SOURCE: Gatekeeper Systems Inc.

Gatekeeper Systems Inc.

October 14, 2015 08:30 ET

Gatekeeper Systems Enters Into Recurring Revenue Stop-Arm Contract in the State of Georgia

ABBOTSFORD, BC--(Marketwired - October 14, 2015) -

  • First stop-arm contract with both school and county participation
  • Gatekeeper retains 50% of fines which range from USD $300 to $1,000 per citation
  • Highlights Gatekeeper's transition from a hardware company to a higher margin, recurring revenue software company

Gatekeeper Systems Inc. ("Gatekeeper" or the "Company") (TSX VENTURE: GSI) (OTC PINK: GKPRF) (FRANKFURT: 1GK) is pleased to announce that it has entered into its first recurring revenue contract (the "Contract") for Gatekeeper's Student Protector equipment, and TIM (Traffic Infraction Management) technology with Jones County School District (the "District"), located in Georgia, USA.

Under the terms of the Contract, the District and the County Administration (the "County") will work together with the Company to issue citations for stop-arm violations using evidence from Gatekeeper's Student Protectorequipment, and TIM technology. The revenue generated from collection of citation fees will be split amongst the District, the County, and the Company, with Gatekeeper retaining 50% of the total ticketed fees. In Georgia, USA, stop-arm violation tickets begin at USD $300 for the first offence; USD $750 for the second offense; and USD $1,000 for subsequent offences within a five-year period. The Contract is for an initial five-year term, beginning on the day which the first citation is issued, and renewable at the District's option for an additional five-year term.

Doug Dyment, President and CEO commented, "We are thrilled that Jones County has chosen Gatekeeper for this project, following their initial Evaluation Phase which began in September 2014. The achievement of this contract marks a milestone for the Company, as it is our first recurring revenue contract with both a school district and County participating. We are confident that positive results and user experiences from this will help drive Gatekeeper's transition into a leading end-to-end solution provider."

Under the Contract, Gatekeeper has received approval from the Sheriff's Department in Jones County, GA, to access the National Law Enforcement Telecommunications System ("NLETS") on their behalf, which is a national database of registered owner information. By having direct access, Gatekeeper is able to directly enter the license plate information of the offending vehicle into NLETS in order to issue a citation in conjunction with the Sheriff's Office, ensuring a timely and accurate issuance process.

The District currently has a fleet of 80 buses and Gatekeeper will begin an initial installment on approximately 10% of their fleet, which will continue to be re-evaluated as the project progresses.

During the past 12 months Gatekeeper has been in discussions with twenty-three school districts, representing approximately 4,000 school buses, to install a complete and fully functioning stop-arm camera system for a specified period (the "Evaluation Phase"), subject to receipt of signed demo agreements. The Evaluation Phase enables school districts to verify the quality of Gatekeeper's Student Protector technology, as well as monitor the number of stop-arm violations experienced, prior to entering into a contract.

The Company currently has fourteen school districts throughout the United States in the Evaluation Phase, representing 975 school buses, and is hopeful that it will be awarded additional contracts following the completion of the Evaluation Phase. In the State of Georgia alone, Gatekeeper currently has nine school districts, representing 509 school buses, in the Evaluation Phase. Early indications from the systems installed as part of the Evaluation Phase show an average incident rate of 1.5 stop-arm violations per day, per bus.

The National Association of State Directors of Pupil Transportation study for 2015 indicates 12,063 stop-arm violations occurred in a single day. With an average of 180 days in a school year, the number of stop-arm violations could surpass 2 million within the State of Georgia.

Ownership of Student Protector equipment, and TIM, a proprietary software application, remains the property of Gatekeeper, thereby providing a zero capital cost solution to school districts while enabling them to share in stop-arm violation ticket revenue.

About Gatekeeper Systems Inc.

Gatekeeper provides innovative, end-to-end video safety and security solutions for mobile applications including body cameras, in-car police video systems, school bus video and stop arm camera video enforcement systems, transit bus video systems, and airborne digital recording systems for military applications.

The Company is headquartered in Abbotsford, British Columbia, Canada, and its shares are traded on the TSX Venture Exchange under the symbol "GSI", on the OTC Markets under the symbol "GKPRF", and on the Frankfurt Stock Exchange under the symbol "1GK".

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On behalf of the Board,

Douglas Dyment

President & CEO

Cautionary Note Regarding Forward-Looking Statements: This release includes certain statements and information that may contain forward-looking information within the meaning of applicable Canadian securities laws or forward-looking statements within the meaning of the United States Private Securities Litigation Reform Act of 1995. All statements in this news release, other than statements of historical facts, including statements regarding future estimates, including projected sales and revenue, plans, objectives, assumptions or expectations of future performance are forward-looking statements and contain forward-looking information. Generally, forward-looking information can be identified by the use of forward-looking terminology such as "intends" or "anticipates", or variations of such words and phrases or statements that certain actions, events or results "may", "could", "should", "would" or "occur". Forward-looking statements are based on the opinions and estimates of management as of the date such statements are made, including that new contracts will be awarded as expected by management and that the Company will achieve sales and revenues as expected and they are subject to known and unknown risks, uncertainties and other factors that may cause the actual results, level of activity, performance or achievements of the Company to be materially different from those expressed or implied by such forward-looking statements or forward-looking information, including the Company not being awarded new contracts and being unable to realize expected sales or revenues. Although management of the Company has attempted to identify important factors that could cause actual results to differ materially from those contained in forward-looking statements or forward-looking information, there may be other factors that cause results not to be as anticipated, estimated or intended. There can be no assurance that such statements will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements. Accordingly, readers should not place undue reliance on forward-looking statements and forward-looking information. The Company does not undertake to update any forward-looking statements or forward-looking information, except in accordance with applicable securities laws. To the extent that any forward-looking information constitutes future-oriented financial information or financial outlooks within the meaning of securities laws, such information is being provided to inform the reader of the potential financial impact of expected results and may not be appropriate for other purposes. We seek safe harbour.

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