TORONTO, March 18, 2002 (PRIMEZONE) -- Koala International Wireless, Inc. (OTCBB:KIWI), a leader in the development of web-based, wireless network applications, announced today that it has entered into a letter of intent to acquire 100% of the assets of Route1 (tm) Corporation in exchange for common stock issued by Koala. The transaction is subject to a number of terms and conditions including the completion of mutual due diligence and approval by a majority of Route1's shareholders.
Koala is building, through internal development and acquisition, a technology platform that incorporates state-of-the-art encryption and data compression techniques. The technology platform is integrated into a wireless communications device that allows access to a private cellular data network and/or the Internet. This capability enables Koala to exploit several existing complementary opportunities including Point of Sale (POS) applications that utilize credit and debit transaction processing for the restaurant, hospitality and entertainment industries.
In addition to POS applications, Koala is in the final stage of developing the KIWI, a handheld wireless unit that is one of the most advanced personal telecommunications devices in the world. Basic services include instant messaging, Infrared Modem access, email, Internet browsing, office tools, business tools, MP3 music player and others. The KIWI can be upgraded to a fully capable cellular phone that uses existing cellular networks. It can provide GPS functionality, extended telematics, screen signature capture, bar code recognition and other applications. The Company is currently evaluating a number of pathbreaking compression technologies that are designed to enable wireless devices to deliver 2-way video teleconferencing and larger data packet transfer over GPRS or comparable cellular networks. By enabling the Koala Network central server platform to manage the bulk of the unit's memory and processing capability, instead of locating them on the device, the KIWI can be produced and marketed at a price significantly lower than that of its competitors.
Route1 is a next-generation financial transaction processing company. The Company's encrypted messaging platform, Route1 Accelerator(tm), facilitates the delivery of a wide range of business solutions quickly, securely and cost-effectively. Accelerator applications include Internet-enabling of Automated Banking Machines (ABM/ATMs) and POS terminals for financial institutions, providing infrastructure to Application Service Providers (ASPs) and delivering secure transaction services to the wireless sector.
Upon completion of the acquisition, Andrew White, President and CEO of Route1, will join Koala as a senior executive in a position to be determined. Mr. White stated, "I am very pleased to be joining the Koala team and contributing to their vision of leadership in the development of innovative wireless, web-based applications and services. Route1's technology will significantly strengthen Koala's security, encryption and transaction management capabilities and set new standards for wireless services providers."
Michael Johnston, President and co-founder of Koala, added, "The acquisition of Route1's technology and expertise relating to financial transaction management is a critical step in assembling the technology platform upon which Koala's products and services are based. We anticipate additional acquisitions in the immediate future that will further strengthen our position as a global leader in wireless technology and services and wireless network infrastructure."
This material includes forward-looking statements based on management's current reasonable business expectations. In this document, the words "can," "anticipates," and similar expressions identify certain forward-looking statements. These statements are made in reliance on the Private Securities Litigation Reform Act, Section 27A of the Securities act of 1933, as amended. There are numerous risks and uncertainties that could result in actual results differing materially from expected outcomes. The material should be read in conjunction with the Company's current annual and quarterly reports filed with the SEC, which contain discussions of currently known factors that could significantly impact the Company's future expectations.