Xplore Technologies Corp. (OTCMarkets.com – XLRT), a manufacturer of award-winning rugged tablet PCs, today reported results for the first quarter of fiscal 2012. Revenue for the three months ended June 30, 2011 was $2,678,000 as compared to $5,078,000 for the three months ended June 30, 2010, a decrease of 47%. This decrease is attributable to the Company’s current transition to its newly-introduced product line, the iX104C5, which was introduced near the end of this first fiscal quarter.

“This current fiscal quarter and the one that ended on June 30, 2011 represent a transition period for Xplore as the roll out of our new iX104C5 line ramps-up,” said Mark Holleran, President and Chief Operating Officer of Xplore. “Enterprise sales have significantly longer sales cycles than consumer products. Now that our new line is available, we have been seeding a number of opportunities with existing and prospective customers and expect to see our sales return to historical levels in the coming quarters. We believe that the recent decrease in sales is attributable to the market wanting to wait for the new and improved line of products, instead of purchasing our iX104C4 line, which remains available as a robust and more affordable alternative. This was in line with our expectations and we were able to minimize the negative effects of the lower sales level through strong asset management that resulted in positive cash from operations.”

Total gross profit decreased by $1,072,000 to $573,000 (21.4% of revenue) for the three months ended June 30, 2011 from $1,645,000 (32.4% of revenue) for the three months ended June 30, 2010. The decrease in gross profit for the three months ended June 30, 2011 was due primarily to the decline in unit sales, as well as charges for obsolete inventory components of $59,000 and new product tooling amortization of $55,000, which were not included in the three months ended June 30, 2010.

The net loss for the quarter ended June 30, 2011 was $1,463,000 as compared to a net loss of $667,000 for the three months ended June 30, 2010, an increase of $796,000 due primarily to the decline in revenue.

Additional financial information regarding Xplore’s operating results for fiscal 2012 is available in the Company’s quarterly filing on Form 10-Q, filed with the Securities and Exchange Commission, which is available at www.sec.gov.

About Xplore Technologies®

Founded in 1996, Xplore Technologies ( www.xploretech.com) is a recognized pioneer and global leader in the rugged mobile computing industry. The Company engineers, manufactures, sells and supports rugged mobile, wireless tablet computing systems, its sole focus and dedication. Their systems are used globally by some of the industry’s toughest customers, in the harshest working conditions. The Company’s products enable the extension of traditional computing systems to a range of field and on-site personnel, enabling end-users to receive, collect, analyze, manipulate and transmit information in a variety of environments not suited to traditional non-rugged computing devices. The Company’s end-users are in markets that include utility, warehousing/logistics, public safety, field service, transportation, manufacturing, route delivery, military and homeland security, among others.

Xplore Technologies, Xtreme Tablet, iX104C5, DMSR, iX104C5 DM, iX104C5 DML, iX104C5 M, iX104C5 DMCR, AllVue Xtreme are trademarks or registered trademarks of Xplore Technologies Corporation. Windows 7 is a registered trademark of Microsoft Corporation and Intel and Core i7 are registered trademarks of Intel Corporation.

This news release contains forward-looking statements that involve risks and uncertainties, which may cause actual results to differ materially from the statements made. When used in this document, the words “may”, “would”, “could”, “will”, “intend”, “plan”, “anticipate”, “believe”, “estimate”, “expect” and similar expressions are intended to identify forward-looking statements. Such statements reflect Xplore’s current views with respect to future events and are subject to such risks and uncertainties. Many factors could cause actual results to differ materially from the statements made including those factors detailed from time to time in filings made by Xplore with securities regulatory authorities. Should one or more of these risks or uncertainties materialize, or should assumptions underlying the forward looking statements prove incorrect, actual results may vary materially from those described herein as intended, planned, anticipated or expected. Xplore does not intend and does not assume any obligation to update these forward looking statements.

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