SOURCE: Alternet Systems, Inc.

Alternet Systems, Inc.

February 01, 2011 09:00 ET

Alternet Systems, Inc. (ALYI) Concludes Acquisition to Support Mobile Security Subsidiary

Acquisition Provides International Mobile Security (IMS) With Intellectual Property and Commercially Ready Products

MIAMI, FL--(Marketwire - February 1, 2011) - Alternet Systems, Inc. (OTCBB: ALYI), a leading enabler of secure mobile commerce and payment transactions, announced that it has concluded a first acquisition of intellectual property for its mobile security subsidiary International Mobile Solutions (IMS). IMS was created in late 2009 with the intent of addressing security concerns often present when deploying mobile commerce and transaction services, which Alternet offers through its other operating subsidiary, Utiba Americas. Since its launch, IMS has expanded its product portfolio to include products for the corporate and consumer market. Demand in these markets is driven by the ubiquity of cellphones worldwide, the growth of mobile commerce applications, and the explosive growth of smart phones and tablet computing devises, which like computers store and transmit sensitive user data but without the levels of protection that have evolved for computers. In order to fulfill the requirements of these market segments and to offer a comprehensive product portfolio, the company began targeting potential acquisitions in 2009.

With this purchase, IMS obtains the exclusive rights to a core technology that is currently marketed to global law enforcement agencies, and that will continue to generate revenues in this market segment. This proven and robust core technology will form the basis of applications and services for the corporate and consumer markets. The company has effectively acquired more than 20 commercially viable products; the consumer products will be launched in the 3rd Quarter of 2011, and corporate products soon thereafter.

The global mobile security software market which IMS targets is growing at explosive rates. ABI Research published a study in January 2010 projecting that the market will surpass $4 billion in 2014; however, IMS expects the market to be much larger. Company CEO Juan Cubides points to mergers and acquisitions in the space that occurred in the summer of 2010 as an indication of the market's potential. "We see the acquisition of mobile security technologies by telecommunications and IT leaders like Juniper Networks and Intel as a ratification of our strategy. Truly, the mobile platform appears poised to eclipse desktop and laptop computing, and these industry leaders have seen the same future as we do," Mr. Cubides remarked.

The importance of digital security has drawn US government attention as well. In 2010 President Obama declared that, "America's economic prosperity in the 21st century will depend on cybersecurity," and with that launched the Cyber Security Initiative and its multi-billion dollar budget for the next five to ten years. Alternet hopes to take part in the Initiative and looks forward to providing security tools to safeguard US interests. 

About International Mobile Security (IMS)

IMS was founded in 2009 as a subsidiary of Alternet Systems, a leading enabler of secure mobile commerce and payment transactions. Initially created to ensure the security of mobile financial transactions offered by another Alternet subsidiary, Utiba Americas, IMS has since broadened its horizons and scope of intended services to cater to three market segments, law enforcement, corporate and consumer. Mobile and digital security services are growing explosively driven by the near ubiquity of mobile phones and the rise of mobile applications. 

About Alternet Systems Inc.

Alternet Systems Inc. (OTCBB: ALYI), a US corporation headquartered in Miami, Florida, is a leading enabler of Secure Mobile Commerce and Communications in the Americas and Caribbean. Alternet has regional presences in 17 countries throughout the region through a network of fulfillment partners and agents. Alternet's subsidiaries provide a comprehensive suite of hosted and Software as a Service (SaaS) applications for the Utility, Transportation, Financial, and Telecommunication, and Retail industries. Alternet subsidiaries include Utiba Americas, a joint venture with Utiba Pte Ltd., the leading provider of mobile payment and financial transaction software, and International Mobile Security (IMS) a newly formed provider of mobile communications security products and services.

Certain statements in this news release may contain forward-looking information within the meaning of Rule 175 under the Securities Act of 1933 and Rule 3b-6 under the Securities Exchange Act of 1934, and are subject to the safe harbor created by those rules. All statements, other than statements of fact, included in this release, including, without limitation, statements regarding potential future plans and objectives of the Company, are forward-looking statements that involve risks and uncertainties. There can be no assurance that such statements will prove to be accurate and actual results and future events could differ materially from those anticipated in such statements.

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