Security Biometrics Inc. and Lightec Communications Inc. to Merge; Combined Company Revenue Expected to Exceed $17 Million in 2002
WHITE PLAINS, N.Y., Apr 4, 2002 (BUSINESS WIRE) -- Security Biometrics Inc. (OTCBB: SBTI) and Lightec Communications Inc. of Poughkeepsie, NY (www.lightec.cc) today announced that they have agreed to merge their two companies. Under the agreement, shareholders of Lightec Communications will receive a combination of cash and stock in Security Biometrics worth approximately $12 million.
Lightec Communications is a leading provider of high quality telecommunications design, installation and information technology services. Since its formation 1996, Lightec has sustained a 25% growth rate and has been profitable since inception. Lightec currently has over $11 million of projects under contract for 2002.
Revenue is expected to exceed $17 million, with an EBITDA (Earnings Before Interest, Taxes, Depreciation and Amortization) of $4.8 million for the combined companies. The revenue and synergies of the combined management teams will fuel an accelerated growth strategy for Security Biometrics, and will provide a platform to execute the company's business plan, which includes a significant penetration into the growing biometrics signature authentication markets.
Michael Richard, Founder and President of Lightec said, "We are looking forward to being part of the Security Biometrics Group and contributing to their growth plans. Lightec's current education IT infrastructure and customer list is an ideal platform from which Security Biometrics can accelerate the deployment of its technologies including, Penflow(TM) Biometrics Signature Verification (BSV) technologies, Gesture Recognition (GRT) and Multi TouchPad technology."
Ken Barr, Chairman and CEO of Security Biometrics said, " Security Biometrics, and Lightec's proprietary products, services, and infrastructure compliment each other and Lightec gives us a strong base of proven profits from which to accelerate the growth of the combined operations."
Michael Richard has agreed to join the Board of Directors, and Dr. Nabil El-Hag the architect of the strategic relationship between Lightec and Security Biometrics, has joined the Security Biometrics Advisory Board. Dr. El-Hag brings over 25 years of financial advisory experience in domestic and international markets with entrepreneur and Fortune 500 Company's.
About Lightec Communications
Lightec Communications (www.lightec.cc), is a leading provider of high quality telecommunications design, installation and information technology services. Services offered include the full spectrum of network communications infrastructure needs from customer premises to local and long haul outside plant. Headquartered in Poughkeepsie, New York, the company maintains offices in New York and Connecticut currently the company has 35 employees. Lightec's markets include schools, universities, research complexes, healthcare organizations, Fortune 500 companies, non-profits, governmental entities and major telecom carriers. Customers include Yale University, Vassar College, City of White Plains, the Bridgeport Schools district and the NY Stock Exchange.
About Security Biometrics
Security Biometrics Inc. (www.sigbio.com), through its wholly owned subsidiary Netface Ltd., develops, markets and distributes dynamic biometric technologies related to the security applications of banking and financial transactions, video gaming, interactive TV and security markets. Biometric technologies measure operative human characteristics such as: voice recognition; signature recognition; keystroke recognition; and gesture recognition. It simplifies human interaction with electronic devices and machines by allowing intuitive communication with computers and machines. Security Biometrics Inc. recently filed for a method patent with the US Patent and Trademark Office for its Short Loop Identity Verification technologies, which incorporates various biometric solutions, including dynamic signature verification technology.
Except for any historic information contained herein, the matters discussed in this press release contain forward-looking statements that involve risks and uncertainties, which are subject to section 27A of the Securities Act of 1933 and section 21E of the Exchange Act of 1934, and are subject to safe harbor created by these sections. Any statements that express or involve discussions with respect to predictions, beliefs, plans, projections, objectives, goals, assumptions of future events or performances are not statements of historical fact and may be "forward looking statements". Forward looking statements in this release may be identified through the use of such words as "expects", "anticipates", "estimates", "believes", or statements indicating certain actions "may", "could", or "might" occur. Actual results, performance or achievements could differ materially form those anticipated in such forward-looking statements, which involve numerous risks and uncertainties, including the Company's ability to market its products and services in a competitive environment as well as other factors set forth in the Company's filings with the Securities and Exchange Commission.
CONTACT: Security Biometrics Inc.
Chris Farnworth, Tel: 1-866/522-3888
email: cdfarnworth@sigbio.com
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