09/17/02 Koala Announces Definitive Letter of Agreement to Acquire 1537173 Ontario, Limited -- Operating Under IPCO, Ltd.
VANCOUVER, British Columbia--(BUSINESS WIRE)--Sept. 17, 2002--Koala International Wireless, Inc. ("Koala") (KIWI - news) announced today a definitive agreement to acquire 100% of the shares of 1537173 Ontario, Limited ("IPCO") in a voluntary share exchange for 28,000,000 restricted shares of Koala's common stock.
IPCO, incorporated in Ontario, Canada, is a mobile computing and hardware development company based in Toronto, Ontario. The Company has developed a proprietary, handheld personal intelligent network computing device that can be produced at a cost substantially less than its competitors. The device, code named "MOBI," communicates directly with multiple Short Messaging, data and voice networks and delivers portable data, Internet access, email, Short Messaging, calendaring, office tools, MP3 and other applications, some not currently available in the marketplace.
The MOBI utilizes a reduced-size, QWERTY-style keyboard and can be upgraded using both existing low cost peripherals and MOBI-designed add-ons which operate in conjunction with standard telephony and data applications. The MOBI will be enabled to deliver full cellular voice service over CDMA or GPRS carrier infrastructure. Unlike competitive devices currently being offered (or in development), the bulk of the MOBI's processing and memory capability will reside on the network in an existing multiple secure server environment, substantially reducing device manufacturing costs and adding a number of significant efficiencies in operating functionality.
The MOBI is currently in the final pre-manufacturing and certification prototype form and IPCO has commenced steps for final global certification for the operability of the MOBI within multiple jurisdictions. IPCO owns all of the intellectual property rights and is the global master license holder for the MOBI and its related hardware.
K. Andrew White, CEO designate of Koala, said: "The MOBI, coupled with the IMVNO currently in development by Koala and its acquisition companies, is the next logical step in the evolution of handheld computing and communications devices. By producing the device with greater functionality at a drastically reduced price, we feel that the MOBI will appeal to a much broader market than that enjoyed by our competitors."
Christine Cerisse, Chairman and Director of Koala, said: "The acquisition of IPCO provides Koala with the third and final leg of its targeted IMVNO technology platform. Upon closing the acquisitions of Route1, NoWire and IPCO, Koala will be in a position to offer its products and services to a diverse and largely untapped cross-section of domestic and international customers."
About Koala: Koala is developing an International Mobile Virtual Network Operator (IMVNO) platform to allow the delivery of voice, data and Short Messaging over multiple networks. Concurrent with the IMVNO development, Koala is pursuing the development of applicable devices to serve the network subscribers. The IMVNO strategy will enable subscribers to access the Internet, play and store MP3, utilize existing applications including calendaring, contact management systems, email and Short Messaging and additional functionality, some not currently available in the marketplace.
This material includes forward-looking statements based on management's current reasonable business expectations. In this document, the words (and phrases containing the words) "targeted," "will," "can," "feel," "upon" and similar expressions identify certain forward-looking statements. These statements are made in reliance on the Private Securities Litigation Reform Act, Section 27A of the Securities act of 1933, as amended. There are numerous risks and uncertainties that could result in actual results differing materially from expected outcomes. The material should be read in conjunction with the Company's current annual and quarterly reports filed with the SEC, which contain discussions of currently known factors that could significantly impact the Company's future expectations.
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