TORONTO, March 22, 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 shares of Transcard Limited of Toronto, Ontario, Canada, 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 each company'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) and remittance 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 functionality, 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 path-breaking compression technologies that are designed to enable wireless devices to deliver 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.
Stephen Dulong, CEO of Transcard, remarks, "The vision and technical capabilities of Koala and their expertise in secure, wireless banking services are extremely compatible with the growth plans of Transcard. Koala and Transcard combined, represent an excellent opportunity to broaden and enhance Transcard's functionality and offerings and further Transcard's expansion in to a number of additional international markets."
Michael Johnston, President, CMO and co-founder of Koala, adds, "Koala's technical and distribution infrastructure, coupled with Transcard's proven formula for success in the international electronic collection and redemption business, will uniquely position Transcard to capture a large share of the international money transfer business."
ABOUT TRANSCARD
Transcard Canada Limited (www.transcardinter.com) is an International remittance and currency transfer company based in Toronto, Ontario, Canada. Transcard currently serves over 140,000 proprietary cardholders and offers its customers a variety of virtual account, currency conversion, and foreign exchange services. The company has deployed two finance cards, the TRAN$CARD International Finance Card and the TRAN$CARD Domestic Card. These cards offer stored-value electronic transfer debit cards permitting cross-border and global transfer of funds. Transcard's cardholders can transfer funds electronically to a TRAN$CARD. The transferred funds can then be used wherever the TRAN$CARD brand is accepted to purchase goods and services or to withdraw money. Under an exclusive agreement, Transcard's agent in the U.S. for collection is MoneyGram Payments Systems, Inc., of Lakewood, Colorado. MoneyGram is currently using Transcard's proprietary stored-value card system to transfer funds to Cuba, under approval of the U.S. Government.
This material includes forward-looking statements based on management's current reasonable business expectations. In this document, the words "can," "will," 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.