SEATTLE, May 14, 2009 (GLOBE NEWSWIRE) -- SARS Corporation (Pink Sheets:SARO) ("SARS" or the "Company") announces an agreement to acquire 49% interest in Kern Automotive Group, Inc. ("Kern Automotive"). Kern, a growing Georgia based pre-owned automobile distributorship, intends to employ SARS' tracking technology to more efficiently manage its inventory. Additionally Kern, which originates many of its loans for sale of its vehicles, will use SARS' technology to track the locations of vehicles for which financing payments become delinquent.
Under terms of the asset acquisition, SARS will incorporate an acquisition subsidiary that will exchange 100% of its equity for 49% of the outstanding equity of Kern and assist Kern in locating additional financing opportunities to increase Kern's inventory. SARS, in return, will have exclusive rights to place its tracking technology and services in each automobile that that Kern sells. Later, when Kern's customers repay the purchase loans on their automobiles, SARS will have a direct opportunity to up-sell additional services to these pre-existing customers. SARS' management views this agreement as a partnership that will provide an entry point into the automotive tracking business, while providing additional assets, in the form of automobile inventory, to its balance sheet.
Geoff Meagher, CEO of SARS, explained, "Over the last several months, we've begun to broaden our scope of potential revenue opportunities. Kern Automotive provides a first step in our plan to take greater ownership in the assets that we track."
Jake Kern, President of Kern Automotive, added "Since learning about how SARS technology and asset management data services could help improve my investor management and provide security on outstanding loans, I've been eager to create a partnership with SARS, and look forward to growing both of our companies."
About SARS Corp.
SARS Corp. designs, manufactures and maintains telemetry equipment and services for web-based remote monitoring/control of equipment, inventory and real-time asset location. SARS provides solution based systems that monitor and control water treatment facilities, effluent treatment facilities, LPG/refined fuel inventory systems, marine vessel tracking and vehicle tracking. Our systems include a monitoring and alarm service for marine piracy, equipment malfunction, violation of operating parameters (e.g. oil rigs move off station) and consumption based maintenance events. SARS utilizes various off the shelf products together with its own proprietary hardware to develop systems. Our back office systems can communicate with all available satellite systems, GPRS networks and local area networks. We have systems on all seven continents and four ocean regions. www.sarscorp.com.
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About Kern Automotive
Kern is a Georgia based distributor of pre-owned vehicles, with a particular focus on originating sub-prime loans, in house. With over 30 years of successful experience in the industry, its ownership and management believes that they have the necessary knowledge to expand their business.
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Safe Harbor Statement
This Press Release contains forward-looking statements, identified because the context of the statement includes the words such as SARS Corp. "expects," "should," "believes," "anticipates" or words of similar import. Forward-looking statements are subject to certain risks and uncertainties including the financial performance of SARS Corp. which could cause actual results, performance or achievements of SARS Corp. to differ materially from future results, performance or achievements expressed or implied by such forward-looking statements. Readers are cautioned not to place undue reliance on these forward-looking statements.
This Press Release does not constitute or form any part of any offer or invitation to sell or issue or any solicitation of any offer to purchase or subscribe for any securities in any jurisdiction, nor shall it (or any part of it) or the fact of its distribution form the basis of, or be relied upon in connection with, or act as any inducement to enter into, any contract or commitment therefore.
"Forward-looking statements," defined in Private Securities Litigation Reform Act of 1995, may be included in this press release. These statements relate to future events and/or our future financial performance. These statements are predictions and may differ materially from actual events or results. SARS disclaims any intention or obligation to revise any forward-looking statements whether as a result of new information, future developments or otherwise. Refer to documents by SARS with the Securities and Exchange Commission, which identify important risk factors that could cause results to differ in forward-looking statements, including, but not limited to risks associated with ability to (i) increase revenues, (ii) obtain profitability, (iii) obtain additional financing, (iv) react to actions of our competitors, (v) develop new services and markets for our services, remain in compliance with regulatory rules and regulations and to integrate such services with the products and services of our co-joint ventures and (vi) foresee and make necessary changes to our business strategies.