Some good news out for MRY this morning...
ca.biz.yahoo.com
Monday July 10, 8:49 am Eastern Time
Company Press Release
SOURCE: Mercury Scheduling Systems Inc.
via BCE Emergis e-News Services
Mercury Scheduling Systems Inc. - Airline Industry Giant
Vancouver, British Columbia
Mercury Scheduling Systems Inc. (MYSYF:OTCBB; MRY:CDNX) has announced a strategic marketing agreement, exclusive to our direct competitors, with SITA, the world's largest provider of telecommunications and information solutions to the air transport industry. The agreement allows SITA to re-brand mercury's leading-edge crew tracking products under its own name and offer sales, integration and support facilities to its customers. SITA currently sells and supports its own products to over 1800 customers, including 150 customers using flight planning or flight tracking solutions. Together with Mercury's best-of-breed crew tracking software the SITA/Mercury partnership can now offer airline customers integrated solutions to cover both their aircraft and crew assets, any airline's two most costly assets.
With the agreement, SITA negotiated the right to acquire up to 1.5 million shares (approximately 5.5% of outstanding shares) in Mercury Scheduling Systems Inc upon achieving certain recurring license and support fees revenue targets. The inclusion of share rights in this agreement demonstrates SITA's commitment to Mercury and signifies the start of what is expected to be a long standing equity involvement in Mercury.
``This agreement with SITA, a global player in providing information solutions to the airline industry, is a significant achievement for our company,'' said Graham Whitmarsh, President and CEO of Mercury. ``SITA has been an established service provider to the airline industry for over 50 years and includes most of the world's major airlines as customers. To be chosen by SITA to provide the crew counterpart to their flight tracking solution is a huge vote of confidence in Mercury's technology and expertise in delivering complex, second generation crew management systems to the airline industry''.
The share rights allow SITA to acquire up to 1.5 million shares in Mercury Scheduling Systems Inc. These rights are to be released in 5 stages and are linked to SITA generating successive levels of recurring license and support fee revenue for Mercury. In order for SITA to have rights to all 1.5 million shares they must generate a minimum USD$2,500,000 per year recurring revenue. The exercise prices for the rights are between $1.50 and $2.50. In addition to the recurring revenue, Mercury will receive payment for solution design, development, integration, training and system commissioning.
Created in 1949, SITA serves over 1,800 customers in 220 countries and territories, over the world's largest, most advanced integrated voice and data network. Its customers include airlines, aerospace companies, air-freight organizations, travel and global distribution companies, airport authorities and governmental organizations. It offers a wide portfolio of products and services, including leading global solutions for data and voice communications, and value added applications for flight, airport, air-freight, baggage, fare, and passenger services.
This marks the second strategic marketing agreement announcement in less than a month for Mercury. The company announced an agreement with IBM earlier this month in Sydney, Australia, linking Mercury with the world's largest information technology company and fast-tracking Mercury's Magellan crew scheduling and crew communications systems for immediate availability to the airline industry market place.
``The agreement with SITA will be incremental to our own sales efforts and sales channels, even when you include those of IBM on our behalf,'' said Whitmarsh. ``We expect SITA's efforts at marketing, integration and support of the Mercury-developed system will be complementary to what we and IBM are doing in those areas.''
About Mercury Systems Mercury is emerging as a leading supplier of airline crew management systems worldwide. Improving the effectiveness of crew management is an opportunity which offers airlines great potential for savings, as crew costs can make up 20 % of overall airline expenses, often exceeding aircraft and fuel costs. Airline spending in the field of crew management and field support has been estimated at well over a billion dollars.
Mercury Scheduling Systems Inc. is a software development company that licenses some of the most innovative airline operations software in the world. With a broad range of software products, Mercury is positioned to meet the needs of all sizes of airlines. The company has an established client base of 25 airlines, including leading companies such as British Airways Regional, DHL Airlines, Canada 3000, WestJet, Aloha Airlines, Legend Airlines and Ansett Australia. Mercury is one of 30 select companies that make up the CDNX Technology Index, which contains 80% of the top technology listings by market cap.
On behalf of the Board of Directors of Mercury Scheduling Systems Inc., Graham Whitmarsh, President & CEO
See: Backgrounder on SITA on our website www.mercury.bc.ca. - under 'media kit'.
INQUIRIES MAY BE DIRECTED TO: Investor Relations:
Steve Johnson (604) 683-8668 or toll-free at 1-888-614-1111 or email to investors@mercury.bc.ca
Media Contact: Kate James, Kate James & Company (604) 266-8780 or email to katejames@mercury.bc.ca
Or visit our website: mercury.bc.ca
For more information on SITA, visit: sita.int
SOURCE: Mercury Scheduling Systems Inc. |
