs for the nine-month period ended March 31, 2003 were $2,251,413 compared to $2,681,423 for the same period last year. Selling and marketing costs for the quarter were $951,570 compared to $925,902 for the same quarter last year. The decrease in the nine-month period is attributable to staff reductions, in addition to lower travel, advertising and promotion costs. The company will monitor these costs and will continue to ensure that the cost structure is aligned with revenues and gross margins.

Cash and cash equivalents and marketable securities at March 31, 2003 amounted to $1,668,937 representing an increase of $656,293 over the balance of $ 1,012,644 at the end of the previous quarter on December 31, 2002. Working capital at March 31, 2003 was $2,079,345 compared to $2,318,330 at December 31, 2002 and $3,961,949 at June 30, 2002. The ability of the Company to continue operations on an ongoing basis and obtain profitability will be dependent on its ability to generate sales, maintain its margins and control operating expenses. The company has cash and cash equivalents and accounts receivable sufficient for the company to meet its current obligations as they become due.

'We are beginning to experience the positive effects of the previous measures taken to reduce costs and improve operating efficiencies,'said John Hardy, Chairman and CEO of Versatile Mobile Systems. 'We are also beginning to note increased activity and interest with respect to our solutions and product set.'

About Versatile Mobile Systems

Versatile Mobile Systems provides mobile business solutions that enable companies to improve sales, marketing and distribution of their products. By using Versatile Mobile Systems'technology, companies in the consumer packaged goods, and transportation industries gain the benefits of supply chain visibility, shortened fulfillment cycles and improved customer satisfaction. Versatile Mobile Systems'international customer list includes Cadbury Schweppes, Elizabeth Arden, Ocado, Nordstrom Inc., Publix Supermarkets Inc., K&L Distributors, Bridgford, Rug Doctor, Keebler, and Books Are Fun Ltd., a division of the Reader's Digest Association. Additional information is available at www.versatilemobile.com.

Forward-Looking Statements

This Press Release may contain forward-looking statements relating to Versatile Mobile Systems'('the Company') operations or to the environment in which it operates, which are based on the Company's operations, estimates, forecasts and projections. These statements are not guarantees of future performance and involve risks and uncertainties that are difficult to predict or are beyond the Company's control. A number of important factors including those set forth in other public filings could cause actual outcomes and results to differ materially from those expressed in these forward looking statements. Consequently readers should not place any undue reliance on such forward-looking statements. In addition, these forward looking statements relate to the date on which they are made. The Company disclaims any intention or obligation to update or revise any forward-looking statements whether as a result of new information, future events or otherwise.

(C) 2003 Versatile Mobile Systems (Canada) Inc. All rights reserved.

CONTACT: TEL: (604) 683-2915 Versatile Mobile Systems (Canada) Inc.

FAX: (604) 683-2965 John Hardy, Chairman and CEO

TEL: (604) 683-2915 Versatile Mobile Systems (Canada) Inc.

FAX: (604) 683-2965 Fraser Atkinson, CFO, ext: 214

Website: www.versatilemobile.com

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