20th Apr 2006 10:12
Servocell Group PLC20 April 2006 SERVOCELL GROUP ("THE GROUP " or "THE COMPANY") Servocell develops proprietary devices under the Active Latch brand that can control the movement or motion of mechanisms, such as locks, with low energy inputs Servocell Group is pleased to announce that it has entered into an agreementwith Passtech, one of Korea's leading RFID lock makers. Under this agreement, Servocell will provide Passtech with technical support tofacilitate the development and manufacturing of a Radio Frequency Identification(RFID) controlled Active Latch operated lock for the Korean market. Passtechwill have an exclusive license for the use of Active Latch in RFID productswithin Korea, as well as reseller rights to other manufacturers. Passtech, which will become one of Servocell's ProActive partners, expects massproduction of its new product to begin in October 2006. Under the terms of the agreement, exclusivity will be extended beyond an initialeighteen period if Passtech successfully launches its Active Latch based RFIDproduct before the end of 2006 and purchases a minimum of 30,000 Active Latchesduring the initial eighteen month period. Passtech have entered into thisarrangement because they are confident of exceeding this requirement. Simon Powell, CEO of Servocell commented:- "I am delighted that we are working with Passtech, which is a new client winpost our recent successful flotation. This contract endorses the strength of ourtechnology as well as indicates the growing awareness of the Active Latchsolution. Korea is an important market because it is a centre of excellence foradvanced access control, as well as a burgeoning domestic market for suchtechnology. The Passtech deal is another step in our promotion of the benefitsof Active Latch applications to Global lock manufacturers and I look forward toupdating shareholders on further progress in due course" Enquiries: Servocell Group Simon Powell, CEO 01279 621 500 Steven Weaver , CFOBell Lawrie Ian McInally 0141 221 7733Biddicks Shane Dolan 0207 448 1000 Note to editors: Servocell's Active Latch devices are based around piezo actuators thattraditionally have high cost and limited movement. Through the application ofnovel techniques in design and manufacture, Servocell's products generaterelatively large movements and motion with low energy inputs. Active Latches aredesigned to provide lock manufacturers with a finished module that can be easilyintegrated into their product suite. Servocell's Active Latch products have already been commercially launched andtarget the expanding electromechanical sector of the global locks markets, whichis valued at $30 billion in annual sales. Servocell's current product suite consists of:- * Active Latch 1 (AL1) - released in September 2003; and* Active Latch 2 (AL2) - released in September 2005. This information is provided by RNS The company news service from the London Stock ExchangeRelated Shares:
Servelec Group