SOURCE: Axium Technologies, Inc.

October 03, 2007 08:00 ET

Axium Technologies Announces Agreement With Nadatel Co., Ltd. to License Its Maximum and Network Video Recorder Products

The Agreement Estimated to Add $750,000 in Annual Revenues

PASADENA, CA--(Marketwire - October 3, 2007) - Axium Technologies, Inc. (PINKSHEETS: AXGI) is pleased to announce the completion of a licensing agreement with Nadatel Co., Ltd. for its Maximum Software and the software-based Network Video Recorder products.

Nadatel Co., Ltd. is one of the leading manufacturers of Digital Video Recorder and IP addressable cameras/servers in South Korea. Nadatel has been supplying its products to some of the largest electronic retailers in the world under OEM agreements.

The agreement calls for Axium to create versions of its Maximum Software and Network Video products that specifically operate with Nadatel's Digital Video Recorders and IP addressable servers/cameras. The agreement runs for two years with terms included for automatic renewal. The initial delivery of products is scheduled for the fourth quarter of 2007. When the integration work is completed, Axium will retain the industrial and intellectual property rights for the products. Under full production, this agreement is expected to deliver a minimum of $750,000 in annual revenue, while achieving gross margins in excess of 90%.

Mr. WonSoo Chung, CEO of Axium Technologies stated, "This agreement provides Axium with another world class distribution channel for our products and a stepping stone to greater revenue opportunities in the near future. Equally important, the previously disclosed contract for Axium to integrate its Maximum software into many of Samsung Techwin's DVRs and IP cameras is now complete and Samsung will begin to pay licensing fees to Axium commencing in the fourth quarter of 2007. With this project complete, it is the perfect time for us to sign our second licensing agreement with Nadatel. We expect to complete the software integration into Nadatel products in less than two months. In the future, we anticipate signing additional licensing agreements for our software with additional manufacturers every quarter. If all goes as expected, within two years Axium's software business will be the most lucrative division of Company."


Axium Technologies, Inc. is a leading provider of surveillance security systems software and hardware. The Company maintains its corporate presence in Pasadena, CA and its Research and Development Facility in South Korea. The Company's primary products include MAXIMUM Surveillance Software, which is the key solution providing interoperability for numerous digitalized security and surveillance products from diverse manufacturers.

The Company's Digital Video Recorders (DVRs) and Network Video Products (NVPs) are targeted at the security and surveillance segments of the gaming industry. The Company's newest product "TaggerTrap" is a state-of-the-art graffiti detection product, which detects, records and alerts local police of graffiti activity. The estimated cost of graffiti clean-up in North America is $1.0 billion annually and millions of dollars have been budgeted over the past year by large metro police departments to detect and apprehend graffiti taggers.

During 2006, Axium Technologies redeployed much of its resources, both fiscal and headcount, to complete development of its current suite of products. With many of these products now in commercialization, management projects 2007 revenues to be approximately $8.8 million.

FORWARD-LOOKING STATEMENT: This press release contains forward-looking statements, including expected industry patterns and other financial and business results that involve known and unknown risks, uncertainties and other factors that may cause our actual results, levels of activity, performance or achievements to differ materially from results expressed or implied by this press release. Such risk factors include, among others: the sustainability of recent growth rates in the Security and Surveillance industry; the positioning of Axium products in the market; ability to integrate acquired companies and technology; ability to retain key employees; ability to successfully combine product offerings and customer acceptance of combined products; general market conditions, fluctuations in currency exchange rates, changes to operating systems and product strategy by vendors of operating systems; and whether Axium Technologies can successfully develop new products and the degree to which these products gain market acceptance. Actual results may differ materially from those contained in the forward-looking statements in this press release.

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