TORONTO, Nov. 23 /CNW/ - Route1, Inc.(TM) (TSX-V:ROI), a market leader in providing secure, identity-managed remote computing solutions, today announced its third quarter financial results for the period ended September 30, 2006. The Company has placed a total of 4,229 MobiKEYs with end-user customers, prospects and the sales channel this calendar year-to-date. Sales for the Third Quarter were 1,462 MobiKEYs, 142% of unit sales in the previous quarter, resulting in a total number of subscribers of 2,723. The Company also had, at quarter end, 1,506 additional MobiKEYs placed on consignment or with potential customers on a trial basis; of which, and important for the long term success of the Company, 1,192 new trial or consignment MobiKEYs were placed this quarter with customers and the sales channel. The Company had revenues of $248,470 for the quarter ended September 30, 2006. Deferred revenues which reflect the sales of future MobiNET services increased to $292,781. The Company's losses from operations were $2,201,467 or $0.01 per share for the same period. Current assets were $5,069,622 which included $3,394,722 in cash, cash equivalents and short term investments. Current liabilities were $1,267,785. The Company had 241,707,616 common shares outstanding as at September 30, 2006. For the complete financial statements please visit www.sedar.com. Late in the third quarter, the Company implemented an aggressive sales and marketing initiative to place more trial MobiKEYs with key potential customers, providing the opportunity to try the device for a limited period of time prior to purchasing it. "Our past experience has shown that once a customer uses MobiKEY very few want to give it back," said Mike Larkin, Senior Vice President of Worldwide Sales. "In fact, the trials have typically led to a much larger sale. This program supports the early signs that this trend is continuing and a number of sales in the fourth quarter are a direct result of these trials." "During the third quarter, which included the typically slow summer months, we experienced continued growth and market acceptance of MobiKEY," said Andrew White, CEO of Route1. "Along with our recently completed private placement and the anticipation of 'MAP', the MobiNET Administrative and Provisioning portal, we are well positioned with certain large customers and a strong base of prospective customers. We are confident that the growth of MobiKEY unit sales should continue strongly." 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, SVP Worldwide Sales will lead a presentation and answer questions about the Company's progress. Investors and analysts are invited to call 416-644-3414 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. At the heart of Route1's solution is MobiNET, a service delivery platform for identity management. MobiNET works in tandem with the MobiKEY, an ultra-portable computing device that connects users to their desktop data, applications and network resources from any Internet-enabled Windows-based PC. Route1's patent-pending solutions meet the stringent security needs and high standards mandated by all levels of government, and have been FIPS 140-2 validated and certified by ICSA Labs and the CSE. As a Company with high regard for intellectual property, Route1 continues to encourage and nurture innovation across its talented team. 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.