Zedi Inc.
TSX VENTURE : ZED

Zedi Inc.

May 05, 2010 17:28 ET

Zedi Inc. Announces Letter of Intent to Acquire Skyways Technical Services Ltd.

CALGARY, ALBERTA--(Marketwire - May 5, 2010) - Zedi Inc. (the "Company" or "Zedi") (TSX VENTURE:ZED) today announces that it has signed a letter of intent for the acquisition of all issued and outstanding shares of Skyways Technical Services Ltd. (Skyways) by Zedi (J&J Oilfield Division) Inc., a wholly owned subsidiary of Zedi Canada Inc. Skyways is a Fort Nelson, British Columbia based private corporation providing field operations and management services to the oil and gas industry in NE British Columbia.

"The acquisition of Skyways fits solidly with Zedi's strategy for growth in the Canadian market. It will increase our market penetration in a geography that is experiencing a high level of activity – Fort Nelson and the Horn River Basin. The Fort Nelson location of Skyways complements our existing Zedi Field Operations footprint where we are based out of offices in Fort St. John, BC and Grande Prairie, AB," says Matthew Heffernan, President and CEO of Zedi.

"Skyways has always taken great pride in providing quality service. Our team is excited about the opportunity to increase the options we can offer our clients. The proven technology that Zedi provides, coupled with the experienced team of people that Skyways has developed over the past 30 years, will enhance our ability to offer complete operations and maintenance management solutions for the industry. With the current activity in North East B.C., particularly in the Fort Nelson and Horn River region, having local representation and access to Zedi's multitude of optimization solutions will bring immediate benefit to the area producers," says Rod Rombough, President of Skyways.

Skyways is expected to be accretive immediately and will contribute approximately $1.7 million annually in revenues with approximately $1 million of that incrementing Zedi's recurring revenue base. The purchase price of $1.8 million, funded out of cash on hand, is comprised of an upfront cash payment of $400,000 and earn out payments based on certain EBITDA targets being met. The transaction, expected to close on August 1, 2010, is conditional upon the completion of due diligence and obtaining the necessary board and regulatory approvals.

Zedi Inc. (TSX VENTURE:ZED) specializes in the end-to-end management of oil and gas production operations. Zedi arms producers from the field to head office with accurate, timely and centralized data to help them make better business decisions. Using technology to gather highly accurate data from well sites, Zedi automatically moves it through critical work processes including web-based field data capture and production accounting systems. Zedi technology is continually evolving in the control and optimization of wells to ensure maximum production and cost reduction. Established in 1987, Zedi has enhanced the operational performance of more than 400 upstream, midstream and oilfield service customers.

The TSX does not accept responsibility for the adequacy or accuracy of this release.

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