COLORADO SPRINGS, Colo., July 22, 2004 (PRIMEZONE) -- Maximum Dynamics, Inc. (OTCBB:MXDY), a projects management and back office services company with subsidiaries focused on technology solutions, mobile logistics and wireless communications, announced today that it has signed a revenue and profit sharing agreement with N-Cell (Pty) Ltd. (N-Cell), which is South Africa's first black economic empowerment (BEE) super dealer for Vodacom. As a super dealer, N-Cell has access to the full range of Vodacom's products including the reselling of airtime and network connectivity. Vodacom is one of South Africa's leading cellular Network Operators.
N-Cell is looking to target the under-served markets in South Africa, where it is aiming to sign up thousands of users for cellular prepaid and post-paid contracts and products. As a super dealer for Vodacom, N-Cell is entitled to high volume discounts for the bulk purchasing of airtime. As such, N-Cell approached Maximum for assistance in setting up solutions for its pre-paid airtime service offering. In particular, N-Cell is interested in providing mobile point of sale terminals to potential customers who can use the terminals for phoning as well as selling pre-paid airtime.
In the agreement, N-Cell and Maximum would split the profits generated on each terminal from the sale of Vodacom airtime every month. As more terminals are placed, Maximum's management believes the profits should increase due to increased volume discounts. At 1,000 terminals, Maximum's management estimates that revenues to Maximum would be just under $200,000 per month for pre-paid airtime alone.
In addition to revenue and resource sharing, the agreement commits N-Cell to purchasing 500 terminals from Maximum. The two companies have already worked together to arrange the financing and delivery of the first 100 terminals. The two companies have also started training each other's staff on respective product and service offerings.
"We have been working hard over the last few months to set up all of the relationships and necessary infrastructure so that we can generate revenues on the back-end of mobile point of sale terminals," said Joshua Wolcott, Maximum's CFO. "With the back-end systems we have put together, we estimate that 1,000 terminals selling just pre-paid airtime in medium to high volume locations should be sufficient to cover our global cost of operations. We also have applications for the sale of pre-paid vouchers for electricity and water. Our break-even point drops to about 675 terminals if the vendor is selling these services in addition to airtime. So, we are thrilled about our agreement with N-Cell and their first order."
"We see this agreement as the kick-off to our market penetration strategy and for Maximum's pre-paid solutions business," said Kgabo Badimo, N-Cell's Chief Executive Officer. "Our corporate philosophies and market strategies are aligned very well and we have already forged an excellent relationship with Maximum. We look forward to working with them to build a very profitable footprint as quickly as possible in South Africa and other parts of Africa where we see tremendous demand."
The two companies began discussions when they were introduced by a member of Maximum's advisory board, who saw that the two companies were targeting the same under-served market with complimentary products. By focusing on the under-served areas of South Africa and other parts of Africa, both companies stand to quickly take advantage of a market segment with few other market entrants.
For more information about Maximum Dynamics, please visit http://www.maximumdynamics.com.
For more information about N-Cell, please visit http://www.ncell.co.za.
This press release may contain forward-looking information within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934, and is subject to the safe harbor created by those sections. Maximum Dynamics assumes no obligation to update the information contained in this press release. Maximum Dynamics' future results may be affected by its ability to continue to provide solutions for its projects on which it currently works; its acquired real-time tracking technology; its acquired distribution rights for mobile point of sale solutions and other technology solutions it utilizes to service its projects; its dependence on procuring highly competitive logistics, point of sale, banking and energy contracts; its dependence on hiring and retaining qualified professionals; potential fluctuations in its quarterly operating results; its dependence on certain key employees; and its ability to timely and effectively integrate the businesses it may acquire.