TORONTO, Aug. 24 /CNW/ - Route1, Inc.(TM) (TSX-V:ROI), a market leader in providing secure, identity-managed remote computing solutions, today announced its second quarter financial results for the period ended June 30, 2006. The Company sold 1,025 MobiKEYs in the second quarter, an increase of 533% over the previous quarter, resulting in a total number of subscribers of 1,261. The Company also had 383 additional MobiKEYs placed with potential customers on a trial basis. The Company had revenues of $153,746 for the quarter ended March 31, 2006. Deferred revenues, which reflect the cash received for the sales of future MobiNET services increased to $172,793. The Company's losses from operations were $2,409,530 or $0.01 per share for the same period. Current assets were $2,194,848 which included $1,520,129 in cash, cash equivalents and short term investments. Current liabilities were $972,678. The Company had 176,397,999 common shares outstanding as at June 30, 2006. For the complete financial statements please visit www.sedar.com. "The results of the second full quarter since the release of MobiKEY validates the Company's go-to-market strategy and are reflective of this early selling stage", said Andrew White, CEO, Route1. "A number of the units sold in the second quarter were within large corporate accounts with the anticipation of significant growth to the MobiNET subscriber base. As we continue to grow our sales and distribution channels and gain exposure into more and more accounts, it is evident that MobiKEY, powered by MobiNET, gives Route1 a clear competitive advantage. By providing secure identity management, MobiKEY delivers more than an easy-to-use remote computing solution; it supports 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, John Denham, CFO and Mike Larkin, VP Sales will lead a presentation and answer questions about the Company's progress. Investors and analysts are invited to call 416-644-3421 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. About Route1, Inc. Route1 is a trusted provider of secure, identity-managed computing solutions that redefine the way people work. Route1's technology empowers the workforce to securely extend access to their digital world, including data, applications and network resources from beyond the boundaries of the workplace. At the heart of Route1's solution is MobiNET, a service delivery platform for secure identity management. MobiNET works in tandem with the MobiKEY, an ultra-portable computing device that securely connects users to their desktop and network resources from any Internet-enabled Windows-based PC. Headquartered in Toronto, Route1 is listed on the TSX Venture Exchange (symbol: ROI) and has offices and agents in New York, California, Florida, the UK, Germany, and Latin America. 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. The TSX Venture Exchange has not reviewed or approved the contents of this press release and does not accept responsibility for its adequacy or accuracy. (C) Route1 Inc. All rights reserved. Route1, the Route1 Logo, Mobi, MobiSecure, Route1 MobiKEY, and Route1 MobiNET are either registered Trademarks or Trademarks of Route1 Inc. in the United States and or Canada. All other trademarks and trade names are the property of their respective owners. %SEDAR: 00008444E