Grayling Wireless

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Press Release 2006/12/12

Grayling Updates Operations and Provides ’07 Outlook

CALGARY, AB - (December 12, 2006) - Grayling Wireless USA, Inc. (Pink Sheets: GRYW) today updated current operations and provided an outlook for 2007.

“During 2006 we have achieved our regulatory compliance milestones for ClearCalm, have moved into production and acquired a complimentary radio communications company, Stone Mountain, Ltd. which sells rugged land mobile radio accessories” noted Jeff Love CEO of Grayling Wireless USA, Inc. Mr. Love continued to describe each of the three distinct operating divisions and the upcoming ’07 outlook.

Radio Communications Division

Our first deliveries of ClearCalm™ Advantage-S have occurred and we are continuing to receive purchase orders. We continue to receive favorable feedback from our test sites, which include a large Western United States fire department who notes that since receiving the initial training, we have deployed the system at a number of training session’s as well as live calls. The systems are currently deployed on front line HazMat apparatus and will remain in trial for a number of months. This is encouraging as many of our test sites are using the product prior to purchase.

Stone Mountain is poised to close out the calendar year in very good condition; as of November 30, 2006 sales are up 20% year-over-year. We are also in preparation to offer our ClearCalm™ Advantage product for sale via the existing Stone Mountain dealer network.

GPS Communications Division

Our team in Botswana is busy installing and testing our fleet management offering and has reported very significant interest. It is our intention to use the successful launch into our African market as our stepping stone for North America.

Software Division

Sentai has completed the first phase of a large software roll out for one of our largest customers. Based in Miami, Florida our customer is a major distributor of computer and electronics products into Central and South America and have our TRAX and Pinpoint software in their Miami warehouse. Our TRAX software has also been rolled out to their operations in Columbia, Costa Rica, El Salvador, Guatemala, Jamaica and Panama. Sentai will continue TRAX installations in Argentina, Ecuador and Uruguay in 2007. The number of current users of our software for this installation is approximately 450, however upon completion the number will rise to approximately 900 throughout our customer’s locations. While we are pleased to report on this major milestone, it is ‘business as usual’ with ongoing support to our current customer base. Sentai has a reputation for being well connected to our customers from the ‘go live’ to the ‘day to day’ operations of the business using our software. We are also busy working on new modules which include CRM and Compass e-Commerce enhancements. As well, preparations are under way for our popular and well attended Users Conference it is at this venue that many of the past upgrade and feature results are unveiled.

“Many important milestones were achieved in 2006 and the intrinsic value of our underlying economic opportunities has never been more evident. Our fiscal year ’07 is underway and holds the promise of an even more exciting year for Grayling. This year will see the promise of our foundation building begin to be realized through achieving sustainable revenue and earnings across all operating divisions.” offered Jeff Love, CEO of Grayling Wireless USA, Inc.

About GRYW:

Grayling, based in Calgary, Alberta, is an innovator and integrator of emerging technologies. Our goal is to seek out and evaluate growth opportunities, including mergers and acquisitions that add incremental shareholder value, extend the company’s market share and add to its technical competencies. Grayling will continue to bring market-ready technologies and services to its markets. For further information, visit www.gryw.com

For further information on:
ClearCalm™, visit www.clearcalm.com
Stone Mountain, visit www.stonemountainltd.com
Sentai, visit www.sentai.com

For further information contact:

Jeff Love,
Chief Executive Officer
Grayling Wireless USA Inc.
Phone: 403.250.8965
Email: jeff.love@gryw.com

This press release contains forward-looking statements within the definition of section 27A of the Securities Act of 1933, as amended, and section 21E of the Securities Act of 1934, amended. These forward-looking statements should not be used to make an investment decision.

Our Divisions
ClearCalm | Sentai Software | Stone Mountain