PASADENA, Calif., Dec. 19, 2006 (PRIME NEWSWIRE) -- Axium Technologies, Inc. (Pink Sheets:AXGI) -- is pleased to announce the signing of a Memorandum of Understanding with CNB Technology Inc., one of the leading surveillance products manufacturers in Korea (listed on KOSDAQ: 086200). According to the terms of the MOU, CNB Technology will license Axium's Maximum software as the standard surveillance monitoring software for all of CNB's IP addressable products, including DVRs and IP cameras. CNB shall provide Axium with its hardware at favoured nation's prices, while Axium will provide CNB with favourable terms regarding software license fees. Both companies will also jointly market CNB products.
Mr. BS Yoo, the President and CEO of CNB Technology in describing the agreement stated: "It is a perfect marriage between two substantial hardware and software companies. Last year, CNB achieved $46 million sales, and we expect to increase our sales to a minimum of $64 million this year. CNB has been searching for a software program like Maximum for some time that will provide our customers with a unified software platform, thereby eliminating compatibility and inter-operability problems inherent in other various digitalized surveillance products. We are sure that the utilization of Maximum will expedite revenue growth at our company, as well as substantially enhance our profits. With the integration of Maximum into our hardware, we expect our sales to exceed $100 million in 2007."
Axium plans to complete the integration of CNB's hardware into Axium's software by the end of June, 2007. It is expected that Axium will generate between $2-5 million of software sales revenue annually after completing CNB products integration with its software products.
"Not only will this Agreement substantially increase our software sales, but also Axium will now have access to one of the best hardware products for our security and surveillance customers," stated Mr. WonSoo Chung, the CEO of Axium Technologies. "CNB possesses one of the best technologies in zoom module and design in the industry. Axium will distribute CNB's hardware bundling with Maximum software through Axium's sales network. In addition to software sales revenue, we are confident we can generate another $4-5 million in sales revenue annually through the sale of CNB's hardware products through our distribution network. As Mr. Yoo noted, it is a perfect marriage."
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, CA 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 "TaggerTrap " is a state of the art graffiti detection product which 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 their 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.