SOURCE: Axium Technologies, Inc

January 25, 2007 09:30 ET

Axium Technologies Signs Agreement to Acquire Infinity Security Systems, Inc.

Acquisition Will Provide a National Distribution Network for Axium Products, and a Projected $6 Million Increase in Gross Revenues in 2007

PASADENA, CA -- (MARKET WIRE) -- January 25, 2007 -- Axium Technologies, Inc. ( (PINKSHEETS: AXGI) is pleased to announce that it has entered into a Memo of Understanding (MOU) to purchase Infinity Security Systems, Inc. of Monterey Park, CA.

Won Soo Chung, CEO of Axium, states that "This acquisition provides Axium with a ready made distribution network for its products in the security industry. Infinity has 9 years of expertise and contacts in this security sector which provides sales and marketing expertise not available within Axium today."

Mr. Roman Lee, CEO of Infinity, in discussing the agreement stated: "Our new relationship with Axium allows Infinity to expand our offerings to other manufacturers and develop alliances with many other good Korean Companies where Axium already has existing alliances." Infinity is also the exclusive distributor of Intellix DVR hardware in the U.S., and Axium recently announced signing a software integration and cross marketing agreement with them.

Axium has estimated that this acquisition will generate an additional $6.0 million in 2007, which is not included in its present financial guidance. It is anticipated that the acquisition will be completed via an exchange of stock by the end of February.

Axium is presently reviewing its financial guidance of $8.8 million, with gross margins of approximately 57% of revenues for a probable substantial increase. Once this review is completed, the Company will issue additional financial guidance for 2007, which will include the projected results of this and several recent announcements.


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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