EDMONTON, Alberta¡X(BUSINESS WIRE)¡XFebruary 22, 2000¡XAxion Spatial Imaging Inc. (Pink Sheets:AXON), will distribute a general letter to shareholders relating to recent corporate events. The text of the letter to shareholders follows:
Dear Shareholder:
Axion Spatial Imaging Inc. (Axion) is very pleased to announce that we have submitted our Form 10-SB Registration Statement to the SEC in order to become a reporting company under the Securities Exchange Act of 1934. Once this Registration Statement is approved by the SEC, Axion's common stock will be eligible for re-listing on the NASD OTC Bulletin Board. Although we have no way of knowing how long the SEC review process will ultimately take, we have been informed that a typical time period is 60 to 90 days, barring unforeseen difficulties. The company has appreciated your patience and continued support over the past few months while the registration was being prepared.
The company would also like to take this opportunity to bring you up to date on how it finished 1999, and to look ahead at its focus and strategy for 2000 and beyond.
1999 Overview
First, based on un-audited financial statements for the year ending December 31, 1999, Axion¡¦s sales were in excess of CDN$550,000, representing an increase of 30% over sales in 1998 (CDN$383,282). Audited financials should be completed by March 20, 2000.
The most notable fact emerging from these results is that the majority of these sales were contracts that included not only the development work involved, but also a defined schedule of royalties as part of each contract. Indeed, the expected royalties from contract sales concluded in 1999 are expected to reach $15 million over the next five years. A contract is therefore not the end of the sale; rather, our contracts mark the beginning for royalty sales over the long term.
Axion made a number of announcements during the course of 1999 with respect to contracts and agreements made by Axion¡¦s wholly owned subsidiary, Axion Spatial Imaging Ltd. (ASIL), and would like to provide you with an update to these, for your information:
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„h Concerning ASIL¡¦s partnership with Computing Devices Canada, Ltd., (a wholly-owned subsidiary of General Dynamics (NYSE:GD)), Computing Devices has advised that it is actively marketing battleWEB, integrated with ASIL¡¦s ADMT functionality, to a number of key military and defense industry customers worldwide. ASIL expects to realize royalties from these contracts on an ongoing basis over the duration of its five-year contract with CDC.
„h The Letter of Intent between ASIL and Ditek Software Corp., signed in June 1999 has expired, with the two companies not having reached agreement on the development of DynaIMAGE embeddable GIS-based graphic engines and GIS/CAD-based software tools. ASIL is not expecting to proceed further with Ditek at this time.
„h ASIL continues to receive royalties as part of its income stream from sales of International GeoOffice, a product marketed by international Datashare corporation.
„h ASIL announced in July that its strategic partner Boyd Geomatics signed a deal with the Whitestar Corporation to provide online geo-imagery using Axion's ADMT technology. ASIL has been advised that progress on this project is pending further financing considerations, which have not yet been resolved by other parties.
„h Work has begun on developing and delivering ASIL¡¦s software products to Audio International, under the company¡¦s most recently announced agreement, involving contract work and a royalty revenue structure over the next three years.
Looking Ahead
Most of 1999 was a year during which Axion established processes and systems for being able to expand and build its business in the future.
That infrastructure is now in place, and Axion has included in its new business plan formal and targeted marketing strategies through 2000 and beyond. These strategies are partially based on the company¡¦s success in winning a series of contracts, and the ongoing interest it is getting from a broadening range of market sectors.
Up through the first half of 1999, ASIL¡¦s infrastructure development was supported in part by the marketing of its CD-ROM multimedia products. The company¡¦s success in establishing, delivering, and proving its capability in providing GIS and positional data-based solutions to its clients through contract and royalty agreements have contributed to the company¡¦s major focus on this area for 2000 and beyond. Therefore, the business plan reflects a reduced dependence on sales from the multimedia product line.
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The company¡¦s planned growth strategies are characterized by a focus on target customers in the resource management, asset management, government, utilities, and military sectors, which have a specific need for fast access, display, manipulation, and distribution of positional data information.
Axion is pleased to announce that the beginning of this year has already borne out this strategy, with contract work worth $500,000 already in hand as of January 2000. Royalty arrangements related to this contract work, as well as other new business currently under development and negotiation point to a year of significant growth and added value for the company¡¦s shareholders in 2000 and beyond.
Axion appreciates your continued support, and looks forward to a growing and profitable year.
Sincerely,
Markus Lemke
Chief Executive Officer
Axion Spatial Imaging, Inc.
Except for the historical information presented herein, the matters set forth in this press release are forward looking statements within the meaning of the ''safe-harbor'' provision of the Private Securities Litigation reform Act of 1995. These forward-looking statements are subject to risks and uncertainties that may cause actual results to differ materially. These forward-looking statements speak only as of the date hereof. The Company disclaims any intent or obligation to update these forward-looking statements.
For More Information Contact:
Markus Lemke, CEO
Axion Spatial Imaging, Inc.
Ph: (403) 270-3132/Fax: (780) 423-4468
Email: markusl@axionspatial.com
www.axionspatial.com |
