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    LBAS Inks $1.2 Million Deal

    Location Based Technologies Inc. (OTCBB: LBAS) hit the newswire today with an announcement that holds the potential to drive profitable revenue growth for the company going forward by unlocking a massive application market outside the traditional realm of its PocketFinder® offering.

    LBAS recently inked a $1.2M professional service contract with LoadRack.com, LLC – a leading technology solution provider to the trucking & freight monitoring industry – to integrate its PocketFinder® network with the new LoadRack™ real-time location system.

    According to today’s press, the new partners feel strongly that the unparalleled visibility afforded by their solution will revolutionize the trucking industry and also help generate upwards of $12.5M for LBAS over the next year.

    Efficiency is the name of the game

    Efficiency is the name of the game in the trucking industry and achieving it is made more difficult by the day. Exorbitant diesel prices and a wounded economy have been forcing drivers off the road since last summer. A shortage of qualified drivers mixed with government regulations focussed on reducing emissions and limiting the number of hours that drivers can work also hurts the cause. Throw traffic congestion and a lack of new technologies into the mix and you’re looking at a pretty ugly situation.

    “Smart Solutions” can help

    A “smart” real-time tracking solution cable of re-routing shipments, managing time delays, and maximizing fuel efficiency while minimizing emissions by remotely monitoring travel speed in real-time, presents a very compelling value proposition to the trucking/freight industry. With the American Trucking Industry estimating that the industry spent roughly $150 billion on diesel fuel in 2008, up from $112 billion in 2007, a product such as the one being developed by LoadRack has perhaps never been so timely.

    The partnership is quite promising for LBAS for a number of reasons.

    First and foremost, MONEY: the deal is worth $1.2M up front and is expected to help boost sales into the $13M range a year from the solution’s launch. Second, it reflects the versatility and value of its core technology and allows the company to spread its wings into an extremely lucrative vertical market with pretty much zero resource expenditure. LoadRack has established a favorable position in the industry and is willing to do all of the heavy lifting.

    In addition to the enormous smart phone application software and personal location GPS markets, LBAS is now positioning its offering to take a piece of yet another massive opportunity. Given the nature of its core technology, the diversification likely won’t stop here.

    For a company just getting its start, today’s announcement is quite promising. Only time will tell if all the good news coming out of the company will translate into financial gains and success in the markets, but LBAS certainly appears to be off to a great start.

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