09/11/03 Koala Inks Agreement to Form Business Development and Management Alliance with Digi Link Technologies
TORONTO--(BUSINESS WIRE)--Sept. 11, 2003--Koala International Wireless, Inc. (KIWI - news) , a leader in the development of web-based, wireless network applications and wireless device development, announced today that it has entered into an memo of understanding with Digi Link Technologies, Inc. (DGLT - news) to form a cooperative business development and management alliance ("Agreement"). Final terms of the Agreement are subject to the satisfactory outcome of due diligence conducted by both DGLT and KIWI of each other's material representations as well as approval by each Company's respective Board of Directors.
KIWI intends to provide development and technical services to DGLT as well as provide additional resources which may include, but will not be limited to, financial and operational management support and regular and customary consulting services as may be required. The parties intend to cooperate in determining the best methods of exploitation and marketing of the assets as well as to establish the managerial duties and responsibilities for the day-to-day operation(s). KIWI will evaluate DGLT's current business model and assist with identifying synergistic business opportunities, evaluate alternate uses of corporate assets, act as advisors to DGLT in the exploration and evaluation of strategic alternatives to enhance stockholder value including the formation of a third party business combination or the sale of all or certain assets of DGLT.In addition, KIWI will attempt to explore the possible utilization of combining the use of its own proprietary prototype communication device(s) in combination with the DGLT spectrum and frequency assets.
Hal Fischer, Koala's CEO stated, "This alliance will further position KIWI as a bona fide transport vehicle for data and voice in the USA and will add another more cost effective transmission method for Koala's device users contemplated in the world's largest data and voice market."
To date, DGLT's business involved the consolidation of entities engaged in the management or development of Specialized Mobil Radio ("SMR") 220Mhz communication systems. By networking these formally independently owned systems, management envisioned the potential development of a seamless, cost effective, value-added telecommunications voice and data system throughout North America.
Peter Jegou, President and CEO of DGLT stated, "The Company has recently changed it's business focus and is currently entertaining a number of different proposals. This contemplated alliance represents a very positive step toward developing new strategies and alternatives to collectively enhance shareholder value."
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 "can," "anticipates," 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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