Digital Dispatch Systems Inc.

Digital Dispatch Systems Inc.

January 17, 2008 08:00 ET

Digital Dispatch Releases MobiSoft Acquisition Report

RICHMOND, BRITISH COLUMBIA--(Marketwire - Jan. 17, 2008) - Digital Dispatch Systems Inc. (TSX:DD) announced that it has released the Business Acquisition Report ("BAR") for its previously announced acquisition of MobiSoft OY ("MobiSoft"), a growing and profitable international Finnish software company specializing in application service provider ("ASP") oriented automated dispatching and wireless data transfer applications for passenger transport which has been filed on

For the year ended September 30, 2007, MobiSoft reported total revenue of EUR 4.1 million with net income of EUR 636,000 under Finnish generally accepted accounting principles representing a 55% increase in revenues over the prior year ended September 30, 2006 of EUR 2.6 million. The majority of MobiSoft's revenue is recurring in nature and attributable to its ASP fleet management and dispatch services. The total consideration for the transaction is reported at $7.7 million consisting of $4.2 million in cash and 1.28 million common shares issued from treasury valued at $3.1 million and estimated acquisition costs of $362,000 resulting in a revenue multiple of 1.3 paid by Digital Dispatch for this strategic acquisition based on a foreign exchange rate of 1.4164 CDN$ per Euro.

According to Vari Ghai, CEO of Digital Dispatch, "We look forward to monetizing the strong synergies between Digital Dispatch and this growing, profitable software company. The proven hosted ASP recurring revenue model of MobiSoft provides us with the ideal solution to address this huge opportunity in North America. With Digital Dispatch's strong brand recognition in taxi and MobiSoft's proven product offering, we expect to quickly exploit this exciting opportunity."

As a subsidiary of Digital Dispatch on a going forward basis, MobiSoft will change its year end from September 30th to December 31st to be consistent with Digital Dispatch's fiscal year end. With an effective date of October 1, 2007, the financial results of MobiSoft will be included in Digital Dispatch's consolidated financial results commencing with the three months ended December 31, 2007.

About Digital Dispatch Systems Inc.

Digital Dispatch Systems Inc. is a worldwide provider of mobile data solutions for fleet and mobile workforce management. Founded in 1987, we have an installed base of more than 75,000 wireless mobile data devices and nearly 200 wireless data systems in five continents. We offer products and services to manage vehicle fleets and mobile workforces, including dispatch software, wireless communication infrastructure and a range of in-vehicle mobile devices. Visit for more information.

Forward-Looking Statements

This press release contains statements which, to the extent that they are not recitations of historical fact, may constitute forward-looking information. Factors that could cause actual events or results to differ materially from those suggested by these forward-looking statements include, but are not limited to, the integration of the acquisition referred to in this press release with Digital Dispatch and the future financial performance of MobiSoft after the acquisition by Digital Dispatch. Additional factors also include the need to develop, integrate and deploy applications to meet our customer's requirements; the possibility of development or deployment difficulties or delays; the dependence on our customer's satisfaction with Digital Dispatch's products; the timing of entering into significant contracts; our customers' continued commitment to the deployment of our solutions; the risks involved in developing integrated software and hardware solutions and integrating them with third-party communication and other services; the performance of the global economy and growth in software industry sales; market acceptance of the Company's products and services; customer and industry analyst perception of the Company and its technology vision and future prospects; the success of certain business combinations engaged in by the Company or by competitors; political unrest or acts of war; possible disruptive effects of organizational or personnel changes; technological change, new products and standards; risks related to acquisitions and international expansion; reliance on large customers; concentration of sales; international operations and sales; management of growth and expansion; dependence upon key personnel and hiring; reliance on a limited number of suppliers; industry growth; competition; intellectual property; product defects and product liability; currency exchange rate risk; concentration of ownership; and including but not limited to other factors described in Digital Dispatch's reports filed on Sedar, including its Annual Information Form and financial report for the year ended December 31, 2006.
In drawing a conclusion or making a forecast or projection set out in the forward-looking information, the Company takes into account the following material factors and assumptions in addition to the above factors the Company's ability to execute on its business plan; the acceptance of the Company's products and services by its customers; the timing of execution of outstanding or potential customer contracts by the Company; the sales opportunities available to the Company; the Company's subjective assessment of the likelihood of success of a sales lead or opportunity; the Company's historic ability to generate sales leads or opportunities; and that sales will be completed at or above the Company's estimated margins. This list is not exhaustive of the factors that may affect our forward-looking information. These and other factors should be considered carefully and readers should not place undue reliance on such forward-looking information. All forward-looking statements made in this press release are qualified by this cautionary statement and there can be no assurance that actual results or developments anticipated by the Company will be realized. The Company disclaims any intention or obligation to update or revise forward-looking information, whether as a result of new information, future events or otherwise.

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