MSGI Enters into $40 Million Contract to Manufacture and Supply US Department of Defense with Proprietary Touch Screen Systems in Conjunction with Woori Technology, Inc.
Wednesday March 26, 7:00 am ET
NEW YORK--(BUSINESS WIRE)--MSGI Security Solutions Inc. (OTCBB: MSGI - News) “MSGI” today announced that it has entered into a $40 million contract with Korea based Woori Technology, Inc. to manufacture and supply the US Department of Defense with proprietary touch screen systems. Last year MSGI announced its intention to expand its product offerings to include military grade Hi-Definition display systems. This new engagement is a direct result of those previously disclosed efforts.
The proprietary military-grade touch screen systems are designed and tailored for use in harsh environments, which include airborne, naval and land based applications. The products will continue to operate under extreme temperatures, pressure and humidity, and will be able to withstand significant shocks.
Woori Technology, which is listed on the KOSDAQ exchange in Korea, has entered into a assignment and assumption agreement with MSGI. The component parts will be purchased by MSGI from the Woori factory in Seoul, Korea and delivered to a new service facility that MSGI and Woori plan to open in Northern California. This new service facility will provide assembly, quality testing, systems integration and ultimate delivery of the systems. This first order is for $39,784,500 representing systems that are expected to be completed and shipped in 2008. MSGI will be seeking traditional commercial banking relationships to support the financial requirements of this new contract.
Seon Bong Noh, President and CEO of Woori Technology commented, “We are pleased to form this new alliance with MSGI Security Solutions and we believe that this is the first of many new collaborative opportunities. MSGI has demonstrated proprietary wireless expertise through its initial relationships in the area of video surveillance and critical asset protection for the US Department of Homeland Security and US Department of Justice and we see this as a natural extension of their abilities and resources.”
Jeremy Barbera, Chairman and CEO of MSGI stated, “The company has spent the last few months preparing and negotiating this new engagement and is very pleased to see our efforts rewarded with the successful execution of this contract. Opening up a channel with the US Department of Defense gives us the ability to introduce our other wireless capabilities to military decision makers and the formation of a facility in Northern California expands our technological infrastructure considerably. MSGI has also been developing extensive covert surveillance capabilities that it believes will be useful to the military as well as federal and state drug enforcement agencies, and we plan on announcing these new products shortly. This assignment and assumption agreement with Woori, a leader in innovative technologies and the recipient of countless awards including the Korean Presidential Commission award for new ventures, materially changes the scope of our business. The initial $40 million order is expected to be completed this year, and we are hopeful that the new line of military products and services will increase in volume and scope with successful reports of live use in the battlefield.”
About MSGI Security Solutions, Inc.
MSGI Security Solutions, Inc. is a leading international provider of proprietary security solutions to commercial and government organizations. MSGI is developing a combination of innovative emerging businesses that leverage information and technology with a focus on encryption technologies for actionable surveillance and intelligence monitoring. The Company is headquartered in New York City where it serves the needs of counter-terrorism, public safety, and law enforcement in the United States, Europe, the Middle East and Asia. More information on MSGI is available on the company's website at www.msgisecurity.com
About Woori Technology, Inc.
Woori Technology was established in 1995, and went public in 2000. Woori engineers are world-class experts in the areas of wireless systems, network design, manufacturing, processing technology and robotics. Their systems division specializes in nuclear power plant control and monitoring, and intelligent traffic systems. Woori is an affiliate of Digital Devices, Inc. an existing supplier to the Pentagon. |
