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BI AND CINCINNATI MICROWAVE FORM STRATEGIC ALLIANCE, AND MERGE GUARDIAN TECHNOLOGIES INTO BI

 BI AND CINCINNATI MICROWAVE FORM STRATEGIC ALLIANCE,
 AND MERGE GUARDIAN TECHNOLOGIES INTO BI
 BOULDER, Colo., March 30 /PRNewswire/ -- BI Inc. (NASDAQ: BIAC) and Cincinnati Microwave Inc. (NASDAQ: CNMV), today announced the completion of an agreement that merges Cincinnati Microwave's subsidiary, Guardian Technologies Inc. into BI, and provides for a strategic alliance between Cincinnati Microwave (CMI) and BI. The total transaction of $13 million, was made with a combination of cash and restricted BI common stock.
 According to the merger agreement, CMI received approximately 15 percent of the common stock of BI on a fully diluted basis, (1,176,000 shares) valued at $10 million, in exchange for 100 percent of the stock of Guardian Technologies. Additionally, BI paid $3 million to CMI as payment for an OEM agreement under which BI and CMI will jointly design, and CMI will manufacture, future product offerings for the corrections industry. BI also received a number of patents, one of which relates to remote alcohol and drug detection, considered valuable to future product development.
 The combination of the two companies gives BI approximately 750 customer accounts, to whom 26,000 units have been shipped. BI management estimates that the merger puts BI's total share of the electronic monitoring home arrest market in excess of 70 percent. The addition of Guardian Technologies' monitoring customer base into the existing BI Monitoring Corp. customer base gives BI an estimated 40 percent of the privately monitored segment of the market.
 BI management believes a number of key customer accounts are a part of this transaction. Management believes Singapore represents such a key account, and because of its program plans and strategic location in the Pacific Rim, the company views this program as the bellwether for its future in the international market arena.
 David J. Hunter, BI's president and CEO said, "BI is extremely pleased with the Guardian/BI merger and we are looking forward to the many opportunities created by our new association with Cincinnati Microwave. BI's alliance with Cincinnati Microwave provides multiple opportunities to combine the best thinking and technology that both companies are able to develop. New products are already being conceived that will take us into the next century."
 BI believes that the integration process that follows such a transaction could take six to nine months. However, Hunter concluded by saying, "We believe this transaction will enable BI to recognize revenues in excess of $25 million in our next fiscal year, beginning July 1, 1992. With this anticipated increase in business activity, we will now be able to improve our productivity in the many functions that this complex market requires and also provide our shareholders with a fair return on their investments."
 -0- 3/30/92
 /CONTACT: Joanna Manley of BI Inc., 303-530-2911/
 (BIAC CNMV) CO: BI Inc.; Cincinnati Microwave Inc. ST: Colorado IN: CPR SU: TNM


MC -- DV005 -- 2934 03/30/92 13:28 EST
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Publication:PR Newswire
Date:Mar 30, 1992
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