COPENHAGEN, Denmark, Aug. 10, 2001 (PRIMEZONE) -- Olicom A/S (OTCBB:OLCMF) ("Olicom" or "the Company") today announced that it has provided series A funding for LH Comlog A/S ("Comlog"), a wireless technology company that develops and markets fleet management systems. The funding has been provided in syndication with BI Technology A/S, a venture capital firm managed by the BankInvest Group. Olicom has committed DKK 12.5 million ($1.5 million) of the group's total commitment of DKK 25 million ($3 million) and will in return receive 22.5% of the shares in Comlog.
Comlog has developed fleet management software and a range of wireless data terminals based on Global System for Mobile Communications (GSM) and the Global Positioning System (GPS). While GSM lets a terminal communicate with a host computer from anywhere in Europe and most of the world, the GPS technology enables the terminal to determine its own position with an accuracy of a few meters. With these terminals installed in their trucks and trailers, the fleet management software enables fleet owners to track the location of their vehicles in real time as well as communicate with their drivers. Real time vehicle data and communication is the foundation for increased driver efficiency, better utilization of the equipment and improved customer satisfaction.
"Knowing precisely where each truck is at any time can lead to substantial cost savings, because dispatching becomes so much more efficient," said Peter Ebsen Petersen, Comlog's Manager of Product Development. "We have seen customers realize savings of up to 10% or more of their operating costs. This translates directly to higher profits or improved competitiveness."
"Location-based information systems is one of the growth opportunities for wireless data applications," explained Boje Rinhart, President and CEO of Olicom. "What impressed us about Comlog is that they represent a rare combination of technological expertise in this area and a thorough understanding of their market and customers, and the fact that they have built a successful, profitable business in Scandinavia with customers such as Statoil, DFDS Transport and Unicon Beton."
"We want to expand our business beyond Scandinavia," stated Per Bang Larsen, president and founder of Comlog. "Olicom will not only help us fund our growth, but furthermore helped us develop our strategy and plan for expanding our market to the rest of Europe."
"The cooperation with Olicom has been very positive and I expect that together we will be able to contribute to Comlog achieving their ambitious growth targets," said CEO Lars Krull, BI Technology A/S.
About Olicom
Olicom initiates or participates in the development of new products and services that leverage leading-edge communications technologies, primarily with a focus on satisfying the needs of mobile data communication users. Business opportunities are identified both through Olicom's internal research and through the solicitation of ventures with start-up companies, which are offered seed and venture financing and access to the Company's established business network and infrastructure. More information about Olicom is available from the Company's SEC filings or by contacting the Company directly. Information is also available on the Company's Website at www.olicom.com.
Olicom is a registered trademark.
About LH Comlog A/S
LH Comlog A/S (COMLOG) is a Danish limited liability company, which was spun off from LH Agro in 1998. Comlog's activities are development and marketing of fleet management systems utilizing GPS and GSM terminals that are installed in vehicles. Comlog has approximately 40 customers, primarily Danish companies. The majority of Comlog's 18 employees are engaged in product development and support. Comlog's 2000 revenues were approximately $1.8 million
Except for historical information contained herein, the matters discussed in this news release may contain forward-looking statements that reflect the Company's current expectations and projections about its future results, performance, prospects and opportunities. These forward-looking statements are based on information currently available to the Company and are subject to a number of risks, uncertainties and other factors that could cause its actual results, performance, prospects or opportunities to differ materially from those expressed in, or implied by, these forward-looking statements. Among the risks, uncertainties and other factors that could cause results to differ are uncertain market conditions, the successful implementation of the Company's new strategic direction; the Company's need to continue to identify and acquire interests in suitable portfolio companies; intense competition among capital providers to acquire interests in technology companies; the dependence of the Company on the financial and operating success of the enterprises in which it invests or participates; and existing and future regulations affecting the Company's business, the businesses of its portfolio companies or technology generally. Further information may be found in Olicom's periodic filings with the U.S. Securities and Exchange Commission (SEC), including the most recent reports on Form 20-F and 6-K, which identify important risk factors related to the Company's business that could cause actual results, performance, prospects or opportunities to materially differ from those contained in the forward-looking statements.