XATA Xrs Corporation (MM)

Funds will strengthen the balance sheet to support continued growth MINNEAPOLIS, Feb. 13 /PRNewswire-FirstCall/ -- XATA Corporation (NASDAQ:XATA), a leader in fleet optimization software and services, announced today that it has received approximately $3.1 million in investment from Trident Capital Management and Weber Capital Management through a private placement of shares of its newly created convertible Series E Preferred Stock and Warrants to purchase XATA Common Stock. The shares of Preferred Stock are currently convertible into an aggregate of 1,355,587 shares of Common Stock. XATA also issued warrants that are currently exercisable for an aggregate of 406,759 shares of Common Stock at an exercise price of $2.22 per share. The warrants expire seven years from the date of issuance. Both Trident and Weber are existing investors in the Company with approximately 38% and 4% ownership, respectively. The funding will be used by XATA to strengthen the Company's balance sheet by increasing operating cash to support continued growth of their industry- leading XATANET(TM) Software as a Service (SaaS) platform and repaying the seller notes incurred in the acquisition of Geologic Solutions, Inc. of $1.75 million. For the last three years, XATANET subscriptions revenue has increased in excess of 40 percent year-over-year, with the first quarter of fiscal 2009 delivering a 68 percent year-over-year improvement. "In the past year, XATA has made considerable progress within its industry to significantly expand its market share and prove out its business model as a subscription-based service," stated Don Dixon at Trident Capital Management. "We're excited by the company's strong growth in what is a very difficult economic climate." "We continue to view XATA as a strong leader in fleet optimization for the trucking industry," said Gene Weber at Weber Capital Management. "We believe XATA has the management team, products and services in place to make them a formidable player within the industry." Trident purchased 1,013,514 of the shares issued and Weber Capital purchased 315,315 shares and XATA management the remainder. The securities sold in the private placement have not been registered under the Securities Act of 1933, as amended, and may not be offered or sold in the United States in the absence of an effective registration statement or exemption from registration requirements. However, as part of the transaction, the Company granted certain registration rights to the purchasers for purposes of registering the resale of the shares of Common Stock issuable upon conversion of the Preferred Stock and upon exercise of the Warrants issued in the private placement. This release shall not constitute an offer to sell or the solicitation of an offer to buy, nor shall there be any sale of these securities in any state in which such offer, solicitation or sale would be unlawful prior to the registration or qualification under the securities laws of any such state. Any offering of the Company's securities under the resale registration statement will be made only by means of a prospectus. About XATA Based in Minneapolis, MN, XATA Corporation (NASDAQ:XATA) is an expert in optimizing fleet operations by reducing costs and ensuring regulatory compliance for the trucking industry. Our customers have access to vehicle data anywhere, anytime, through XATANET, our fee-based subscription service. Our software and professional services help companies manage fleet operations, enhance driver safety and deliver a higher level of customer satisfaction. XATA provides expert services to develop the business processes required to deliver the profitability, safety and service level demanded by today's competitive transportation environments. Today, XATA systems increase the productivity of approximately 66,000 trucks across North America. For more information, visit http://www.xata.com/ or call 1-800-745-9282. Cautionary note regarding forward-looking statements. This announcement includes forward-looking statements. Statements that are not historical or current facts, including statements about beliefs and expectations, are forward-looking statements. Such statements are based on current expectations, and actual results may differ materially. The forward- looking statements in this announcement are subject to a number of risks and uncertainties including, but not limited to, the possibility of continuing operating losses, the ability to adapt to rapid technological change, cost and difficulties we may face in integrating the businesses of XATA and GeoLogic Solutions, dependence on positioning systems and communication networks owned and controlled by others, the receipt and fulfillment of new orders for current products, the timely introduction and market acceptance of new products, the ability to fund future research and development activities, the ability to establish and maintain strategic partner relationships, and the other factors discussed under "Risk Factors" in Part IA, Item 1 of our Annual Report on Form 10-K for the fiscal year ended September 30, 2008 (as updated in our subsequent reports filed with the SEC). These reports are available under the "Investors" section of our Web site at http://www.xata.com/ and through the SEC Web site at http://www.sec.gov/. Forward-looking statements speak only as of the date they are made, and we undertake no obligation to update them in light of new information or future events. DATASOURCE: XATA Corporation CONTACT: Mark Ties, CFO of XATA Corporation, +1-952-707-5600, Web site: http://www.xata.com/

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