Dicom Expands International Distribution With License Agreement
Worth in Excess of $5,000,000 Over Three Years
LAS VEGAS--(BUSINESS WIRE)--March 20, 2000--Dicom Imaging Systems, Inc. (OTCBB:DCIM - news) announced
today that it has entered into an agreement with a private holding company and has granted an exclusive license to distribute
Dicom's Dental Imaging Suite(TM) in the countries of Mexico, Brazil, Spain and Portugal, (Territory) in exchange for a cash
license fee and a guaranteed royalty payment.
The three year agreement, which includes an option to renew, allows the holding company to extend the Territory to a number of other Hispanic countries, and is expected
to generate revenues of approximately $2,650,000 in year one of the agreement, and approximately $5,050,000 over the initial three year term. Payments to Dicom include
a $2,250,000 license fee and a $2,800,000 minimum royalty over the initial term.
Upon signing the agreements, Dicom received the initial payment of $750,000 and has agreed to accept the second and third $750,000 installments of the $2,250,000
license fee on Aug 1, 2000 and Dec 20, 2000, respectively. In addition to the license fee, the royalty payable to Dicom over the term shall be 20% of the gross sales in the
Territory (net of local taxes and credit card discounts), or a minimum royalty of $2,800,000. The minimum royalty is payable and due on the first, second and third
anniversary date of the Agreement and increases each year, $400,000 for year one, $800,000 for year two and $1,600,000 for year three.
``This is another great step in Dicom's international expansion efforts. Hispanic speaking dentists represent a very significant percentage of our market objective,' stated
Wayne Rees, Dicom's Vice President of Sales and Marketing. ``The future revenue opportunities for Dicom in these emerging markets is very strong. Outside of some
minor costs required to finalize Hispanic versions of our Dental Imaging Suite(TM), the revenue from this agreement moves to the bottom line virtually intact. We are also
confident that additional distributor appointments and other strategic alliances will be finalized in the very near future.'
Dicom Imaging Systems, Inc. is a provider of DICOM (Digital Imaging Communications in Medicine) compliant imaging software to the dental industry. Additionally,
Dicom will soon provide Dicom compliant imaging software to the medical industry. Dicom intends to set the standard of DICOM compliance in the dental arena by
distributing a complimentary copy of its Dental Imaging Suite(TM) to dental professionals, laboratories, educational facilities and dental equipment manufacturer and
dealers, through direct mail and through partnering arrangements. Add-on software modules, service and support contracts, and select hardware devices will be marketed
through subsequent telephone and e-commerce sales. For more information, visit Dicom's web site at www.dicom-image.com. |
