[LBWR]: More than one year later - "Oops, sorry, but you can't have 95% of the $11.25 million that I said belonged to you"

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1. In the October 3, 2006 press release by Labwire, Inc. (LBWR) shown below, the company announced that it had entered into an agreement with a leading petrochemical company in the area of canine security valued at $2.25 million per year "for an initial term of 5 years". This amounts to $11.25 million in revenues for LBWR over the 5 year period.

2. Approximately 1 1/2 years later, on February 13, 2008, LBWR filed a form 10-SB with the SEC which stated, for the first time publicly, that LBWR only receives a 5% commission on the revenues of the canine security business and that the entity that receives the other 95% is owned 50% by the CEO of LBWR, Dexter Morris. What a surprise!

here is the LBWR 10-SB filed with the SEC

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and here is the language used in the SEC filing:

"Security Services. Labwire contracts with Labwire Security, Inc., which is one-half owned by Labwire’s Chairman and Chief Executive Officer, to perform security services. Labwire Security, Inc. is fully licensed with the State of Texas. "

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"ITEM 7. CERTAIN RELATIONSHIPS AND RELATED TRANSACTIONS AND DIRECTOR INDEPENDENCE

The Company outsources its K-9 security services to, Labwire Security, Inc., a company 50% owned by G. Dexter Morris, Labwire, Inc.’s Chairman of the Board and President. Labwire is paid a 5% commission for the K-9 security services that it refers to Labwire Security, Inc. The commissions received by the Company have been less than 1% of the Company’s gross revenues."

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3. Did Labwire, Inc. issue a false and misleading press release to the investment public with the intention of deceiving investors and stockholders that LBWR was going to receive $11.25 million in revenues under this agreement versus the actual amount, 5% of $11.25, or only $562,500 over 5 years?

4. Why did it take the company 1 1/2 years to announce that LBWR was receiving only 5% of these canine security revenues, and to compound the deception it turns out that the entity receiving 95% of these subtantial revenues is personally owned 50% by the CEO of LBWR, Dexter Morris.

5. What other material facts has the company and CEO Dexter Morris ommitted from telling its stockholders and the investor public? - For instance, are the 95% of total canine security revenues that are received by CEO Morris' other company included in the revenue section of the income statement filed with the SEC by LBWR? - more on this later.

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Here is the LBWR press release:

http://findarticles.com/p/articles/mi_pwwi/is_200610/ai_n16755952


Labwire Announces Additional Agreement With Leading Petrochemical Company Valued at up to $2.25 Million Annually

Labwire, Inc. (PINKSHEETS: LBWR), a leading provider of employee screening solutions and canine security and surveillance services, is pleased to announce that it has entered into a Blanket Services Agreement ("BSA") with a leading oil and natural gas producer, natural gas marketer, gasoline marketer, and petrochemical manufacturer (the "Petrochemical Company"). Under the terms of the BSA, Labwire will ensure site security to the Petrochemical Company's refinery, storage, and other facilities located throughout North America through the provision of: (i) day to day canine security and contraband (explosive and drug) detection services and (ii) canine and armed officer emergency and disaster response services. The BSA is valued at up to $2.25 million annually and is for an initial term of five years.

"We are extremely pleased to have been awarded this BSA with the Petrochemical Company," commented Mr. Dexter Morris, Chief Executive Officer of Labwire, Inc. "The BSA was earned by our company as a result of our experience and expertise in providing similar services to certain of Petrochemical Company's land-based facilities and to one of its oil and gas operating platforms located in the Gulf of Mexico following Hurricanes Katrina and Rita."

The Petrochemical Company operates refinery, production, storage, terminal, port, and corporate facility locations, which are covered under the BSA and for which Labwire may provide the above-described security and surveillance services. As part of the BSA, each facility determines for itself the need or desire to requisition a Labwire security team. As of the date of this release, Labwire is providing security and surveillance services to two of the Petrochemical Company's refinery and storage facilities.

About Labwire, Inc.

Labwire, Inc. is headquartered in Houston, Texas and provides secure and compliant employee drug screening and background checking services to Fortune 500 corporations via the Labwire(TM) Platform. Labwire(TM) is a proprietary, Web-based application that streamlines the complex regulatory and record management activities associated with employee screening, delivering accurate timely results while eliminating service calls and paper trails. This comprehensive solution to managing employee screening services is the most efficient and cost-effective platform in the industry. For additional information about Labwire, Inc., please visit www.labwire.com .

Forward-Looking Statements

This press release contains "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. Statements in this release that are forward-looking statements are based on current expectations and assumptions that are subject to known and unknown risks, uncertainties, or other factors which may cause actual results, performance, or achievements of the company to be materially different from any future results, performance, or achievements expressed or implied by such forward-looking statements. Actual results could differ materially because of factors such as the effect of general economic and market conditions, entry into markets with vigorous competition, market acceptance of new products and services, continued acceptance of existing products and services, technological shifts, and delays in product development and related product release schedules, any of which may cause revenues and income to fall short of anticipated levels. All information in this release is as of the date of this release. The company undertakes no duty to update any forward-looking statement to conform the statement to actual results or changes in the company's expectations.

Contact: S.D. Torrey Hills Capital, Inc. James Macdonald Investor Relations (858) 456-7300