Cell-Loc Location Technologies Inc.
TSX VENTURE : LTI

Cell-Loc Location Technologies Inc.

March 03, 2008 10:15 ET

Cell-Loc Annual Revenue to Increase by $10 Million Due to New Agreement

CALGARY, ALBERTA--(Marketwire - March 3, 2008) - Cell-Loc Location Technologies Inc. (TSX VENTURE:LTI) ("Cell-Loc" or the "Company") today announced that its Brazilian subsidiary, X3 Telecomunicacoes e Equipamentos Ltda. ("X3"), has executed a contract with SASCAR Tecnologia e Seguranca Automotiva S/A ("SASCAR") under which it will provide wireless location services to SASCAR customers.

"Execution of this agreement represents a significant commercial milestone for Cell-Loc and will allow us to substantially expand our penetration of an existing market," said Sheldon Reid, President & CEO of Cell-Loc. "We are optimistic this arrangement will lead to other strategic opportunities that will result in substantial growth for the Company in Brazil and other countries where the Company has been negotiating prospective commercial agreements."

The agreement is for an initial three year term and specifies a forecast for installation of 50,000 beacons during the first year after an initial ramping up period. Revenues generated by X3 are estimated to be in excess of CAD$10 million per year based on this volume. Based on the expected installations to be derived from this contract, both the volume and the revenue of X3 would more than double from existing levels.

SASCAR is a Brazilian security and logistics company, which has annual revenues of approximately R$100 million (CAD$ 59 million) and has recently been recognized as one of the 50 fastest growing companies in Brazil. SASCAR currently provides fleet tracking and vehicle security services using Cellular networks, GSM and GPS technologies. This agreement provides for SASCAR to offer X3's network-based wireless location services to aftermarket customers in Sao Paulo as well as to insurance companies specified by X3.

"SASCAR is a company focused on technology, growth and success." said Jorge Bau, CEO of SASCAR. "The vehicle security services offered by X3's wireless location network provide us with outstanding technology which will allow us to jointly grow our customer base. X3's proven vehicle recovery record and its low cost solution make it the most competitive location based technology in the Brazilian market today. This agreement will enable SASCAR to compete more effectively in the vehicle security business in Sao Paulo and will provide a welcome addition to the services that we currently provide to our customers."

"SASCAR will play a critical role in our strategy to aggregate the "uninsured market" and also, in specific cases, will expedite transactions with the insured market in Sao Paulo." said Ariovaldo Aprikian, CEO of X3. "In addition, Sascar has a market presence in the rest of Brazil that will offer X3 opportunities to significantly grow the company's location based services in other cities in the country."

During its initial two years of operations in Brazil, X3 has successfully met the requirements of its initial customer, Itau Seguros, building the current fleet covered by its services to approximately 40,000 vehicles. In preparation for the signing of the contract with SASCAR, X3 has reached an agreement with Itau Seguros to waive the final months of its exclusivity agreement, thereby allowing X3 to offer its services to other insurance companies in Sao Paulo.

About Cell-Loc Location Technologies Inc.

Cell-Loc Location Technologies Inc. (www.cell-loc.com) is the developer of a family of network-based wireless location products that enable location-based services. Located in Calgary, Alberta, Cell-Loc currently develops, markets and supports its patented wireless location technology in North and South America and Asia, with a view to expanding globally. Cell-Loc is listed on the TSX Venture Exchange under the trading symbol: "LTI."

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About Sascar Tecnologia e Seguranca Automotiva S/A

Sascar Tecnologia e Seguranca Automotiva S/A (www.sascar.com.br/sascar_ing) is one of the largest companies in Brazil in the fleet logistics and vehicle security sector, including the largest technical support net of the country. It has established a reputation for successfully implementing new technologies and developing new products for the marketplace.

SPECIAL NOTE REGARDING FORWARD-LOOKING STATEMENTS:

Certain statements regarding Cell-Loc Location Technologies Inc. including management's assessment of future plans and operations, may constitute forward-looking statements under applicable securities laws and necessarily involve known and unknown risks and uncertainties, most of which are beyond Cell-Loc's control. These risks may cause actual financial and operating results, performance, levels of activity and achievements to differ materially from those expressed in, or implied by, such forward-looking statements. Such risks and uncertainties include, but are not limited to: the impact of general economic conditions in Canada and Brazil; industry conditions including changes in laws and regulations including adoption of new laws and regulations, and changes in how they are interpreted and enforced, both in Canada and Brazil; competition; the lack of availability of qualified personnel; fluctuations in foreign exchange or interest rates; the ability to access sufficient capital from internal and external sources; and obtaining required approvals of regulatory authorities, both in Canada and Brazil. Readers are also referred to the risk factors described in other documents that Cell-Loc files from time to time with securities regulatory authorities.

Accordingly, Cell-Loc gives no assurance nor makes any representations or warranty that the expectations conveyed by the forward-looking statements will prove to be correct and actual results may differ materially from those anticipated in the forward looking statements. Cell-Loc undertakes no obligation to publicly update or revise any forward-looking statements.

TSX Venture Exchange has neither approved nor disapproved of the contents of this news release.

Contact Information

  • Cell-Loc Location Technologies Inc.
    Sheldon Reid
    President and CEO
    (403) 569-5777
    or
    Cell-Loc Location Technologies Inc.
    Dave Guebert
    Vice President, Finance and CFO
    (403) 569-5796
    Website: www.cell-loc.com