TORONTO, May 23 /CNW/ - Route1, Inc. (TSXV:ROI) reports its first quarter financial results for the period ended March 31, 2006. The Company had revenues of $127,070 for the quarter ended March 31, 2006. These revenues reflect the first full quarter of sales of the MobiKEY into some key early stage accounts plus some final sales of the MobiBook Pro. The Company's losses from operations were $1,445,664 or $0.01 per share for the same period. Current assets were $4,337,931 which included $3,627,441 in cash and cash equivalents and short term investments. Current liabilities were $714,564. For the complete financial statements please visit www.sedar.com. "The results of the first full quarter since the release of MobiKEY are reflective of the early selling stage of the Company. We are getting our MobiKEY out into the hands of customers and users who are very quickly becoming advocates of our product." said Andrew White, CEO, Route1. "MobiNET clearly differentiates us by delivering secure identity management. MobiNET and MobiKEY work together to provide the most powerful and easy-to-use secure remote computing solution to support emergency preparedness/disaster recovery, business continuity and regulatory/corporate compliance needs." Teleconference Webcast The Company will host an investor teleconference webcast today at 4:30 pm EST. Andrew White, CEO, and John Denham, CFO, will lead a presentation and answer questions about the Company's progress. Investors and analysts are invited to call 416-644-3415 or visit http://www.route1.com/investors/investor_webcasts.htm at least 5 minutes prior to the start of the call. The audio webcast will be archived and available for replay for 90 days. Annual Meeting Route1 will hold its Annual and Special Meeting of Shareholders on June 15, 2006, 11:00 am EST, at the Hilton Toronto Hotel, 145 Richmond Street West, Toronto. About Route1, Inc. Route1's innovative remote access solution transforms the way people work. The MobiKEY is a unique remote computing solution embedded on a Smart Card-enabled USB device. With Route1's MobiKEY, communication between the remote computer and the host computer is initiated from inside the corporate firewall out to the remote device. This inside out approach eliminates the possibility of unauthorized access through the organization's firewall. In addition, since no applications or data reside on the remote devices, organizations can assure compliance with privacy, security and governance regulations. The MobiKEY is integrated with Route1's core delivery platform - MobiNET(TM) - which is a highly secure, global managed service that manages users' identity, and the services which they are authorized to access. The Company is listed on the TSX Venture Exchange (symbol: ROI) with offices in Toronto, New York, California, and Florida. For more information, visit www.route1.com. This news release does not constitute an offer to sell or a solicitation of an offer to buy any of the securities in the United States. The securities have not been and will not be registered under the United States Securities Act of 1933, as amended (the "U.S. Securities Act") or any state securities laws and may not be offered or sold within the United States or to U.S. Persons unless registered under the U.S. Securities Act and applicable state securities laws or an exemption from such registration is available. %SEDAR: 00008444E