SOURCE: Axium Technologies, Inc.

January 18, 2007 09:30 ET

Axium Technologies Signs Agreement With Intellix Co., Ltd Resulting in Axium's Software Being Included in All Intellix DVR Products

Agreement Also Allows Axium to Market Intellix's Hardware Products to Its Security Clients in the US

PASADENA, CA -- (MARKET WIRE) -- January 18, 2007 -- Axium Technologies, Inc. ( (PINKSHEETS: AXGI) is pleased to announce that they have entered into a Memo of Understanding (MOU) with Intellix Co., Ltd of Korea. Intellix is a leading provider of Digital Video Recording (DVR) devices for the security and surveillance industry.

This agreement allows Intellix to install Axium MAXIMUM software into every DVR they manufacturer. The agreement also provides Axium rights to market and sell Intellix products within the US in conjunction with the overall security services provided by Axium to its clients. Intellix will also sell and market Axium products and services through its existing sales channels and value added partners.

Intellix is currently the provider of choice to major US security companies under private labelling arrangements. The agreement with Axium will now provide access to Axium to such security companies and sales channels.

Won Soo Chung, CEO of Axium, in discussing the agreement stated: "We are pleased to announce our new relationship with Intellix as we continue the integration of our Maximum software into the DVR products of many of the largest international DVR manufacturers. The agreement with Intellix also represents our strategy of associating with major manufacturing companies through cross marketing agreements to expose our products and services, as well as their products, to a much larger client base. We expect this relationship to enhance our revenues in 2007 by a minimum of $600,000.

Axium anticipates that the final agreement incorporating all the terms of the relationship will be completed within 90 days.


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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