SOURCE: Axium Technologies, Inc.

February 15, 2007 09:25 ET

Axium Technologies Completes Agreement With CNB Technology USA for Distribution of CNB's Security DVRs and Axium's Integration Software

Market Development Agreement Projected to Create an Additional $7.0 Million in Revenues for Axium in 2007

PASADENA, CA -- (MARKET WIRE) -- February 15, 2007 -- Axium Technologies, Inc. (PINKSHEETS: AXGI) announced today that it has completed a Market Development Agreement with CNB Technology USA, which will result in Axium increasing the sale of DVR security digital video recorders that will be integrated with its various proprietary software products. The Agreement will also increase the geographical reach of Axium to clients located throughout the United States.

The Agreement provides for the companies to jointly market CNB Products throughout the USA. The Agreement also provides that Axium Technologies will be the exclusive provider of CNB Products within California and in all states east of the Mississippi River. CNB will also refer all of its existing customers within the Axium areas of exclusivity to Axium for customer service and future sales opportunities, including software and services upgrades.

As a part of this Agreement, Axium and CNB will jointly market and distribute products from the newly acquired Fairfield, NJ location under the name Axium/CNB. This agreement also provides for CNB to provide to Axium an initial inventory of products in the New Jersey facility of not less than $1.0 Million, thereby decreasing Axium's upfront cost in implementing the agreement.

Mr. WonSoo Chung, CEO of Axium, states, "This agreement will provide Axium with a much larger territory of exposure and many new customers to draw from in the Eastern US. With this agreement, we have accomplished a couple of our major management initiatives in 2007 -- exclusive distribution rights to a leading DVR set of hardware products to be offered in conjunction with our software products and services; and expansion of our products and services to a much larger customer base without upfront customer acquisition costs."

The Agreement is projected to increase Axium's projected revenues by $7.0 Million in 2007.


Axium Technologies, Inc. is a leading provider in surveillance security systems software and hardware. The company maintains its corporate presence in Pasadena, CA and its Research and Development Facility in South Korea.

The Company's primary products include MAXIMUM Surveillance Software, which is the key solution providing interoperability for numerous digitalized security and surveillance products from diverse manufacturers. The Company's Digital Video Recorders (DVRs) and Network Video Products (NVPs) are targeted at the Security and Surveillance segment of the gaming industry. The Company's newest product "Tagger Trap" is a state-of-the-art graffiti detection product, which detects and alarms local police of graffiti activity. The estimated cost of graffiti clean up in North America is projected at $1.0 billion annually. Millions of dollars have been budgeted in the past year by large metro police departments to detect and apprehend graffiti taggers.

During 2006, Axium Technologies redeployed much of their resources, both fiscal and headcount, to complete development of its current suite of products. In doing so, its 2006 revenues are expected to reach $1.04 million, with revenues for 2007 presently projected to be $13.9 million, with net margins of approximately 33% of revenues.

FORWARD-LOOKING STATEMENT: This press release contains forward-looking statements, including expected industry patterns and other financial and business results that involve known and unknown risks, uncertainties and other factors that may cause our actual results, levels of activity, performance or achievements to differ materially from results expressed or implied by this press release. Such risk factors include, among others: the sustainability of recent growth rates in the Security and Surveillance industry; the positioning of Axium products in the market; ability to integrate acquired companies and technology; ability to retain key employees; ability to successfully combine product offerings and customer acceptance of combined products; general market conditions, fluctuations in currency exchange rates, changes to operating systems and product strategy by vendors of operating systems; and whether Axium Technologies can successfully develop new products and the degree to which these products gain market acceptance. Actual results may differ materially from those contained in the forward-looking statements in this press release.

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