Centraxx and Samsung in a Joint Venture for Korea.

Business Editors

SEOUL, Korea--(BUSINESS WIRE)--Aug. 30, 2000

Centraxx Inc. (OTCBB:CNXX) today announced the signing of the final agreement with Samsung SDS Co., Ltd. to establish a joint venture corporation for the purpose of becoming the leading provider of location technology solutions in Korea.

The joint venture, to be known as Centraxx Korea Co., Ltd., intends to develop and implement a wireless Centraxx network throughout South Korea, establish a monitoring station, and exclusively market and sell various Centraxx location tracking products in that country.

Initial capitalization of Centraxx Korea is to be one billion Won with share ownership split 70% Samsung SDS and 30% Centraxx. Centraxx Korea will be headed by Mr. C.W. Park, a veteran Samsung manager with many years experience in various Samsung divisions.

This final agreement completes the documentation of the transactions contemplated by the Memorandum of Understanding signed and announced by the two companies in April.

The installation of the network is scheduled to begin in the second quarter of 2001 in Seoul. Seoul, the nation's capital, has a population of 10.3 million and registered vehicles totaling 2.3 million. The parties expect that the network will gradually be expanded to cover all major urban areas of Korea including the cities of Inchon, Taegu and Pusan. It is estimated that in excess of 750 base stations will be required to provide national coverage and initial forecasts call for the sale of 170,000 AutoRescue(TM) units in the first year. This represents approximately $32 million in revenue to Centraxx. In addition to offering AutoRescue, Centraxx Korea also intends to develop other applications and products specifically for the Korean market.

"The signing of this agreement is the culmination of months of evaluation and negotiation by both companies," said Centraxx Chairman and CEO, Michael Ivezic. "We are pleased that Samsung SDS has chosen Centraxx technology and applications to respond to location-based market needs in Korea. It is an obvious advantage for us to be joining forces with a leading international company like Samsung. This is also a major step in the rollout of a Centraxx international network."

"We have entered into this agreement with Centraxx primarily because of the multiple application potential of the UNI-POINT(TM) technology and the high-speed data communication capability of the network," stated C.W. Park. "The Centraxx location technology offers Samsung SDS an excellent opportunity to enhance our leadership role toward an advanced information society."

About Centraxx Inc.

Centraxx Inc. is a wireless data communications company focusing on providing location technology solutions to the mass market. Centraxx has a patent pending RF land-based system that it intends to deploy in a network configuration in key markets across North America and internationally through joint venture relationships. Centraxx UNI-POINT technology is capable of providing high-speed, two-way data transfer and single point tracking and locating information. Over time, this proprietary, high capacity network will facilitate the wireless transfer of data for a wide range of products and applications.

Centraxx will first introduce an automotive application, the AutoRescue vehicle tracking and recovery system with AutoRescue PLUS(TM) roadside and emergency notification service. This will be the world's first vehicle tracking system combining high accuracy, self-arming reliability and a low price.

More information regarding Centraxx and its products and services can be found on the World Wide Web at www.centraxx.com.

About Samsung SDS Co., Ltd

Samsung SDS Co, Ltd., is a fully integrated IT company that devises information technology solutions that help businesses boost productivity. It handles comprehensive turnkey projects requiring system analysis, design, installation, upgrading, consulting, and troubleshooting. The company operates major voice, data, satellite, and video networks in Korea, and is also a major online service provider. Samsung SDS has strategic alliances with some of the world's leading information technology (IT) companies such as Microsoft (NASDAQ:MSFT), Hewlett Packard (NYSE:HWP), Silicon Graphics (NYSE:SGI), and Computer Associates (NYSE:CA) and the company strives to become a globally recognized IT company in the future.

Samsung SDS is a subsidiary of the Seoul, Korea-based Samsung Group, the 14th largest company in the world and a worldwide producer of telecommunications systems, consumer appliances, A/V equipment, computers, printers and semiconductors.

More information regarding Samsung SDS and its products and services can be found on the World Wide Web at www.sds.samsung.com.

Forward-looking statements in this release are made pursuant to the "safe harbor" provisions of the Private Securities Litigation Reform Act of 1995. Investors are cautioned that such forward-looking statements involve risks and uncertainties, including, without limitation, acceptance of the Company's products, increased levels of competition, new products and technological changes, the Company's dependence upon third-party suppliers, and other risks detailed from time to time in the Company's periodic reports filed with the Securities and Exchange Commission.

(The information in this release has been neither approved nor disapproved by any regulatory body.)