Imagis Technologies responds to recent Canada
Stockwatch and New York Post articles
Thursday December 19, 12:54 pm ET
VANCOUVER, Dec. 19 /PRNewswire-FirstCall/ - The management of Imagis Technologies
Inc. ("Imagis") (OTCBB:IGSTF - News) responded today to two articles: the first written by Mr.
Lee Webb on December 13, 2002 in Canada Stockwatch, and the second written by Mr.
Christopher Byron as published in the New York Post on December 16, 2002. Both Mr.
Webb and Mr. Byron make statements insinuating that directors and investors in Imagis have
connections to alleged supporters of terrorism. Imagis categorically denies the allegations,
accusations, and innuendo contained in these articles. Imagis is not now - and never has
been - associated, either directly or indirectly, through any officer, director, or investor, with
any terrorist organization, individual terrorist, or individuals associated with terrorism.
Both articles are comprised of innuendo as
well as manipulative, jingoistic language. In
addition, the personal attacks on individual
directors of the Company are, in their nature
and content, attacks on Imagis. The articles
are the continuation of collaborative attempts
to create the impression through innuendo and
false association that illicit activities are being
sanctioned. Imagis has referred the matter to
its litigation counsel for advice and possible
further legal action to protect its shareholders
and its business. In the meantime, Imagis will
continue to focus on growing its business.
To keep matters in perspective, it should be
noted that Mr. Byron is currently being sued by
Imagis in the Supreme Court of the Province of British Columbia. The Company alleges an
article Mr. Byron wrote about Imagis, and which was subsequently published in Red Herring
magazine, libeled Imagis. Furthermore, the person known as Lee Webb has published a
series of 42 mostly repetitious articles in Canada Stockwatch pertaining to Imagis to date,
with the imputations in each one often becoming more sensationalistic and outlandish than
the one preceding it. The latest mudslinging attempts border on the farcical. These articles
taken as a whole appear to be calculated to damage Imagis' reputation in the law
enforcement and security communities. Imagis considers the attempts to damage the
company and thereby injure its shareholders shameful, especially in light of the fact that the
Company has commercially-proven technology that can and is being deployed in critical
situations to combat crime as well as greatly assist law enforcement in general. Imagis'
solutions are beginning to gain widespread adoption in the law enforcement sector all over
the world and are making valuable contributions to policing and security efforts.
In summary, Imagis responds to the articles as follows:
Mr. Byron states that Imagis, "has a software program for picking terrorists out of crowds at
airports." This vastly understates the power and application of Imagis' technology. Imagis'
biometric facial recognition software is designed to catalogue and search databases of
images and find the closest match to an image submitted to the software. One application of
the software, amongst many, is airport security. Neither Mr. Webb nor Mr. Byron appear to
have made any attempts to learn the capabilities of Imagis' technology. When Mr. Byron was
invited to visit the Company and to review its technology firsthand, he stated, "Let me be
clear.... I have no interest in or capacity to analyze anything involving the technology more
complicated than a lead pencil."
An important part of Imagis' plan to grow its business is to acquire Briyante Software Corp.
("Briyante"). Briyante has developed patent-pending software that allows the sharing of data
between disparate databases. The software is currently installed in three law enforcement
agencies in the United States where it is successfully contributing to the identification and
arrest of criminals. It has become apparent to Imagis and its business partners that this ability
is critical to the widespread acceptance of Imagis' technology in law enforcement, security,
and related markets.
Mr. Byron claims the merger of Imagis and Briyante is typical of "penny stock" transactions in
Canada and that it is the result of lax Canadian securities laws. In fact, the merger has yet to
be approved by the shareholders of Briyante and by the Canadian securities regulators.
Both Mr. Webb and Mr. Byron state Mr. Altaf Nazerali and Mr. Pierre Besuchet were
Directors of Even Resources Ltd. ("Even"), a predecessor company to Briyante and one
which had links to certain Saudi Arabian entities. Leaving aside the fact that the events in
question took place over a decade ago, the simple facts are that Even was granted an
Exploration Permit to evaluate a large copper deposit in Saudi Arabia in the early 1990s.
The copper deposit was discovered by the United States Geological Survey and a French
BRGM (at the time an agency of the French government), operating under contract to the
Saudi government. Even, subsequently entered into a memorandum of understanding with
Alujain Corporation ("Alujain"), a large Saudi industrial group, to develop the mineral deposit
contingent upon a concession being granted by the government of Saudi Arabia. The
concession was never granted and Even abandoned negotiations in the mid-1990s. The
intended suggestion by Mr. Webb that Messrs. Nazerali and Besuchet being former
Directors of Even is evidence of Imagis' association with terrorists is ridiculous.
In repeated articles Mr. Webb has linked Mr. Nazerali to a Mr. Irving Kott and First
Commerce Securities ("FCS"). Mr. Nazerali has advised Imagis that three companies
associated with him were awarded three judgments in 1988 in the Luxembourg courts stating
that the allegations made by FCS's receiver in bankruptcy who initiated these legal actions in
1987 were unfounded, dismissing the claims in the process. Mr. Webb has not mentioned
this. Furthermore, these allegations were investigated by the regulatory authorities when Mr.
Nazerali first applied to be registered under the Securities Act of British Columbia. Mr.
Nazerali subsequently became a registrant and has operated in this jurisdiction for over a
decade with an unblemished regulatory record.
