Intelligent PDG CEO Comments on Amended Master Distribution Agreement
April 27 2010 - 8:30AM
Marketwired
Visual Management Systems, Inc. (OTCBB: VMSY), a leading developer,
manufacturer and provider of video surveillance technologies, is
pleased to announce that its subsidiary, Intelligent Product
Development Group, LLC (iPDG), has amended the March 9, 2010 Master
Distribution Agreement with VMS Dealer Group, increasing the
quarterly sales order obligations to iPDG to $1 million and
expanding exclusivity to VMS Dealer Group, as filed on form 8-K
with the Securities and Exchange Commission (SEC) on April 23,
2010.
"Over the past few months, we have made substantial progress in
the sales of our iPDG product lines through the VMS Dealer Group.
We went on the road with their sales force, participated in sales
opportunities and fulfilled orders together. It makes sense to
expand on our agreement given the momentum we have developed
together," stated Jason Gonzalez, CEO of Visual Management
Systems.
Millard P. Dumesnil III, President of VMS Dealer Group
commented, "We immediately recognized the potential when we entered
the original agreement with iPDG. The company has technology
solutions that are needed in today's marketplace and the
flexibility to show that they can continue to deliver products to
meet changing needs." He added, "Now, we are seeing momentum among
our resellers. We're very excited about the future."
Terms of the new agreement grant VMS Dealer Group an exclusive
right to market iPDG's products throughout the United States. In
consideration for entering into the amendment, the quarterly
minimum purchase VMS Dealer Group is obligated to place with iPDG
was increased from $750,000 to $1,000,000 and VMS Dealer Group
agreed to place orders with iPDG of no less than $2,000,000, at
least $300,000 of which would be made upon execution, the remainder
to be paid for in no more than 180 days following the execution
date of the Amended Agreement. This $2,000,000 order shall satisfy
the first two quarters of the Amended Agreement's quarterly minimum
purchase requirement. Details of the amended agreement can be found
in the 8K filing with the SEC at:
http://sec.gov/Archives/edgar/data/1284453/000108935510000016/0001089355-10-000016-index.htm
As part of the Agreement all existing Visual Management Systems
customer relationships (or those of its subsidiaries and
affiliates) are exempted from exclusivity. iPDG retains the right
to sell to those customers at its sole discretion. Gonzalez
concluded by saying, "VMS Dealer Group is proving to be an
excellent partner. They are confident enough in their network to
warrant a national agreement, but insightful enough to allow us to
maintain our existing business and not upset deal flow that we have
invested years in. This is a huge step for us."
About Visual Management Systems, Inc. and Intelligent Product
Development Group Visual Management Systems, Inc. and its
subsidiaries Intelligent Product Development Group, LLC and Visual
Management Systems, LLC are committed to developing and
implementing industry-leading video security technology at
affordable price points. For more information, visit
www.intelligentpdg.com or call 877-323-CCTV.
About VMS Dealer Group, LLC
VMS Dealer Group, LLC is headquartered in Lafayette, LA. The
company is a national distribution and logistics firm specializing
in delivering OEM technologies to the security and surveillance
market. For corporate or sales inquiries, contact Robert Russell of
VMS Dealer Group at 228-229-5335.
Safe Harbor Statement under the Private Securities Litigation
Reform Act of 1995
Certain statements in this press release constitute
'forward-looking statements' within the meaning of the Private
Securities Litigation Reform Act of 1995. Such forward-looking
statements involve known and unknown risks, uncertainties and other
factors which may cause the actual results, performance or
achievements of the company to be materially different from any
future results, performances or achievements express or implied by
such forward-looking statements. The forward-looking statements are
subject to risks and uncertainties including, without limitation,
changes in levels of competition, possible loss of customers, the
company's ability to attract and retain key personnel, the
company's ability to raise capital, the continued cooperation of
creditors and vendors, national and local economic conditions, the
ability of the company to reach agreements with the proposed
distributor, joint venture and integration partners discussed in
this release, conditions and trends in the video surveillance and
security industries in general, the ability of the company to
attract enterprise-scale customers, changes in interest rates,
commercial acceptance of the company's products, the effect of
government regulation on the company's operations and other factors
described from time to time in the company's filings with the
Securities and Exchange Commission.
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Jason Gonzalez 732.281.1355