BELLEVUE, Wash., May 7, 2009 (GLOBE NEWSWIRE) -- Sector 10, Inc. (OTCBB:SECT) (Frankfurt:4SR) today announced that a reverse stock split restructuring was approved in order to pursue an acquisition and growth strategy intended to increase shareholder value and establish the company as the premier provider in the emergency response market. The reverse stock split is expected to provide the Company with more flexibility in future acquisition negotiations. The acquisition strategy provides for a structured deferred payment with common stock and/or cash. The deferred payment structure is intended to assist in minimizing potential dilution to current shareholders as a result of the implementation of the acquisition strategy.
In pursuing their acquisition strategy, Sector 10, Inc. also announced that it has signed a Letter of Intent with Fairhaven International LLC to purchase an important technology and related intellectual property rights for use in worldwide monitoring of Sector 10 sites. The system, known as the Operational Readiness, Command & Administration System (ORCAS), was developed in response to the need for a simplified system for monitoring emergency incidents and events around the world. ORCAS is currently in use by several agencies for monitoring these exact types of situations. The ORCAS platform will be used in conjunction with the patented Emergency Stationary Response Units (SRU).
The application of ORCAS to Sector 10's technology underscores the ongoing commitment of the Company in ensuring the protection and well being of its clients and their customers. In a typical installation, once a catastrophe happens, ORCAS will immediately display the location of the unit, and then be the link to the available assets for response. ORCAS will be available for free to local police, fire and EMS when a building within their jurisdiction has Sector 10 SRU's installed.
According to the President of Fairhaven International LLC, "The use of ORCAS as a worldwide monitoring system will enhance the capability of responders to immediately know when a system has been activated." Sector 10 CEO, Pericles DeAvila, echoed this by saying, "Sector 10 is committed to bringing all systems online that enhance our SRU lines of business, which by extension help saves lives and property."
Sector 10, Inc. is also looking at other acquisition candidates that provide synergistic products and established sales channels. The Company is currently working on several prospects and expects to make further announcements in the coming weeks regarding the signing of additional Letters of Intent.
Sector 10 has been positioning itself in the market for almost two years with a unique line of products that brings together emergency products, hardware, software, security and an integrated communications system to stand alone in the emergency response market as a true pre-deployed system to save lives the instant a disaster happens.
About Sector 10, Inc.
Sector 10, Inc. is redefining the emergency response paradigm from centralized equipment staging to onsite pre-deployed resources. Sector 10 is the only emergency response systems company so strongly emphasizing pre-deployed resources as the way to save lives, avert injuries, reduce liability and to "Bridge the Survival Gap." http://www.sector10inc.com
FORWARD-LOOKING STATEMENTS
This press release may include "forward-looking statements" within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. All statements, other than statements of historical facts, included in this press release that address activities, events or development that the company expects, believes or anticipates will or may occur in the future are forward-looking statements. These statements are subject to a number of assumptions, risks and uncertainties, many of which are beyond the control of the Company, which may cause the Company's actual results to differ materially from those implied or expressed by the forward-looking statements. The Company assumes no duty whatsoever to update these forward-looking statements or to conform them to future events or developments. www.sector10inc.com