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Gold/Mining/Energy : RDM Corporation -- Ignore unavailable to you. Want to Upgrade?

To: Robert van Mil who wrote (398)	6/21/2000 10:39:00 AM
From: caly	Read Replies (1) \| Respond to of 693

RDM put out this release yesterday. I completely missed it. Tuesday June 20, 11:28 am Eastern Time Company Press Release SOURCE: RDM Corporation RDM's ePayment Subsidiary, Xign Inc., closes $3 Million U.S. Financing LEWISTON, N.Y., June 20 /PRNewswire/ -- CVF Technologies Corporation's (Amex: CNV - news) holding -- RDM Corporation (CDNX: RC - news) today announced that its ePayment subsidiary Xign Inc. (Xign) has closed a $3 million U.S. financing with a U.S. based investor. RDM formed Xign earlier this year to focus on the market opportunity for electronic payment solutions and services. The investor has purchased 2,835,000 preferred shares for $3 million U.S. Each preferred share is convertible one-for-one into a common share of Xign. As well as providing financing, the investor has agreed to join the Board of Directors of Xign. At the close of the financing, the investor will hold approximately 16% of Xign and RDM will hold 76% of the company. To view the Xign news release regarding this financing, see their web site at xign.com or click here xign.com . ``We are very pleased with the successful spin-out of RDM's eCheck technology into Xign and the endorsement received through the early financial support by a knowledgeable U.S. investor,'' said Michael Carr, RDM's President and CEO. ``The establishment of Xign as a separate business unit focusing on the provision of ePayment technologies is part of our strategy to build significant shareholder value over the long term by building RDM into one of the foremost sources for e-commerce technology solutions and services.'' Robert Nally, Chairman of the Board of Directors of Xign and RDM, said, ``The initial financing will be used to support Xign's plans for a commercial electronic payment service'' and further stated ``Xign is sourcing additional investment to support an aggressive growth plan.'' Mr. Nally also acknowledged the critical roles of the U.S. Treasury and Federal Reserve as early users of the technology. ``Their foresight in recognizing the value of the electronic check technology, their perspective as users and their contribution to the evolution of the technology has been invaluable.'' Jeffrey Dreben, President & CEO of CVF Technologies Corporation, stated that, ``It is encouraging to see that our early support of the RDM vision 2-1/2 years ago when it was much less developed is now bearing fruit. We are also pleased with the leadership role that our investment banker, Chatsworth Securities, took in structuring the Xign financing and business relationship.'' About Xign Inc. To position Xign to address the enormous electronic payment market, RDM has assigned to Xign Inc. all rights in RDM intellectual property relating to its ``eCheck'' payment technology. Through this transfer Xign obtains source code and exclusive rights to three key elements of RDM payment technology: -- "Payer" software that creates the electronic equivalent of a paper check-the electronic check is first digitally-signed to provide data integrity and to allow the recipient to verify the source and then encrypted for privacy prior to transmission; -- "Payee" software that receives, decrypts and validates the electronic checks and creates an electronic deposit instruction, also digitally-signed and encrypted; and -- "Processor" software that receives, decrypts and validates the deposit instruction and originates a funds transfer. RDM's software, now the property of Xign, is used by the U.S. Treasury to e-mail digitally-signed, encrypted electronic checks to participating Government vendors. These vendors use the ``Payee'' software to receive, decrypt and authenticate the electronic checks. Then, by simply clicking a ``deposit'' button, the vendor initiates the creation and transmission of a digitally-signed, encrypted deposit instruction enclosing the electronic checks. That transmission is sent by e-mail to the U.S. Treasury's processor -- in this case the Federal Reserve Bank of Boston. Earlier this year, RDM delivered its first Deposit Instruction processor to the FRBB. This has been tested and is now being used to process live transactions. Xign plans a commercial service to supply businesses with its secure ePayment technology and to process deposit instructions. In 1999 alone, US businesses wrote approximately 40 billion paper checks and this number is expected to grow annually. Business-to-business e-commerce is expected to be worth US$1.3 trillion by 2003. Xign believes its growth could exceed growth in the use of the Internet for b2b transactions since its technology is attractive to businesses regardless of whether they are doing e-commerce or traditional commerce. About RDM Corporation RDM develops and provides electronic check conversion systems and web-based payment archive services to retailers, banks and government agencies, as well as print quality control technologies to banks, printers and payment processors in over 35 countries. Through Xign Inc., RDM provides ePayment technology to businesses that allow them to safely e-mail digitally-signed payments over the Internet. RDM Corporation is a public company listed under the symbol ``RC'' on the Canadian Venture Exchange. CVF Technologies Corporation, RDM's largest non-management shareholder, which owns approximately 16% of RDM Corporation, is headquartered in Lewiston, New York. CVF is a technology development company with a focus on e-commerce whose principal business is sourcing, funding and managing emerging pre-public technology companies with significant market potential. Certain statements made in this press release which are not historical facts are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Investors are cautioned that these statements involve risks and uncertainties, which may cause actual results or achievements to be materially different from any future results or achievements expressed or implied by the forward-looking statements. SOURCE: RDM Corporation