BW0196 MAY 19,1997 11:19 PACIFIC 14:19 EASTERN
( BW)(RACOM-SYSTEMS)(RCOM) Racom and Fujitsu form smart card alliance
Business Editors
DENVER--(BUSINESS WIRE)--May 19, 1997--
Alliance will develop, manufacture, and market contactless
smart cards based on ferroelectric technology
Racom Systems, Inc. (NASDAQ: RCOM) and its affiliate, Racom
Japan, Inc. ("Racom"), announced today, an agreement with Fujitsu
Limited ("Fujitsu') of Tokyo, Japan (the "Companies") to jointly
develop, manufacture and market contactless smart card systems for
use in Electronic Commerce.
Under the terms of the agreement, the Companies will deliver a
new generation of contactless smart cards and smart card terminals
based on Racom's ferroelectric RF communications technology. The
agreement further provides Racom access to Fujitsu's extensive
systems technology for the manufacture of its own products. In
consideration of the agreement, Racom shall receive certain license
fees and royalties from Fujitsu.
"The cooperation broadens our ability to offer total solutions
for markets such as transportation, banking and retail where smart
card based electronic payment systems are rapidly taking hold," said
Richard Horton, CEO and President of Racom. "We believe Fujitsu's
vast systems capabilities will further enhance Racom's ability to
serve these markets."
While the cooperation aligns the Companies' electronic payment
system strategies, it also provides Fujitsu immediate access to
Racom's current line of smart card products and technology. As a
result, Fujitsu can now integrate Racom's low and high frequency
contactless smart card systems into its existing line of banking and
retail transaction systems. In order to assure compatibility with
industry standards and availability, the Companies have also agreed
to jointly evaluate and define market requirements for the new
generation of jointly developed products.
About Racom
Racom is a leading developer and marketer of contactless smart
card systems used primarily in electronic commerce. Racom generates
revenues principally from fee based development projects, sale of its
smart card products and selective licensing of its technology.
Licensing and project related revenues are typically billed in stages
based upon completion of milestones and therefore quarterly financial
results have historically fluctuated significantly. Racom is now
expanding its engineering, marketing and sales efforts to address
substantially larger business opportunities, with emphasis on
generating recurring revenues from product sales and services. A
primary example of such an opportunity is Racom's participation as a
founding member of the Tran$Cash Consortium which offers full
turnkey, entrepreneurial solutions for electronic fare, toll
collection and E-ticketing in major transportation markets. For
further information about Racom, its technology and products, contact
Racom at its Web address, racom.com, by telephone at
(303)771-2077, or by fax at (303)771-4708.
About Fujitsu
Founded in 1935, Fujitsu Limited is the world's second largest
computer manufacturer and an international leader in
telecommunications, semiconductors and other electronic devices. The
Fujitsu group of over 400 technology, software, and service companies
posted global revenues of more than $34 billion in the fiscal year
ended March 31st 1996. For further information about Fujitsu, its
technology and products, contact Fujitsu at its Web address,
fujitsu.co.jp .
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CONTACT: Racom Systems Inc.
Oliver Gatchell, (303) 771-2077
Fax (303) 771-4708
or
ADR Management Group
John Germinario, (201) 285-3224
Fax: (201) 285-3225 |
