Manaris Corporation
OTC Bulletin Board : MANS
FRANKFURT : WKN:255471

Manaris Corporation

January 29, 2007 08:56 ET

Message from the President and CEO of Manaris Corporation

Update to shareholders

MONTREAL, CANADA--(CCNMatthews - Jan. 29, 2007) - Manaris Corporation (OTCBB:MANS)(FRANKFURT WKN:A0F5LD) today released the following corporate update from its President and CEO, John Fraser:

In October 2005, I established goals of eliminating non-core businesses, reducing costs while achieving revenue growth in our core businesses. Since then, we have successfully divested all of our non-core subsidiaries, our results for Q1 for the three months ending September 30, 2006 indicated a revenue increase of 89% and a decrease in operating loss of 61% compared to the same period in fiscal 2006.

In addition, last month, our subsidiary, C-Chip Technologies Corporation (North America) (C-Chip), entered into a licensing agreement with its technology partner iMetrik Inc. Pursuant to the agreement, C-Chip will receive royalties from iMetrik for its worldwide sales of GSM-based "locate and disable" products into the "Buy Here Pay Here" (BHPH) used car market. The agreement minimizes C-Chip's expenses and ensures that it will continue to benefit from potential growth in this market. It will also serve to protect C-Chip's intellectual property and leverage iMetrik's engineering and development expertise.

Going forward, we plan to focus on our other subsidiary Avensys, an innovative company which operates two divisions - Avensys Tech and Avensys Solutions. Avensys Tech manufactures and distributes fiber optic components worldwide, while Avensys Solutions distributes and integrates environmental monitoring solutions. Both Avensys Tech and Avensys Solutions have specialized product lines and are uniquely positioned to take full advantage of market growth. Further, both divisions have a skilled and experienced management team.

Avensys Tech operates in three vertical markets within the photonics industry: the telecommunications market, which represents close to 75% of Avensys Tech's sales, the growing fiber laser market, and the fiber sensor market. The market for optical telecom components has now returned to double-digit growth rates, according to a report published by Communications Industry Researchers Inc. in June 2006. Growth forecasts for this market are based on increasing needs for bandwidth and the gradual rebuilding of infrastructures to support new digital services such as internet protocol television. Similarly, the fiber laser market is forecast to grow at a compound rate of 39%, from $131M in 2005 to $674M USD by 2010, according to Strategies Unlimited. The market for fiber sensors, meanwhile, is currently at about $300M per year with an annual average growth rate of 4.1% according to a report published by BCC Research in November 2005.

Avensys Tech's strengths are both technological and operational. With our recent acquisition of the assets of ITF Optical Technologies Inc., we are positioned to design and manufacture complex optical components and sub-components in a cost-effective manner. Avensys is one of the few companies certified to manufacture undersea telecom components used in the deployment of trans-ocean cable systems. In addition, through our partnership with, and part-ownership of, ITF Labs, which has obtained 28 registered patents, we are able to compete in the cutting edge market for demodulation techniques and high power fiber laser components.

Avensys Solutions competes in the Canadian environmental monitoring market providing instrumentation and integrated systems capable of detecting and quantifying the presence of specific pollutants, gases and other components in ambient air, stack emissions, waste water, natural water sources and soil. We anticipate that this market will experience overall growth as the private and public sectors recognize the value of sustainable development and environmentally responsible behavior. Current environment monitoring expenditures in Canada are estimated at $320M CAD annually according to Statistics Canada. The market is served by over 10,000 privately owned small firms and, as such, is a candidate for consolidation. We anticipate that consolidation will be driven by the public and private sectors' growing needs for turnkey environmental monitoring solutions. Given the fragmented nature of this market and Avensys' position as one of the few public companies operating in the Canadian environmental monitoring marketplace, we are prepared to participate in any consolidation trend that may emerge.

ABOUT MANARIS CORPORATION

Manaris Corporation operates two wholly-owned subsidiaries. Our Avensys subsidiary, through its Avensys Technology division, is a recognized world leader in providing high quality fiber optic components & sensors to businesses in Asia, Europe and North America with. Its other division, Avensys Solutions, provides environmental monitoring solutions and services, including the monitoring of air, water and soil, to industrial and public sector organizations across Canada. Our other subsidiary, C-Chip Technologies (North America), offers products and services to the credit management market for new and used cars. Its technology allows credit providers to remotely locate and disable the operation of any vehicle in the event of a delinquent payment.

FORWARD-LOOKING-STATEMENT: Except for factual statements made herein, the information contained in this press release consists of forward-looking statements that involve risks uncertainties, including the effect of changing economic conditions, competition within the credit and security industry, customer acceptance of products and other risks and uncertainties. Such forward looking statements are not guarantees of performance, and Manaris Corporation results could differ materially from those contained in such statements. These forward-looking statements speak only as of the date of this release and Manaris Corporation undertakes no obligation to publicly update any forward-looking statements to reflect new information, events or circumstances after the date of this release.

Contact Information

  • Manaris Corporation
    Mr. John Fraser
    President and CEO
    514-337-2447
    or
    Zenergy Communications
    Linda Farha
    514-273-4034
    linda@zenergycom.com