SAN DIEGO, CA--(Marketwire - August 2, 2010) - Franklin Wireless Corp. (OTCBB: FKWL), the market leader in dual-mode WiMAX and CDMA modems for 3G and 4G wireless broadband data communications, announced today that it has reached an agreement with C-Motech Co. Ltd. whereby the company will repurchase all of C-Motech's Franklin Wireless shares. Per the terms of the agreement, the company will complete the repurchase of the shares by December 31, 2010. C-Motech currently holds 3,370,356 shares of Franklin's common stock, which represent approximately 24% of Franklin's outstanding shares. In addition, Kwang Sun (Kenny) Han, C-Motech's appointed board representative, will resign from Franklin's board of directors immediately upon execution of the agreement.
"We are pleased to announce that we have signed an agreement with C-Motech that will allow us to repurchase all of their Franklin Wireless shares at terms that we feel are favorable to both companies," said OC Kim, president of Franklin Wireless. "C-Motech has obviously been a key strategic business partner and shareholder of ours for the past several years and we certainly hope to continue working with them in the future."
About Franklin Wireless
Franklin Wireless Corp. (OTCBB: FKWL) is engaged in the design, manufacture and sale of high speed wireless data products including third generation ("3G") and fourth generation ("4G") modems, routers and modules. Our current products are focused on widely deployed cellular technologies including CDMA EVDO Rev A, HSPA, WiMAX and LTE. We were the world's first supplier of both CDMA EVDO Rev A and dual-mode (CDMA EVDO Rev A/WiMAX) Universal Serial Bus (USB) modems. Franklin's other products include Wi-Fi "hotspot" routers (which operate over WiMAX or CDMA networks) and wireless modules that are generally sold to original equipment manufacturers (OEMs). Our company's primary customers are wireless carriers who seek innovative, reliable and cost effective technology solutions for their subscribers. Our customer base extends from the United States to South America and the Caribbean.
Franklin Wireless is headquartered in San Diego, California. For additional information, please visit www.franklinwireless.com.
Safe Harbor Statement:
Certain statements in this press release constitute "forward-looking statements" within the meaning of section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. Such forward-looking statements involve known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements of the Company to be materially different from any future results, performance or achievements, expressed or implied by such forward-looking statements.
Contact Information:
Rick Walker
VP of Finance
858-623-0000
rick.walker@franklinwireless.com