CENTRAXX AND SAMSUNG IN A JOINT VENTURE FOR KOREA
Seoul, Korea, August 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™ 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.
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For more information contact:
Centraxx Investor Relations:
Chuck Courson
Frankopan & Co.
Tel. 1-800-355-1564 Ext. 243
E-mail: ccourson@frankopan.com
Centraxx Inc.:
Michael Ivezic
Chairman and CEO
Tel. 905-826-9988 Ext. 224
E-mail: mivezic@centraxx.com
Samsung SDS Co., Ltd.:
Chong Woong Park
Senior Manager
Tel. 82-2-727-7682
E-mail: semukcwp@samsung.co.kr
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.)
Chuck Courson
Financial Public Relations
Frankopan & Co.
1-800-355-1564 Ext. 243
www.frankopan.com |
