Mr. Zach Mathews reports

WI2WI CORPORATION REPORTS SECOND QUARTER RESULTS

Wi2Wi Corp. has released its unaudited condensed consolidated interim financial results for the three- and six-month periods ending June 30, 2014. All currency figures are in thousands of United States dollars.

                                          STATEMENT OF RESULTS
                                        (in thousands of  dollars)

                                                                 Three months to                   Six months to       
                                                   June 30, 2014   June 30, 2013   June 30, 2014   June 30, 2013

Revenue                                                   $1,403          $1,324          $2,638          $2,577
Gross profit                                                 723             551           1,309           1,045
Operating expenses
Research and development                                     208             262             462             515
Selling, general and administrative                          460             958           1,197           2,495
Net income/(loss) before interest,
income taxes and share listing (expense)                      49           (669)           (350)         (4,952)
Net income/(loss) and total comprehensive (loss)              12           (699)           (404)         (5,009)
Net income/(loss) per share, basic and diluted             $0.00         $(0.01)         $(0.00)         $(0.06)

Wi2Wi designs, manufactures and markets miniaturized embedded wireless connectivity solutions (incorporating both hardware and software) for premium industrial/medical, smart-home/smart building and government markets worldwide. These products and value-added services provide highly integrated, multifunctional wireless subsystems for mobile applications of all forms for mobile devices.

Revenue

Revenues for the quarters ended June 30, 2014, and 2013 were $1,463 and $1,324, respectively. Revenues increased by 10 per cent for the quarter ended June 30, 2014, compared with the same period in 2013.

Revenue for the six-month ended June 30, 2014, and 2013 were $2,638 and $2,577, respectively. Revenues increased by 2.3 per cent for the six-month period ended June 30, 2014, compared with the same period in 2013.

The company has resumed product builds and shipments in the second quarter of 2014. The company had shippable backlog of approximately $2.9-million for the second quarter of 2014 a significant demand for its product. The company relies on its distribution network to sell its products, supported by the Wi2Wi sales managers and the sales representative network that has been established in North America, European Union and in Asia.

Gross profit

Cost of revenues consists of the costs of parts, costs incurred with contract manufacturers to assemble and test the company's products, as well as the direct and indirect costs incurred to control and test the outsourced manufacturing and supply chain.

Gross profits for the second quarter ended June 30, 2014, and 2013 were $746 (gross margin 51 per cent) and $551 (gross margin -- 41.6 per cent), respectively, an increase in gross profit of 34 per cent. Gross margins for the second quarter continue to improve.

Gross profits for the six-month period ended June 30, 2014, and 2013 were $1,332 (gross margin 50.4 per cent) and $1,045 (gross margin -- 40.55 per cent), respectively, an increase in gross profit of 27 per cent.

The increase in margin is due to the continued efforts on manufacturing yield improvements, optimizing manufacturing batch sizes, successful efforts in manufacturing cost reductions and retaining the ASP of the products

"In the second quarter, the company went through a restructuring of its operation and reduced its overheads, the full impact of which will be evident in the last six months of 2014," stated Zach Mathews, chief operating officer of the company. "With the licensing of one the products to our customer announced earlier this month, the company has additional working capital available for operations, and research and development program. The company will be introducing one to two new products in late fourth quarter of 2014 and four to five new products in 2015."

Wi2Wi also announces that it has entered into an agreement to issue shares to settle an amount of $79,950 owed to Red Cloud Mining Capital Inc. Wi2Wi will be issuing 444,171 common shares at a deemed price of 18 cents per share in settlement of the above-noted amount. The issuance of these common shares is subject to TSX Venture Exchange approval.

We seek Safe Harbor.