WebTech Wireless Inc. (TSX: WEW) ("WebTech Wireless") and Grey
Island Systems International Inc. (TSX VENTURE: GIS) ("Grey
Island") announce that they have made significant and early
progress identifying opportunities for both companies within each
others' sales pipelines, as well as additional cost savings and
efficiencies to be realized post integration.
As first announced, the integrated company is forecasting:
- Pro-forma calendar 2009 run rate revenue of $50 million
- Sustainable 2010 organic growth based on existing contract
backlogs
- Combined recurring revenue approaching $6 million per quarter
in 2010
- Profitability in 2010
- A minimum of $1 million in operational savings - from savings
on Grey Island public company costs, R&D synergies, and other
back-office costs.
Since the first announcement, the integrated company is now
predicted to:
- Reduce procurement costs and overall cost of sales in 2010 by
$1 million or more - improving combined gross profit margins
- Achieve an additional $1 million in savings in 2010 by
bringing certain outsourced manufacturing in-house - further
improving margins
- Redeploying development efforts, assigning overlapping
resources to new product development and incremental business
opportunities.
Finally, early analysis of each company's sales pipeline has
identified several cross-selling opportunities to further enhance
the organic growth opportunities of both companies:
- A provisional sale of 160 Grey Island units to a WebTech
Wireless customer in Kuwait
- Extension of an existing Grey Island solution for a major
multinational's Canadian operation to its Middle Eastern unit,
leveraging WebTech Wireless' expertise in this market.
- Identification of four Middle East opportunities for Grey
Island's NextBus solution
- Grey Island's snow plow solution will be introduced to WebTech
Wireless customers soon after integration is complete
- Grey Island will introduce WebTech Wireless' flagship product,
the WT5000 Locator(TM), to a number of its municipal customers
looking for fleet-wide GPS coverage.
Anwar Sukkarie, President & Chief Executive Officer of
WebTech Wireless, said, "Though we are still in the early stages of
planning our integration, we are thrilled to confirm that the
synergies we believed existed, actually do. Grey Island's product
mix will knit together beautifully with our own products and
product roadmap. As important, is the discovery of tremendous
potential among our prospect and existing customer lists. I'm
looking forward to travelling with Owen to Europe and the Middle
East as soon as this deal is closed to begin consolidating these
sales."
Owen Moore, President of Grey Island, said, "Now that the
uncertainty clouding this transaction has been removed, we're very
excited about making good on the opportunities it presents. Our
sales force is anxious to start co-selling the WebTech Wireless
solution, and our customers are already talking about installing a
top-to-bottom solution that can deal with everything from simple
'track & trace' to sophisticated, integrated fleet and asset
management systems including regulatory compliance abilities."
The progress seen thus far underscores WebTech Wireless and Grey
Island's commitment to this agreement - and the provision of
integrated and custom made solutions for a variety of organizations
that depend on efficient and effective mobile resource
management.
About WebTech Wireless Inc.
WebTech Wireless Inc. (TSX: WEW) is a global telematics and
location-based services provider that develops, manufactures and
delivers end-to-end wireless solutions designed to improve the
productivity, profitability and safety of vehicle fleets. WebTech
Wireless products and services run on GPS and cellular networks and
provide Automatic Vehicle Location, Mapping, Reporting, Vehicle
Diagnostics, Driver Status, In-vehicle Telemetry and Navigation and
Messaging. The Company delivers products and services in over
forty-one countries to a variety of small, medium and Fortune 500
companies, with a particular focus on the transport, service
delivery, government and automotive markets. For more information,
please visit www.webtechwireless.com.
About Grey Island Systems International Inc.
Grey Island Systems International Inc. (TSX VENTURE: GIS),
through its subsidiaries NextBus Inc. in Alameda, California,
InterFleet, Inc. in New York, New York and Grey Island Systems in
Toronto, Canada, is a leading provider of custom real-time GPS/AVL,
security and Telematics solutions as well as real-time passenger
information systems to government and related fleets. To find out
more about our products and services, visit our websites at:
www.interfleet.com or www.nextbus.com.
Forward-looking Statements
This press release contains "forward-looking statements" within
the meaning of applicable Canadian and United States securities
laws. Generally, forward-looking statements can be identified by
the use of the forward-looking terminology such as "plans",
"expects" or "does not expect", "is expected", "budget",
"scheduled", "estimates", "forecasts", "intends", "anticipates" or
"does not anticipate", or "believes", or variations of such words
and phrases or state that certain actions, events or results "may",
"could", "would", "might" or "will be taken", "occur" or "be
achieved". Assumptions upon which such forward-looking statements
are based include that WebTech Wireless and Grey Island will be
able to satisfy the conditions in the definitive agreement, that no
materially adverse facts or circumstances will be identified, that
the required approvals will be obtained from the shareholders of
Grey Island, that all third party regulatory and governmental
approvals to the Transaction will be obtained and all other
conditions to the completion of the Transaction will be satisfied
or waived. Many of these assumptions are based on factors and
events that are not within the control of WebTech Wireless and Grey
Island and there is no assurance they will prove to be correct.
Forward-looking statements are subject to known and unknown risks,
uncertainties and other factors that may cause the actual results,
performance or achievements of WebTech Wireless and Grey Island to
be materially different from those expressed or implied by such
forward-looking statements, including but not limited to: risks
related to product plans, timing, content, and pricing of products,
market and industry expectations, the wireless communications
industry, the mobile fleet industry, and general economic and
political conditions, as well as those factors discussed in the
section entitled "Description of the Business - Risk Factors" in
WebTech Wireless' annual information form for the year ended
December 31, 2008 and although WebTech Wireless and Grey Island
have attempted to identify important factors that could cause
actual results to differ materially from those contained in
forward-looking statements, there may be other factors that cause
results not be as anticipated, estimated or intended. There can be
no assurance that such statements will prove to be accurate, as
actual results and future events could differ materially from those
anticipated in such statements. Accordingly, readers should not
place undue reliance on forward-looking statements. WebTech
Wireless and Grey Island do not undertake to update any
forward-looking statements that are incorporated by reference
herein, except in accordance with applicable securities laws.
All trademarks and brands mentioned in this release are the
property of their respective owners.
The Toronto Stock Exchange does not accept responsibility for
the adequacy or accuracy of this release.
Neither TSX Venture Exchange nor its Regulation Services
Provider (as that term is defined in the policies of the TSX
Venture Exchange) accepts responsibility for the adequacy or
accuracy of this release.
Contacts: WebTech Wireless Inc. Scott Edmonds CFO (+1)
604.419.8135 Email: sedmonds@webtechwireless.com WebTech Wireless
Inc. R. Joe Dhami Investor Relations Contact (+1) 877.811.4518 ext.
462 Email: ir@webtechwireless.com Website: www.webtechwireless.com
Grey Island Systems International Inc. Owen Moore President and
Co-Founder (+1) 416.348.9991 Email: owenm@interfleet.com Website:
www.greyisland.com
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