Arete Industries' Incubator Partner Announces the Signing of a New Agreement Expanding VerbalTech Labs Into Voice Recognition and Intelligent Robotics
BOULDER, Colo., Nov. 15 /PRNewswire/ -- Arete Industries, Inc. (OTC Bulletin Board: AREE) announced that on 11/13/00, Arete and Applied Behavior Systems, LLC ("ABS"), co-founders of VerbalTech Labs, Inc. ("VTL") have signed a new agreement that completely refocuses the business into a new venture. The new venture will focus on the full implementation of ABS' patented and fully integrated neural network and genetic algorithm technology with applications in voice recognition, vision recognition and intelligent robotics, beyond its current language learning application for developmentally disabled children.
In mid-September, VTL completed a working prototype of its "interactive teacher" software program. The prototype successfully demonstrated the ability to integrate the intelligent agent and the voice recognition software into an effective method of teaching language.
Tom Gorman, CFO and Director of Arete, who is managing this investment relationship for Arete stated, "The speed with which the prototype was created by VTL's design team and the quality of the voice recognition features of the interactive teacher prompted us to explore other applications beyond education and language. As a result, we discovered that in new industries like speech recognition and intelligent robotics, the technology could be applied to create valuable products and/or licensing opportunities."
Gorman continues, "We will remain focused on completing the language learning program for developmentally disabled children. However, if the early research is correct, the patented technology could be developed into applications that could significantly expand our ability to create value for our shareholders. For example, the ability to identify the words spoken from an independent speaker without training is competitive with the technology that launched two recent IPOs, Nuance Communications, Inc. (NUAN) and SpeechWorks International (SPWX) that are currently being traded at approximately 100 times estimated 2000 sales.
We may be limited to licensing and joint venture opportunities with the voice recognition applications, but we could be a market leader in consumer robotics, an industry some think will be the next hot thing."
Arete Industries has been working closely with the principals of VTL to determine the best direction of the company given this new information, and has transformed its relationship from an agency one into that of a principal. The new agreement is a pre-incorporation agreement that merges VTL into a new venture. It expands Arete's interest to 15% of the new venture, and expands the scope of the technology to include all facets of the intelligent agent technology necessary to develop applications for language and learning, voice recognition, vision recognition, intelligent robotics and related applications.
"This is an important step in the development of the technology that I have been working on for seventeen years," comments Bill Hutchison, Chief Scientist of VTL. "As one of the early pioneers of neural networks, I previously didn't have the tools to demonstrate how we can integrate vision, speech and action into a robot that has a human-like interface. However creating the interactive teacher opened our eyes to what complementary technology is now available and the significant impact our technology could have on several budding industries."
Ken Stephens, President of VTL stated, "The interactive teacher prototype demonstrates the type of breakthrough technology we are capable of developing. Now we need to reposition ourselves to do it again in voice recognition, vision recognition and robotics. This is a tremendous opportunity for our company. The next step is to bring it all together and make some significant strides forward in this new direction."
VerbalTech Labs, Inc., based in Boulder, CO, is an incubator partner of Arete Industries, Inc. While Arete Industries is working with VerbalTech to develop its products, it is currently launching Arete Outdoors, which has several new and unique products in the alpine recreational sport market niche (See: www.areteoutdoors.com).
Safe Harbor Statement under the Private Securities Litigation Reform Act of 1995: Certain statements contained herein which are not historical are forward-looking statements that are subject to risks and uncertainties not known or disclosed herein that could cause actual results to differ materially from those expressed herein. SOURCE Arete Industries, Inc. -0- 11/15/2000 /CONTACT: Thomas Y. Gorman, CFO of Arete Industries, Inc., 303-247-1313, tgorman@areteindustries.com; or James Stock of Stock Enterprises, Inc., 702-614-0003, ir@areteindustries.com, for Arete Industries, Inc./ /Photo: NewsCom: newscom.com AP Archive: photoarchive.ap.org PRN Photo Desk, 888-776-6555 or 201-369-3467/ /Web site: areteoutdoors.com /Web site: areteindustries.com -- LAW123 -- 9697 11/15/2000 17:08 EST prnewswire.com Copyright PR Newswire 2000. All rights reserved. |
