Paradigm Advanced Technologies Signs U.S. $11 Million Licensing Agreement and Establishes a European Fulfillment Center.
TORONTO--(BUSINESS WIRE)--March 21, 2002
Paradigm Advanced Technologies, Inc. (OTCBB:PRAV) (www.powerloc.com) announced today that it has signed a four-year licensing agreement with minimum expected revenues of U.S. $11 million.
Under the terms of the agreement, Destinator GMBH, an affiliate of PowerLOC Germany Limited, is expanding the existing PowerLOC Germany distribution agreement (www.powerloc.com/Press_Release_Sept24.htm) into a Master Distribution agreement for the Destinator(TM) products in the marketing area of Germany, Austria, Switzerland, Luxembourg, Belgium and Holland. As Master Distributor, Destinator GMBH licenses the Destinator(TM) software from Paradigm and is responsible to seek and execute distribution agreements within the marketing area. As well, Destinator GMBH will provide and manage any and all operations activities and facilities such as manufacturing, assembly, fulfillment, marketing, public relations and multilingual customer support. According to the agreement, Paradigm will also be able to utilize these facilities and services for its independent sales outside of the marketing area.
As part of the agreement, Destinator GMBH has initially ordered over 20,000 Destinator(TM) software licenses valued at more than U.S. $2 million, to be sold during the first year of the agreement. Destinator GMBH has made additional commitments for even greater volumes for the succeeding three years.
Mr. Gil Sberlo of Destinator GMBH said, "Ever since we started distributing Destinator(TM) we have seen increasing market demand coupled with great consumer satisfaction. We have increased our staff substantially and decided to focus only on the Destinator(TM) product while assuming the Master Distributor role. We are confident that our actual sales will even surpass our initial order and commitments."
Claude Martane, General Manager Consumer Applications Europe, NAVTECH added, "We are extremely pleased with the quick penetration of the Destinator(TM) (which uses NAVTECH maps) in Europe. Utilizing our market leading database, Destinator(TM) offers a very accurate and safe navigation application for PDAs. I believe that this contract signals the beginning of a mass-market revolution in the navigation industry that is caused by the portability and attractive price point of Destinator(TM)."
Eduardo Guendelman, President and C.E.O. of Paradigm Advanced Technologies, stated "We are extremely satisfied with this very significant achievement. The Destinator(TM) product only began selling in Europe in November of 2001 and has established, in a very short period of time, a "best of breed" status stimulating high demand in the distribution network as well as receiving highly acclaimed awards and favorable media and market reviews."
Ron Yekutiel, General Manager of the Destinator Division, added, "We have been very impressed by the distribution work that PowerLOC Germany has done with us to date and have very high expectations of Destinator GMBH as Master Distributors. In addition to securing substantial revenues with high margins, this agreement greatly facilitates our work in Europe while at the same time reduces our overhead and operating expenses. We are now working on similar agreements for other markets."
ABOUT PARADIGM ADVANCED TECHNOLOGIES, INC.
Paradigm Advanced Technologies, Inc. (OTC BB: PRAV) (www.powerloc.com) provides a full range of wireless location tracking technology solutions to service providers and end users in the telematics, GPS, M-Business, L-solutions and CRM/ERP markets. Paradigm's servers, software and devices locate, track, navigate, communicate with and manage people, vehicles and other assets. Paradigm's technology was chosen to help track recovery vehicles at the World Trade Center disaster recovery site. "Destinator(TM)" (www.destinator1.com) won the prestigious People's Choice Award of America's Pocket PC Magazine in 2001 and a similar award in Germany this year. Destinator(TM) technology provides a breakthrough experience in vehicular navigation and communication. Paradigm owns the exclusive licensing rights to a broad based wireless location patent (U.S. Patent no. B1 5,043,736) covering the apparatus and method of transmitting position information from satellite navigational signals (such as GPS) over cellular systems. For further information on Paradigm and its PowerLOC division, visit www.powerloc.com or call (905) 764-3701.
Paradigm is also listed on the Frankfurt Stock Exchange - symbol - PG8.
ABOUT DESTINATOR GMBH
Destinator GMBH is a newly incorporated German company spun off from PowerLOC Germany Limited (www.powerloc.com/Press_Release_Sept24.htm) for the sole purpose of providing Master Distribution services for the Destinator(TM) products in the DACH (Germany, Austria, Switzerland) and Benelux (Belgium, Holland, Luxembourg) regions. The company's management is highly experienced in the field of location based services and includes advisors such as Mr. Rolland Mecklinger, former C.E.O. of Alcatel (www.alcatel.com) and Mr. Werner Brodt, former C.E.O. of Cap Gemini Ernst & Young (www.cgey.com).
Already supplying the Destinator(TM) products to over 200 retail outlets in the territory, Destinator GMBH is increasing its customer base daily, building a comprehensive and well organized distribution network. Destinator GMBH is also providing Paradigm with business development consultancy and is actively seeking OEM opportunities, especially in the PDA, Automotive and Telematics markets. Destinator GMBH is currently exhibiting the Destinator(TM) product in the world's largest consumer show, CEBIT, Hall 26, Booth F60.
This press release contains forward-looking statements that, if not verifiable historical fact, may be viewed as forward-looking statements that could predict future events or outcomes with respect to Paradigm Advanced Technologies, Inc., and its business. The predictions embodied in these statements will involve risks and uncertainties and accordingly, Paradigm's actual results may differ significantly from the results discussed or implied in such forward-looking statements.