30th May 2006 07:02
Telit Communications PLC30 May 2006 Press Release 30 May 2006 Telit Communications plc ("Telit" or "the Company") South Korean acquisition strengthens Telit's global presence Telit Communications plc (AIM:TCM.L), the global wireless communicationsdeveloper and distributor, is pleased to announce the acquisition of 75% ofBellwave m2m Co. Ltd, the machine to machine ("m2m") division of Bellwave Co.Ltd ("Bellwave"), a South Korean wireless communications developer, in a cashtransaction totalling US$6.18 million. Bellwave's m2m business has generatedsome US$21 million revenue in 2005 with dominant market share in South Koreaclose to 50%. Bellwave Co. Ltd will retain the remaining 25% of Bellwave m2m, however, Telitholds a call option to purchase the remaining 25% for US$2 million exercisableuntil December 2006. Bellwave m2m business has a net asset value ofapproximately US$2 million. Bellwave m2m, which developed and marketed the world's smallest CDMA datacommunications module, has currently 40 employees the majority of who areengineers. The company will focus on the development of CDMA 1X and EVDOproducts for Asian and American markets and the development of WCDMA/UMTSproducts for global distribution. The company will also serve as Telit's salesgateway to the emerging Asia Pacific markets for both CDMA and GSM/GPRS productlines. Commenting on the acquisition, Oozi Cats, Chief Executive of TelitCommunications, said: "The combination of Telit's and Bellwave m2m's expertisebrings many synergies and benefits, most noticeably in product range andgeographical presence. Bellwave m2m brings to Telit a solid customer base inthe Korean market and depth of experience in the CDMA market that will create astrong gateway to expand Telit's presence in the Asia Pacific and US markets.Telit already has distributor network in place that covers a majority ofworldwide markets. The combination of the two entities will create a new forcein the m2m market, capable of servicing all CDMA and GSM and in a future alsoWCDMA markets, on a global basis." The transaction is subject to customary closing conditions and is expected tocomplete during June 2006. - Ends - For further information: Telit Communications plc Tel: 00 39 040 419 2491Oozi Cats, Chief ExecutiveMerav Zimerman, CMO Tel: +97 237 914 [email protected] www.telit.com Media enquiries: AbchurchChris Lane / Laura Riascos de Castro Tel: +44 (0) 20 7398 [email protected] www.abchurch-group.com Notes to Editors Telit Communications plc is a global business specialising in innovativecustomised mass production solutions for cellular communications. The Companyhas two distinct business operating divisions leveraging on its coreintellectual property and know how: Wireless Solutions Business Unit which designs, develops, manufactures, marketsand sells a range of data cellular communication products for the machine tomachine ("m2m") market. The Company's technology and products enable otherelectronic devices and equipment manufacturers to utilise the widely deployedGSM/GPRS cellular infrastructure to relay and accept information without humanintervention. Telit owns its own protocol stack and supplies A-Z solutions forthe m2m market. The Enhanced Value Added Reseller ("EVAR") Business Unit which customises anddistributes to mobile operators and to independent retailers, under therecognised brand "Telit", ODM's and OEM's cellular products, utilising itsextensive in-house research and development resources. Global System for Mobile Communication (GSM) GSM is a digital cellular phone technology that is the predominant system inEurope, but is also used around the world. Developed in the 1980s, GSM wasfirst deployed in seven European countries in 1992. Operating in the 900MHz and1.8GHz bands in Europe and the 1.9GHz PCS band in the U.S., GSM defines theentire cellular system. Code Division Multiple Access (CDMA) CDMA requires fewer cell sites than the GSM digital cellphone system andprovides three to five times the calling capacity. Providing more than tentimes the capacity of the analogue cellphone system (AMPS), CDMA has becomewidely used in North America. CDMA transmission has been used by the militaryfor secure phone calls. This information is provided by RNS The company news service from the London Stock ExchangeRelated Shares:
TCM.L