Furthermore, Mr. Webb has continually attempted to link Mr. Nazerali to the Bank of
Commerce and Credit International ("BCCI") leaving the impression that he was involved in
the dealings leading to the bank's collapse. Mr. Nazerali's only association with BCCI was as
a customer. Any imputations to the contrary are utterly false.
Mr. Webb claims that much of Imagis' financing comes from "offshore backers." This is
incorrect. While some of the initial funding for Imagis came from non-North American
investors, the majority of funding has been raised from Canadian and US investors by way of
private placements. These private placements, the investors, and the monies raised are all
documented in regulatory filings. In prior articles about Imagis written by Mr. Webb, he has
made extensive reference to Imagis' regulatory filings. Why he did not check Imagis' filings
relating to its financings, or if he did, why he characterizes Imagis as a mostly
foreign-financed entity remains an unanswered question.
Mr. Webb makes mention of Valor Invest Ltd. ("Valor"), describing it as "Mr. Nazerali's
Swiss-based Valor Invest Ltd." This suggests Mr. Nazerali controls Valor. In fact, Mr. Nazerali
is only a Director of Valor. Mr. Nazerali, as a Director of both Imagis and Valor does not vote
on any matters involving Valor's holdings of Imagis shares, nor does he have any beneficial
ownership in any such shares, a matter which has been publicly disclosed as are his direct
and indirect holdings of Imagis shares.
Mr. Webb notes Harpings Management Inc. ("Harpings") was an early investor in Imagis. Mr.
Webb then describes Harpings' investment in an unrelated company, M.I.T. Ventures
Corporation ("M.I.T.") several years prior to its investment in Imagis. M.I.T. subsequently
received investments from several offshore investors, one of whom is alleged by the US
Treasury Department to have links to terrorists. Mr. Webb then draws by way of innuendo and
many degrees of separation an association between Imagis and terrorists based on
Harpings having invested in both Imagis and M.I.T., long before M.I.T. received monies from
the alleged terrorist linked financial group. In so doing, Mr. Webb attempts to establish a link
between Imagis and terrorists. His motive is as transparent as his logic is flimsy.
Both Mr. Webb and Mr. Byron proceed to state that Mr. Pierre Besuchet is a Director of Valor
Invest Ltd., Faisal Finance (Switzerland) S.A. ("Faisal"), and Dar-al-Maal al Islami S.A.
("DMI"). Both Mr. Webb and Mr. Byron are in error. Mr. Besuchet has not been a Director of
DMI for several years. Mr. Webb states DMI has been named in a class action lawsuit filed
on behalf of the victims of the September 11 attacks. Mr. Webb relies on quotes from the
class action filing to describe alleged connections between DMI subsidiaries and some of
their officers and directors and Middle Eastern terrorists. Although Mr. Webb acknowledges
that the class action lawsuit only contains allegations that have never been proven in a court
of law, he still attempts to imply Imagis is associated with Middle Eastern terrorists because
Mr. Besuchet is a Director of Valor and Faisal. As previously noted Mr. Besuchet has not
been a Director of DMI for several years, and in fact, is a well respected senior- banking
executive who has assisted in the financings of many companies. Even if Mr. Besuchet was
currently a Director of DMI, the assertions of Mr. Webb and Mr. Byron can only be described
as unfounded. There is no connection between Imagis and any terrorists.
Mr. Webb's article of December 12 also repeats certain false allegations about Mr. Revell,
Imagis' Chairman, knowing full well that the original publisher of these allegations had
withdrawn from circulation the book in which these allegations were made and had
consented to destroy all copies. This is another shameless, highhanded, and desperate
attempt to discredit Imagis by attacking Mr. Revell. Mr. Revell, one of the most honored and
highly- decorated officials in the FBI's history, has served his country, the United States, with
dedication and distinction for over 40 years. Attacking a man of Mr. Revell's public record
and stature as part of an attempt to discredit Imagis is not fair and is hardly responsible
journalism.
The sheer number and volume of repeated attacks on Imagis and several of its Directors,
and the continued reliance on defamatory innuendo as well as manipulative and emotive
language, factual inaccuracies, and false association raises questions as to the true motives
of the authors of these articles. As well as having referred the matter to its counsel for further
legal action, Imagis intends to bring these concerns to the appropriate regulatory authorities.
About Imagis Technologies Inc.
Imagis Technologies Inc. (OTCBB:IGSTF - News) develops and markets identification
systems and database management applications based on advanced biometric face and
image recognition technologies. This includes identification and security solutions for use in
law enforcement and public safety, airports, customs and immigration, driver's licenses and
passports, and other government agency and private-sector initiatives.
The Company has over 140 installations of its software located across the United States, The
United Kingdom, Canada, Latin America, and Asia Pacific. For more information about
Imagis Technologies Inc., please visit the company online at
imagistechnologies.com
ON BEHALF OF THE BOARD OF DIRECTORS
"Iain Drummond"
President & CEO, Imagis Technologies Inc.
CONTACT:
Michael O'Connor Typhoon Capital Consultants
Director of Investor Relations Sanjay Sabnani
Tel: +1.604.684.2449 President and CEO
michaelo@imagistechnologies.com Tel: +1.310.349.2245
sanjay@typcap.com
biz.yahoo.com
steve |
