SOURCE: Axium Technologies, Inc

January 31, 2007 08:30 ET

Axium Technologies Opens East Coast Office in Conjunction With CNB USA to Expand Sales and Marketing Opportunities

Patrick Lee Joins Axium Technologies as General Manager of East Coast Operation

PASADENA, CA -- (MARKET WIRE) -- January 31, 2007 -- Axium Technologies, Inc. ( (PINKSHEETS: AXGI) is pleased to announce that it has expanded its sales, marketing and distribution operation by adding a Fairfield, New Jersey location. This expansion is initially geared to serve as a primary distribution location for CNB products on the east coast for existing CNB clients, while expanding Axium's current sales and marketing efforts to new relationships located on the east coast of the US. Axium recently announce a software integration agreement with CNB, one of the largest producers of security DVRs and cross marketing agreement. This agreement is one of the initial steps to implement this agreement.

In conjunction with this new presence, Mr. Patrick Lee has joined Axium as the General Manager of the Company's East Coast Operation. Mr. Lee comes to Axium with significant experience in sales, marketing and the security industry. His most recent tenure was as a Senior Manager with the Korea Trade Investment Promotion Agency in New York. His direct responsibilities were to assist Korean companies with bilateral trade and investment opportunities in the US. He previously served as the Chief Executive Officer of World Wide Eyes, promoting remote surveillance solutions to the securities industry.

Mr. WonSoo Chung, CEO of Axium, in discussing the new location: "This new east coast operation will not only reduce our cost to deliver service to our east coast clients, but will also serve as a stepping stone to increase our presence in the mid west and the east." He further added "We are also very excited about the addition of Mr. Patrick Lee to our management team and look forward to working with him to grow these new markets."

Axium has estimated that this new location will generate an additional $4.0 to $5.0 million in gross sales in 2007, which is not included in its present financial guidance. It is anticipated that this location will be operational by mid March of 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 is expected to reach $1.04 million, with revenues for 2007 presently projected to be $8.8 million, with gross margins of approximately 57% of revenues. The Company is presently reviewing its guidance for 2007 and will issue any upward adjustment warranted by this review, as soon as possible.

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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