CLEVELAND, Aug. 23, 2010 (GLOBE NEWSWIRE) -- Concierge Technologies, Inc. (OTCBB:CNCG) has entered into the business of distributing leading-edge surveillance cameras to commercial and private vehicles capable of recording automobile accidents in real time. The business will be operated through Concierge's subsidiary Wireless Village. To staff the effort and secure the exclusive distribution contract for North America, Concierge will convey approximately 49% of its ownership in Wireless Village allocated to key personnel including Tibet System Co., Ltd., (manufacturer located in South Korea), Gonzalez & Kim LLC (a San Francisco based firm specializing in strategic planning, legislation and public policy), and the principals of 3rd Eye Cam (North American distributor). Wireless Village has been installing video surveillance systems in the Cleveland, OH and Southern California areas over the past year and this new mobile recording technology is expected to greatly expand their market presence. Concierge will retain majority interest in the venture.
3rd Eye Cam has already established a market for commercial fleets, primarily the taxi industry, and has delivered product to taxi operators in major U.S. Cities including San Francisco, New York and Washington D.C. Concierge will continue to reach out to other municipalities and transportation companies to adopt these mobile recording devices. Cameras are currently available online at www.3rdeyecam.com. Wireless Village will begin doing business under the name "3rd Eye Cam" within the next several weeks.
To assist with start-up capital requirements, Gonzalez & Kim are funding a convertible debenture to Concierge in the amount of $100,000. The debenture matures in 2 years and can be converted to Concierge Series B Convertible, Voting, Preferred stock at a rate of $.20 per share. Gonzalez & Kim will also be paid a loan commitment fee of 40,000 shares of Concierge Series B Convertible, Voting, Preferred stock.
Commenting on the transaction, David Neibert, CEO of Concierge, said, "This is a significant step in the development of Concierge's new business. The market for mobile recording devices to capture accidents and other incidents is growing exponentially and we believe we now have the best product in the marketplace. The industry expertise brought by Gonzalez & Kim and 3rd Eye Cam give us an advantage over our competitors. In the coming months we will be refocusing our core business to meet the demand for this technology which will be reflected by changes to our web sites, management and operating personnel. Our goal is to continue to build shareholder value through profitable operations. I believe we have made progress towards that aim with this latest transaction."
The statements contained in this press release that are not historical facts are forward-looking statements that involve certain risks and uncertainties including but not limited to risks associated with the uncertainty of our future performance, acquisitions or dispositions of interests, debt obligations, additional financing requirements, the effect of economic conditions generally and in the communications and information technology markets specifically, and uncertainties detailed in the Company's filings with the Securities and Exchange Commission. These and other factors may cause actual results to differ materially from those projected.