Route1 Inc.
TSX VENTURE : ROI

Route1 Inc.

September 22, 2009 14:19 ET

Route1 Secures Financing and Increases Sales

TORONTO, ONTARIO--(Marketwire - Sept. 22, 2009) - Route1 Inc., (TSX VENTURE:ROI) a security and identity-based services company, today announced that it has received a commitment for CAD$2.5 million in senior bank debt financing (Financing) from a major Canadian bank, which is supported by an Export Development Canada guarantee. The Financing commitment is subject to the bank's completion of its final due diligence process, and is expected to close within the next few weeks.

"We appreciate the bank's commitment to support us during this important growth stage for Route1, especially given the challenges now in the credit markets," said Anthony Rzepka, Executive Vice President and Chief Financial Officer, Route1 Inc. "The Financing bears interest at the bank's prime rate plus two and a half percent (2.5%), and is scheduled to be repaid by February 28, 2010."

The funds from the Financing will be used to purchase additional inventory to fulfill committed orders, including Qwest Government Services (Qwest) commitment for 30,000 MobiKEY devices by the end of 2009. As part of the Qwest commitment, Route1 received a follow-on order of 2500 MobiKEY devices and TruOFFICE subscriptions today that will be delivered before the end of the quarter.

"Route1 continues to progress and fulfill orders as anticipated. We are pleased with our subscriber growth, our strong forecasted finish to the quarter, and the record revenue pace that we are on," said Dean Peloso, Interim President and CEO, Route1 Inc. "The U.S. Government has added 2500 more MobiKEY and TruOFFICE subscribers to their existing deployment through Qwest. This roll-out arms more federal employees with secure teleworking capabilities and prepares federal agencies for a work-from-home scenario as H1N1 Swine Flu infections are expected to increase in the coming months."

ABOUT ROUTE1

Route1 delivers award-winning security and identity management solutions to customers world-wide. These solutions provide universal, secure access to all digital resources and sensitive data. At the heart of Route1's solutions is MobiNET, a communications and service delivery platform focused on identity management and entitlement-based access to resources. Route1's patent-pending solutions are based on FIPS-140-2 cryptographic modules, and simplify the process of meeting increasingly stringent regulatory requirements around privacy and security. Headquartered in Toronto, Route1 is listed on the TSX Venture Exchange (symbol: ROI). For more information, visit www.route1.com.

This news release is required by applicable Canadian laws and does not constitute an offer to sell or a solicitation of an offer to buy any of the securities in the United States. The securities have not been and will not be registered under the United States Securities Act of 1933, as amended (the "U.S. Securities Act") or any state securities laws and may not be offered or sold within the United States or to U.S. Persons unless registered under the U.S. Securities Act and applicable state securities laws or an exemption from such registration is available.

Certain statements in this press release may contain words such as "could", "expects", "may", "anticipates", "believes", "intends", "estimates", "targets", "envisions", "seeks" and other similar language and are considered forward-looking statements or information under applicable securities legislation. These statements are based on Route1's current expectations, estimates, forecasts and projections about the operating environment, legal environment, economies and markets in which Route1 operates. These statements are subject to important assumptions, risks and uncertainties, which are difficult to predict and the actual outcome may be materially different from those contemplated in forward-looking statements. Unless otherwise required by applicable securities laws, Route1 disclaims any intention or obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.

(C)2009 All rights reserved. Route1, the Route1 Logo, Mobi, Route1 MobiKEY, TruOFFICE, PurLINK, EnterpriseLIVE, DEFIMNET, IBAD and Route1 MobiNET are either Registered Trademarks or Trademarks of Route1 Inc. in the United States and or Canada. All other trademarks and trade names are the property of their respective owners.

The TSX Venture Exchange has not reviewed or approved the contents of this press release and does not accept responsibility for its adequacy or accuracy.

Contact Information

  • Investor Relations:
    Route1 Inc.
    Anthony Rzepka, Executive Vice President and CFO
    (416) 848-8391
    ir@route1.com
    or
    Media Contact:
    Route1 Inc.
    Tanieu Tan, Director, Marketing and Communications
    (416) 814-2615
    tanieu.tan@route1.com
    www.route1.com