PASADENA, Calif., Dec. 11, 2006 (PRIME NEWSWIRE) -- Axium Technologies, Inc. (Pink Sheets:AXGI) is pleased to announce that R2W, Axium's representative in Las Vegas, has recently executed contracts to provide a total security and surveillance solution to Silver State Schools Credit Union (SSSCU), one of the largest credit unions in Nevada, with 18 locations in and around Las Vegas. The solution includes installation of cameras and DVR monitoring equipment in all 18 SSSCU locations and in three new locations scheduled to open next year. The solution allows for local or centralized monitoring of each facility. The Axium solution was chosen for superior design, picture quality and low maintenance. The Axium solution allows for storage of 90 days of images without the need to do additional maintenance required by VHS and other solutions. SSSCU believes that the savings in storage and maintenance costs alone make this a cost-effective solution, with the capital cost anticipated to be recovered by SSSCU in the first 12 months. It is expected that this project alone will yield between $1.0 and $1.2 million in revenue to Axium within the next 12 months.
Axium is also working with R2W to provide solutions for the casino gaming industry in Las Vegas. The primary solution offered by Axium replaces existing VHS analogue recording technologies with the Axium, multi-channel standalone digital DVR solution. To date, Axium products have been certified in four (4) casinos, by the Nevada Gaming Control Board for surveillance of their gaming rooms. Axium's DVR is the first standalone DVR in the Las Vegas gaming industry that has passed all of the rigorous inspection and testing certifications required by the Nevada Gaming Control Board. Axium is currently in discussions with several other casino's regarding the use of this standalone solution. This business alone is estimated to generate a minimum of $2.6 million in revenue during 2007.
Won Soo Chung, CEO of Axium in describing these developments, stated, "We are very pleased with the progress that we have made in the casino industry since our first client, one of class A casino in Las Vegas, received its certification of our security platform by the Nevada Gaming Control Board. Our system is a substantial improvement over the security systems used by the casino industry, which still employs antiquated VCR taped surveillance. Since there is a requirement to maintain the video tapes for minimum of seven days, the cost savings on tapes, storage and personnel by switching to our DVR system more than justifies the capital costs associated with our system. Furthermore we are gratified by the trust that Silver State Schools Credit Union has shown to us by selecting our systems to provide for its comprehensive security needs. We intend to make penetration of the financial services market one of our major goals in 2007. What we are quite pleased with is that all of this business has been generated by "word of mouth" and referrals, and our customer acquisition costs for this business has been very low. Numerous other contracts and proposals are being finalized and we look forward to announcing substantial additional business in the near future."
About Axium Technologies Inc.
Axium Technologies, Inc is a leading provider in surveillance security systems software and hardware. The company maintains its corporate presence in Pasadena, Calif. and its research and development facility in South Korea.
The Company's primary products include MAXIMUM Surveillance Software, which is the key solution providing interoperability for numerous digitalized security and surveillance products from diverse manufacturers. The Company's Digital Video Recorders (DVRs) and Network Video Products (NVPs) are targeted at the security and surveillance segment of the gaming industry. The Company's newest product, "Tagger Trap," is a state-of-the-art graffiti detection product that detects and alarms local police of graffiti activity. The estimated cost of graffiti clean-up in North America is projected at $1.0 billion annually. Millions of dollars have been budgeted in the past year by large metro police departments to detect and apprehend graffiti taggers.
During 2006, Axium Technologies redeployed much of its resources, both fiscal and headcount, to complete development of its current suite of products. In doing so, its 2006 revenue projections are $1.04 million, with revenues for 2007 projected to be $8.8 million, with gross margins of approximately 57% of revenues.
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Forward-Looking Statement: This press release contains forward-looking statements, including expected industry patterns and other financial and business results that involve known and unknown risks, uncertainties and other factors that may cause our actual results, levels of activity, performance or achievements to differ materially from results expressed or implied by this press release. Such risk factors include, among others: the sustainability of recent growth rates in the Security and Surveillance industry; the positioning of Axium products in the market; ability to integrate acquired companies and technology; ability to retain key employees; ability to successfully combine product offerings and customer acceptance of combined products; general market conditions, fluctuations in currency exchange rates, changes to operating systems and product strategy by vendors of operating systems; and whether Axium Technologies can successfully develop new products and the degree to which these products gain market acceptance. Actual results may differ materially from those contained in the forward-looking statements in this press release.