Nexus Telocation Systems Ltd. Announces Binding Term Sheet For the Purchase of Pointer (Eden Telecom Group) Ltd.
March 10 2004 - 8:26AM
PR Newswire (US)
Nexus Telocation Systems Ltd. Announces Binding Term Sheet For the
Purchase of Pointer (Eden Telecom Group) Ltd. GIVATAYIM, Israel,
March 10 /PRNewswire-FirstCall/ -- Nexus Telocation Systems Ltd.
(BULLETIN BOARD: NXUS) , a leading provider of Stolen Vehicle
Retrieval services, announced today signing of a binding Term Sheet
with the shareholders of Pointer (Eden Telecom Group) Ltd., its
operator in Israel, to purchase 100% of the issued share capital of
Pointer in exchange for shares and warrants of Nexus in an amount
equal to approximately 27% of the issued share capital on a fully
diluted basis, post transaction. The completion of the transaction
is subject to the approval of the shareholders of the Company,
banks and other governmental authorizations. The transaction
reflects the Company's policy not only to serve as a technology
company but also as an operator. Upon the completion of the
purchase of Pointer both Nexus and Pointer will be able to
effectively serve their common goals. Pointer is a communication
company specializing in providing location services for vehicles
and persons through a communication network deployed throughout
Israel. The network is capable of command and control services,
telemetria and transfer of wireless data. The main product of
Pointer is a sophisticated system for the protection and location
of vehicles. The products of Pointer are based on Nexus'
technologies. The product includes a distress button which is an
integral part of the system which allows to immediately alert, from
the vehicle, assistance services from a twenty four hours manned
telephone service center, which locates the vehicle and immediately
sends to it the required service. The Pointer systems also allows
personal locationof the vehicle through the internet, through a
personal code, at any given time, through the Pointer website --
http://www.pointer4u.co.il/. Pointer has approximately 50,000
subscribers. Revenues for the year 2003 of Pointer were NIS 44.3
million, representing an increase of 15% compared to the year 2002
and operating profits of NIS 1.5 million. Arik Avni, CEO of Nexus,
added, "Pointer as Tracsat, Nexus' subsidiary in Argentina which
serves 20,000 subscribers, will be another operator owned by Nexus.
The know-how and experience of Pointer, managed by Giora Inbar,
Pointer's CEO, will contribute to our capabilities to lunge new
operations in the future." Nexus Telocation Systems Ltd. develops,
manufactures and markets low energy and cost effective wireless
communications and location based information systems through the
application of digital spread spectrum technologies deployed in
Stolen Vehicle Retrieval applications. This press release contains
forward-looking statements with respect to the business, financial
condition and results of operations of Nexus and its affiliates.
These forward-looking statements are based on the current
expectations of the management of Nexus, only, and are subject to
risk and uncertainties relating to changes in technology and market
requirements, the company's concentration on one industry in
limited territories, decline in demand for the company's products
and those of its affiliates, inability to timely develop and
introduce new technologies, products and applications, and loss of
market share and pressure on pricing resulting from competition,
which could cause the actual results or performance of the company
to differ materially from those contemplated in such
forward-looking statements. Nexus undertakes no obligation to
publicly release any revisions to these forward- looking statements
to reflect events or circumstances after the date hereof or to
reflect the occurrence of unanticipated events. For a more detailed
description of the risks and uncertainties affecting the company,
reference is made to the company's reports filed from time to time
with the Securities and Exchange Commission. Contact: Ronen Stein,
V.P. and Chief Financial Officer Tel.; 972-3-572 3111 e-mail:
DATASOURCE: Nexus Telocation Systems Ltd. CONTACT: Ronen Stein,
V.P. and Chief Financial Officer of Nexus Telocation Systems Ltd.,
+972-3-572-3111,
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