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EVERGREEN ENTERS INTO MAJOR LICENSE AGREEMENT TO MARKET SOME OF ITS SOFTWARE

 MCLEAN, Va., Jan. 25 /PRNewswire/ -- Evergreen Information Technologies, Inc. (NASDAQ: EVRG; PSE), today announced that it has entered into a license agreement with Optical Technology Group, Inc. (OTG), to market some of Evergreen's software. Under this exclusive sales agreement, OTG, an affiliate of National Operator Services, Inc. (NOS), has agreed to pay Evergreen royalties of 25 percent of OTG's annual gross sales for the licensed software. OTG has committed to pay Evergreen $200,000 within 30 days as a 10 percent downpayment against first year royalties, expected by the parties to be $2 million.
 The OTG license targets, and Evergreen anticipates, approximately $8 million in royalty payments during the next four years, predicated on OTG's success in marketing the licensed software. Under the license, OTG will bear all manufacturing and marketing costs. Accordingly, the royalties will be net of costs to Evergreen.
 As a by-product of the development of Evergreen's PowerTree on- line, interactive database, Evergreen's software engineers created the licensed software, a series of revolutionary software products which dramatically improve document quality and transmission times.
 One of the products, TLC (Totally Lossless Compression), provides 100 percent lossless image compression and simultaneously enhances the scanned image. The other, Evergreen's image enhancement software, displays images that are comparable to high definition television quality images on a standard personal computer. This technology allows users to store, view, print and telecommunicate images without purchasing expensive workstation equipment. PowerTree's software is not covered by the OTG software license.
 OTG has advised Evergreen that, in addition to adding Evergreen software to its GSA contract, OTG intends to expend at least $500,000 in the first year for hiring key personnel and for marketing expenses to develop the marketplace.
 Optical Technology Group, Inc., a newly formed software marketing and development company located in Bethesda, Md., is expected to market the licensed software products through a national dealer network. OTG has advised Evergreen that it represents a number of companies, including Sony, in the imaging industry. NOS, which is not a signator on this agreement, is a privately held, multimillion dollar communications company.
 -0- 1/25/93
 /NOTE: PowerTree and TLC are trademarks./
 /CONTACT: Marg Donnelly of Evergreen Information Technologies, 703-556-6200, or fax, 703-556-6837/
 (EVRG)


CO: Evergreen Information Technologies, Inc.; Optical Technology
 Group, Inc.; National Operator Services, Inc. ST: Virginia IN: CPR SU: LIC


DC -- DC027 -- 8677 01/25/93 15:57 EST
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No portion of this article can be reproduced without the express written permission from the copyright holder.
Copyright 1993 Gale, Cengage Learning. All rights reserved.

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Publication:PR Newswire
Date:Jan 25, 1993
Words:396
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