HADERA, Israel , March 16, 2005 (PRIMEZONE) -- Malers Automation and Control Ltd. ("Malers") (Pink Sheets:GXXL), after finalizing its strategic partnership agreement with Automatic Service, expects to not only see a general growth in revenues, but also a notable increase in the ticket price of systems and projects developed.
Malers entered into this agreement with Automatic Service, a privately held automation and control company founded in 1990 and located in Ryazan, a region of Russia just south of Moscow. In working with Automatic Service, Malers will now have direct access to the over 30% of Russia's existing oil refineries that are in need of system overhauls. In addition, the two companies have targeted power stations and heavy industry throughout the country as secondary vertical markets.
Ronen Luzon, CEO of Malers, is optimistic of this Israeli-Russian alliance, "Both companies excel in designing projects and creating new systems. Up until now, our average price tag for a system would run anywhere from tens of thousands of dollars to hundreds of thousands of dollars and projects would garner revenues in the hundreds of thousands of dollars. Now, in working with Automatic Service, we expect to take on larger projects with appreciably higher value."
Turnaround time for turn-key projects takes an average of around 12 to 16 months, while systems can take only a few months, from design to installation. The Company is equipped to design, manufacture, sell and service the most complex of systems and projects. Malers' proficiency in the automation and control field continues to expand and deepen.
As a result, Malers' business development efforts bring about positive results. Their team of professionals works closely with the Company's existing client base of pharmaceuticals, heavy industry, plastics and more, which often leads to new sales opportunities. In addition, their marketing team is always on the lookout for leads through announcements of new builds of power plants and industrial facilities.
Costly human error in processing industries is often a major impetus for companies to look for automated solutions. The Company's core strengths lie in its ability to build out systems and projects that are process-intensive industries with complex requirements, ranging from remote data collection and monitoring to real-time analysis and control of multifaceted processes.
The agreement with Automatic Service is viewed as a template for future strategic partnerships that the Company plans to create in the coming months. These combined efforts will give Malers the ability to expand its horizons both in marketing and operations, thereby increasing the value of the Company.
About Malers
Malers Automation and Control Ltd. is an Israeli systems company that develops, manufactures, sells and maintains automation and control systems for industrial applications. The Company produces turn-key systems that replace labor intensive, error prone and costly manual production and monitoring functions. Since the Company's inception in 1996, Malers' custom designed systems have been installed in major industrial applications worldwide. Their systems offer centralized and remote control of complex manufacturing processes, and data collection and analysis systems.
For more information, please contact Ronen Luzon, at 011-972-54-477-5656 or malers-a@malers-automation.com or visit us on the Web at www.malers-automation.com.
Forward-Looking Statements
Certain statements in this news release may contain 'forward-looking' information within the meaning of the Federal securities laws. All statements, other than statements of fact, included in this release may include forward-looking statements that may involve risks and uncertainties. There can be no assurance that such statements will be accurate and actual results and future events could differ materially from those anticipated in such statements. The Company undertakes no obligation to update forward-looking statements to reflect subsequently occurring events or circumstances or to reflect unanticipated events or developments.