Telepanel And IBM Enter Strategic Alliance To Provide ESLs Through A Worldwide Marketing Agreement
TORONTO, CANADA--Telepanel Systems Inc. (TSE:TLS and OTC:TLSXF),
the leader in electronic shelf label systems for retail stores,
announced that IBM has entered into a four-year, renewable,
worldwide, remarketing agreement under which IBM will sell
Telepanel electronic shelf labels as its electronic shelf label
product.
This new, expanded alliance culminates a seven year relationship
with IBM during which Telepanel has evolved its leading, wireless
ESL product while IBM has assisted its customers with retail
automation to take advantage of a full function electronic shelf
label. "This is a company defining transaction which validates
Telepanel, our technology, and the ESL world market," said Chris
Skillen, President and CEO of Telepanel. In anticipation of this
agreement, IBM and Telepanel have been actively marketing the ESL
solution to major retailers in both North America and Europe.
Under the terms of the agreement, Telepanel is providing IBM with
exclusive world marketing rights for its electronic shelf label
products and IBM is responsible for actively marketing, selling,
and supporting Telepanel products to retailers worldwide using its
resources. The agreement allows Telepanel's existing remarketers:
Fleming, SuperValu, Bozzuto's and Riva to work directly with
Telepanel to continue to meet the needs of their customers.
This relationship provides IBM customers with the combined
advantages of IBM's scope and retail expertise and Telepanel's
cost effective leading ESL Technology and advanced marketing
techniques. It also anticipates joint development by augmenting
Telepanel's engineering capabilities with the substantial R & D
expertise at IBM. Through this alliance, IBM is providing
Telepanel with $1.6 million to further develop Telepanel offerings
and its technologies.
"This new relationship with IBM Retail Store Solutions through
both a distribution and technology alliance provides the best
possible ESL solution to the marketplace," said Chris Skillen.
"IBM is the dominant retail automation vendor to the ESL target
market. The scope and technology advantages both companies bring
to the arrangement allow us to achieve both the price point and
technology to continue to precipitate and lead the multi-billion
dollar ESL market."
Mr. Skillen went on to say, "the ESL sector is ready, it is a very
large, self-evident market whose time has come. The early
dissipation of Y2K issues will further accelerate market
acceptance. Pricing accuracy, increased number of price changes,
advanced merchandising techniques and scarce labor are the main
drivers of the need for ESLs."
Telepanel is the leader in developing wireless electronic shelf
labeling systems for retail stores. Telepanel display modules are
placed on the edge of store shelves to show a product's price and
other information. Prices are changed by a radio communications
link to the store's cash registers, to provide accurate and
up-to-date pricing.
Telepanel's new proprietary Millennium PLUS technology delivers to
the market an advanced, wireless, high bandwidth, radio frequency
communications technique that makes use of unlicensed
communications bands in North America and Europe. Millennium PLUS
leads the industry in low cost, reliable, high throughput
communication to tens of thousands of wireless devices within each
customer space.
Approximately 2,000,000 Telepanel wireless display modules are
presently installed and operating throughout the United States,
Canada, and in Europe. Telepanel installations are at such
premier supermarkets and warehouse chains as Adam's Super Food
Stores, A & P, Stop & Shop, Loblaws, Big Y, Reasor's, Wakefern,
Grand Union, Sam's Clubs, Shaw's, Brown's, Doll's, Berks,
Ellington, Port Richmond, Stew Leonard's, Champion, Leclerc,
Intermarche, SPAR, and Super U and at Universal Studios,
Hollywood.
This press release includes forward looking statements as defined
in the Private Securities Litigation Reform Act of 1995.
Forward-looking statements do not constitute historical facts and
involve risks and uncertainties, including, but not limited to,
the possibility that adverse economic or other factors may cause
actual results to be materially different than current estimates
and projections. Additional detailed information concerning a
number of factors that could cause actual results to differ
materially from the information contained in this press release is
contained in the reports and other documents of Telepanel filed
with the Securities and Exchange Commission from time to time.
-30-
FOR FURTHER INFORMATION PLEASE CONTACT:
In Canada -
Chris Skillen
President & CEO
Telepanel Systems Inc.
(905)-477-7877
or
In the US-
Irving Straus
Straus Communications
(212)-768-2477
or
Mallory Factor
Mallory Factor Inc.
(212)-350-0000
--
Internet: www.telepanelsystems.com
The bolded quote reminds me of the numerous rosey projections we have enjoyed during recent annual meetings. I guess even slot machines pay something out eventually. I wonder why IBM is paying them the $1.6 million. Is it revenue, debt or dilution? |
