IRVINE, Calif., Oct. 12, 2004 (PRIMEZONE) -- Military Communications Technologies (OTCBB:MLTA) announced today that it has recently completed an agreement to purchase all of the assets, including all of the Intellectual Property, of Radical Horizon, Inc (RHI), an important Montreal-based developer of Software Defined Radio (SDR) communications hardware technology. The MOU has been accepted and executed by all parties.
Consideration for the $3 million purchase from the majority investors will be by way of restricted MLTA shares at a price of 16.3 cents per share. The main RHI investors are two large Canadian based investment funds that will hold the MLTA shares at completion. Full details will be announced upon finalization.
MLTA's proposed acquisition of RHI is of significant strategic importance and consistent with the company's plans to locate an engineering facility in North America as announced by MLTA on September 2nd 2004. An important element of the acquisition is that of maintaining the services of key RHI executive and engineering staff, and also utilizing the RHI development facilities in Montreal. The agreement also calls for the integration of some SpectruCell SDR applications with the RHI SDR hardware platform to produce a "turn-key" SDR Mobil base station platform. It is an excellent example of where "One plus One makes Five," said a company representative. Given the rapidly emerging acceptance and demand for SDR technology in the Homeland Security and military markets as recently announced (see below), MLTA should be well positioned to benefit substantially from the increasing demand for SDR technology.
The company estimates that the combination of SDR engineering and software development resources from both companies will reduce the SDR base station commercialization time-frame by up to one year and save AU$4-$5 million in hardware development costs.
The planned acquisition and subsequent combination of development resources will also provide MLTA with a tremendous market advantage as a result of the SDR hardware development initiatives by RHI that are very complementary to SpectruCell SDR software operating system development. This will mean a substantial reduction in the SpectruCell SDR wireless product time-to-market. RHI's focus has been on completing the hardware elements whereas the SpectruCell(TM) development priority has been to finalize the operating software. It's a perfect match for us and we are very excited," said Mr. Bowden, a Director of MLTA.
"The established RHI facilities in Montreal, together with access to the high-caliber engineering staff, will now better facilitate our planned re-location of the main engineering facilities from Australia to North America. The scaled down engineering facilities in Australia are still being established," said Mr. Bowden.
Mr. Bowden advised that the parties are now proceeding with the final stage of the acquisition that being the completion of an Asset Purchase Agreement. Full details will be advised later.
The MLTA announcements of September 2, 2004 are all still in place and proceeding as previously indicated.
Recent SDR Industry Report
"In a recent study conducted by Venture Development Corporation (VDC)," Software-Defined Radio: North American and European Market Demand Analysis," 88% of U.S. public safety respondents indicated that software-defined radio (SDR) technology could help solve the numerous interoperability issues experienced when trying to communicate between departments.
Because they employ radios that operate on various frequencies and use several different protocols, most public safety branches have no means of direct radio-to-radio communication. Police, fire and local government personnel resort to swapping radios between departments or transporting communication gateways to the site to solve interoperability issues, causing unnecessary delay and confusion in critical situations.
When similar interoperability issues were identified within the United States military, the DoD established the Joint Tactical Radio System (JTRS) program. The program quickly recognized that software-defined radios could supply a highly diverse installed base of systems with support for multiple protocols and frequency bands, and alleviate these problems. Procurement of SDR devices for the military is currently underway, with plans to replace all of the military's radios. In fact, the DoD plans to spend an estimated $4.7 billion incorporating SDR devices and technology over the next four years." Go to -- http://www.vdc-corp.com/telecom/press/04/pr04-40.html For more information about Radical Horizons see -- www.radicalhorizons.com
About Military Communications Technologies
Military Communications Technologies, Inc. is a technology company involved in the development and distribution of proprietary software defined radio (SDR) commercial and military mobile wireless network applications. The Company's core military product, PC4 is specifically targeted to the demands of the Military and Homeland Defense agencies for large-scale defense grade reconfigurable wireless communications systems. PC4, which stands for Programmable, Command, Control, Compute, and Communicate, is a next-generation SDR framework and proprietary operating system uniquely designed for interoperable, lightweight and mobile military communications systems. The PC4 framework is also especially suitable for radar and high-speed digital RF and GSM surveillance systems. The Company's proprietary SpectruCell(TM) SDR multiple protocol wireless base station technology offers commercial wireless providers a cost-effective, software-based method to upgrade systems to next-generation standards and makes next generation networks interoperable with most wireless protocols all over the same network.
Statements in this release, which relate to other than strictly historical facts, including statements about the Company's plans and strategies, as well as management's expectations and new and existing products, technologies and opportunities, market growth, demand for acceptance of new and existing products, are forward-looking statements. The words, "believe," "expect," "anticipate," "estimate," "project," and similar expressions identify forward-looking statements that speak only as the date hereof. This press release contains certain forward-looking statements regarding Military Communications Technologies, INC. ("MLTA"), its business prospects and results of operations that are subject to certain risks and uncertainties posed by many factors and events that could cause MLTA's actual business, prospects and results of operations to differ materiality from those that may be anticipated by such forward-looking statements. Readers are urged to carefully review and consider the various disclosures made by MLTA in this news release and other reports filed with the Securities and Exchange Commission that attempt to advise interested parties of the risks and factors that may affect MLTA's business.