International Technologies Corporation
TSX VENTURE : ITI

International Technologies Corporation

January 24, 2008 17:29 ET

ITC to Acquire Global Manufacturer MPIO International

RICHMOND, BRITISH COLUMBIA--(Marketwire - Jan. 24, 2008) - THIS PRESS RELEASE IS NOT TO BE DISTRIBUTED TO U.S. NEWSWIRE SERVICES OR FOR DISSEMINATION IN THE UNITED STATES.

International Technologies Corporation ("ITC") (TSX VENTURE:ITI) is pleased to announce that it has entered into a Memorandum of Understanding to acquire 100% ownership of its manufacturing partner, MPIO International Co. Ltd. in Korea ("MPIO"). This transaction provides ITC exclusive ownership and rights to all MPIO manufacturing, branding and sales accounts worldwide.

The purchase price of MPIO Korea by ITC is undisclosed for competitive reasons at this time but will include a blend of cash and equity. In connection with the acquisition ITC will be completing an equity financing and is currently in discussions with qualified dealers in this regard. The transaction is subject to a number of customary conditions, including receipt of all necessary regulatory approval, including the approval of the acquisition by the TSX Venture Exchange, completion of satisfactory due diligence by each of ITC and MPIO and approval of each of the Boards of Directors of ITC and MPIO. Closing is expected to occur prior to May 2008.

"We have worked along side MPIO as our manufacturing partner since 2003 and the time has come to become one entity realizing cost synergies and accessing regions that offer the greatest growth outside of North America," said Michael Uhm, President and CEO of ITC. "This is an incredible opportunity to gain market share around the world while adding tremendous value to our top and bottom line. We intend to execute our expansion strategy aggressively this year and return to a position of strong financial performance."

Founded in July 1998 by a pioneer in the MP3 industry, MPIO provides popular digital products to OEM's, distributors and end users. In Asia, including Japan and Korea, MPIO's products are recorded as the number one selling digital audio devices. MPIO technologies include portable music players, digital voice recorders, multi function digital still cameras, MP3 encoders, multi-function hybrid digital music devices and digital NV products.

MPIO has a hardware/software R&D center, industrial design team, two manufacturing factories, and other administrative organizations including sales and marketing. Recognized for its unique design and quality, MPIO has won KIDP design awards and best selling product awards by various domestic/international media since 1999. In 2003, MPIO awarded with CES Innovation Awards from the US. Also in 2003 and 2005, MPIO received IF Design Awards which is one of the most competitive design awards in the world.

About ITC

International Technologies Corporation (TSX VENTURE:ITI) (www.itcco.com) is a global supplier of innovative digital audio, multi-media, home entertainment, flat screen monitors/televisions and other advanced electronics products to the consumer and commercial market place. ITC also creates private label and OEM brands for its retail partners. The Company's ability to deliver manufacturer-direct product provides savings and other significant advantages to its customers.

ITC holds the exclusive rights to distribute MPIO products to the North, Central and South American markets in addition to Mexico and Australia through its relationship with Digitalway Korea and has exclusivity on all Hansol Korea LCD monitors sold to the North American market.

This news release contains certain forward-looking statements, which include assumptions with respect to (i) future operations; (ii) future economic conditions; (iii) future capital expenditures; and (iv) cash flow. The reader is cautioned that assumptions used in the preparation of such information may prove to be incorrect. All such forward looking statements involve substantial known and unknown risks and uncertainties, certain of which are beyond the Company's control. Factors that might cause a difference include, but are not limited to, market acceptance of principal products, the impact of competitive products and technologies, the possibility of products infringing patents and other intellectual property of fourth parties, and costs of product development. ITC wilt not update these forward-looking statements to reflect events or circumstances after the c/ate hereof. More detailed information about potential factors that could affect financial results is included in the documents filed from time to time with the Canadian securities regulatory authorities by ITC. The Company's actual results, performance or achievements could differ materially from those expressed in, or implied by, these forward-looking statements and, accordingly, no assurances can be given that any of the events anticipated by the forward-looking statements will transpire or occur, or if any of them do so, what benefits, including the amount of proceeds, that the Company will derive therefrom. Readers are cautioned that the foregoing list of factors is not exhaustive. All subsequent forward-looking statements, whether written or oral, attributable to the Company or persons acting on its behalf are expressly qualified in their entirety by these cautionary statements. Furthermore, the forward-looking statements contained in this news release are made as at the date of this news release and the Company does not undertake any obligation to update publicly or to revise any of the included forward-looking statements, whether as a result of new information, future events or otherwise, except as may be required by applicable securities laws. Any failure to comply with this restriction may constitute a violation of U.S. securities law.

The TSX Venture Exchange has not reviewed and does not accept responsibility for the adequacy or accuracy of the contents herein.

Contact Information

  • Activ8 Corporate Relations
    Loa Fridfinnson
    (604) 687-2004 or Toll Free: 1-800-303-3367
    Email: ir@itcco.com
    or
    International Technologies Corporation
    Mr. Fred Baldwin
    Chief Financial Officer
    (604) 247-1202
    Email: fbaldwin@itcco.com
    Website: www.itcco.com