NEOM .023x.024.Good news out.(COMTEX)B: NeoMedia Technologies, Inc., Signs LOI to Acquire Secure Sourc
Technologies Including Seven Patents with Homeland S
B: NeoMedia Technologies, Inc., Signs LOI to Acquire Secure Source Technologies
ncluding Seven Patents with Homeland Security and Wireless Industry Applications
FT. MYERS, Fla., Jul 28, 2003 (BUSINESS WIRE) -- NeoMedia Technologies, Inc.
(OTCBB: NEOM), said today that it has reached an agreement in principal to
acquire and merge with Secure Source Technologies (SST) of Silver Spring,
Maryland, including the acquisition of seven enforceable U.S. and Canadian
patents with Homeland Security and wireless industry applications.
Charles T. Jensen, president, COO and acting CEO of NeoMedia, said a binding
Letter of Intent between the companies has been signed, and that he is very
excited about the upside potential of the synergy of technologies that a
combined NeoMedia and SST should offer, especially to the rapidly-growing
Homeland Security and wireless marketplaces.
Jensen said that, following completion of due diligence and required approvals,
the planned acquisition and merger would be completed through an exchange of
common stock from NeoMedia to SST, and that the companies intend to centralize
administrative and management functions. The completed merger should enhance
shareholder value through the increase of cash flow from patent licensing and
expanded applications of the technology, Jensen said.
This is the second pending acquisition by NeoMedia. Earlier this year, the
company announced plans to acquire Loch Energy, Inc. (see NeoMedia Reaches
Agreement in Principal to Acquire Loch Energy, Houston-Based Company with $410
Million in Proven and Probable Oil Reserves, Business Wire, March 13, 2003).
'Patents and IP Keys to Acquisition'
Jensen said SST's patents, intellectual properties and know-how were keys to the
acquisition and merger. Chas Fritz said that through the end of 2002, the IP and
patents had generated more than $900,000 in licenses, fees and royalties. A
broad range of companies, including Bayer AG, ESPN, American Cyanamid, Bank of
Taiwan, American Express, Republic Bank, J.P. Morgan Chase, and others,
including NeoMedia, had licensed, paid fees or royalties for use of the patents
or purchased products incorporating the patents and IP.
"We believe that SST's patents and IP will greatly compliment our own
Intellectual Property portfolio, "said Fritz.
The merger is subject to negotiations of definitive contracts, corporate filing
requirements, completion of due diligence and any required approval by the
Boards of Directors and shareholders of both companies. It is anticipated that
closing would occur approximately 30 days after such conditions are satisfied.
Fort Myers-based NeoMedia has been an innovator and international leader in
print-to-Internet and other technologies that make information faster and easier
to access, with specific expertise in homeland security and e-authentication
applications. SST, based in the Washington, D.C., suburb of Silver Spring,
Maryland, is a provider of security solutions and technology to the financial
services and manufacturing industries.
About NeoMedia Technologies
NeoMedia Technologies, Inc. (www.neom.com), is an innovator and international
leader in print-to-Internet and other technologies that make information faster
and easier to access, with expertise in homeland security and e-authentication
applications.
About Secure Source Technologies
Secure Source Technologies, Inc., is a provider of security solutions and a
pioneer in covert security technology for the manufacturing and financial
services industries.
This press release contains forward-looking statements within the meaning of
section 27A of the Securities Act of 1933 and Section 21E of the Securities
Exchange Act of 1934. With the exception of historical information contained
herein, the matters discussed in this press release involve risk and
uncertainties. Actual results could differ materially from those expressed in
any forward-looking statement.
SOURCE: NeoMedia Technologies, Inc.
CONTACT: NeoMedia Technologies, Inc.
Charles T. Jensen, 239/337-3434
cjensen@neom.com
or
The Kaminer Group
David A. Kaminer, 914/684-1934
dkaminer@kamgrp.com
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INDUSTRY KEYWORD: TELECOMMUNICATIONS
SOFTWARE
E-COMMERCE
INTERNET
BANKING
MERGERS/ACQ
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