ROSH PINA, Israel and CAPE TOWN, South Africa, April 8, 2002 (PRIMEZONE) -- OTI (GER:OT5), today announced that its wholly owned subsidiary, OTI Africa, has signed a five year agreement with Exel Petroleum (Pty) Ltd. to create a network of on-road sites equipped with OTI's fuel management system, branded in South Africa as FuelMaster. Exel's signature of the agreement furthermore constitutes an order for equipment required to immediately equip 40 on-road Exel sites The agreement with Exel will boost the current network of FuelMaster sites by approximately 25% and the number of Fuel Master end users by 40% over the next two years, which will result in significant increase in the on going transaction fee and revenue sharing for OTI Africa. In addition to cash payments for equipment, OTI Africa will receive a volume-based remuneration from Exel based on all petrol and diesel sold through the use of the FuelMaster System at on-road and home base sites.
"Exel's decision to implement the OTI solution was made after an extensive review of the fuel management systems available in the market and was motivated by the fact that OTI's fuel management system is the most secure solution in the market which also complies with the standards for contactless smart card technology, thereby guaranteeing an upgrade path which will ensure that Exel remains in step with market demands. Exel intends to expand its value proposition to customers by introducing applications at its forecourts based on the OTI technology. The OTI platform will accordingly form an integral part of Exel's e-commerce strategy," said Herman Welman, General Manager for Exel.
"In promoting OTI's fuel management solution to Exel, OTI Africa highlighted the strategic, commercial and operational advantages which could be derived through an alliance with BP and we are very pleased that pursuant to an agreement between Exel and BP, customers who wish to make use of the FuelMaster System when purchasing petroleum products from Exel and BP will be able to do so on an interoperable basis," said Charlotte Hambly-Nuss, Managing Director of OTI Africa. BP currently has a network of 500 FuelMaster sites throughout Southern and East Africa.
OTI Africa has been contracted to provide sales, encoding, installation, driver training, maintenance, repair, quality control services, customer care services, help desk services, and technical support and development services.
Exel, a successful black empowerment oil company, has in a short space of time, claimed a market share of 3.76% and is growing from strength to strength.
Customers now have a wider range of service stations to choose from including additional facilities such as convenience stores and car washes. The Exel brand is rapidly becoming a household name, specifically in Gauteng, Limpopo (Northern Province), Mphumalanga and the Free State. Aggressive expansion plans are underway to establish the young and vibrant brand in Kwa-Zulu Natal, Western Cape and the Eastern Cape.
About OTI
Established in 1990, OTI (On Track Innovations) designs and develops contactless microprocessor-based smart card technology to address the needs of a wide variety of markets. Applications developed by OTI include product solutions for mass transit, parking, gas management systems, loyalty schemes, ID and secure campuses. OTI has regional offices in the US, Europe, Asia Pacific, and Africa to market and support its products. The company was awarded the prestigious ESCAT Award for smart card innovation in both 1998 and 2000. Visit OTI on the Internet at www.oti.co.il.
OTI Africa, a subsidiary of OTI Limited, is responsible for the distribution, installation and maintenance of OTI's products and technology in the African market. Users of the OTI technology have access to an experienced and professional management team who lead and guide dedicated functions in sales, marketing, installation, technical, development and support services.