SOURCE: Visual Management Systems, Inc.

Visual Management Systems, Inc.

March 09, 2010 08:29 ET

Intelligent Product Development Group Enters Into Master Distribution Agreement

TOMS RIVER, NJ--(Marketwire - March 9, 2010) -  Intelligent Product Development Group, LLC. (iPDG), a subsidiary of Visual Management Systems, Inc. (OTCBB: VMSY), a leading developer, manufacturer and provider of video surveillance technologies, has entered into a Master Distribution Agreement with a Lafayette, LA based logistics consortium operating under the name VMS Dealer Group, LLC.

The agreement calls for VMS Dealer Group to market various iPDG product lines including the company's flagship TrueHybrid® SP, and its Flex TH-Touch and Flex TH-Go series of digital, network, hybrid and wireless video surveillance solutions. VMS Dealer Group will offer the iPDG products throughout the United States through security specific distributors, systems integrators and security dealers. Additionally, the master distributor will serve as a principal logistics headquarters, warehousing and shipping facility as well as base of operations for national dealer training and regional OEM sales. VMS Dealer Group has OEM access to iPDG's full product platform, software development resources and use of selected trademarks, trade names and products. Millard P. Dumesnil III, the President of VMS Dealer Group, said, "There are many synergies between our company and iPDG. Our network has been very receptive to the products and services we can offer through our agreement. It seems obvious that we have gotten off to a fast start based on how quickly the orders and contracts began coming in. It is a very exciting opportunity for us and our business partners and associates."

In consideration of privileges granted by the Master Distribution Agreement, VMS Dealer Group has agreed to commit to minimum quarterly purchase volume levels of $750,000 in iPDG products for distribution to their channel. As part of the Agreement they have also placed an initial stocking order sufficient to satisfy their requirements year-to-date. They are currently in discussions with several national and regional distributors, systems integrators and security dealers to begin carrying and offering the iPDG product lines.

Management of VMS Dealer Group has extensive experience in national and regional security products distribution, enterprise commodity distribution, logistics, finance and sales in addition to residential and commercial construction trades. "When the VMS-DG management team detailed the experience that the partners had in every relevant field, we immediately recognized the potential," said Jason Gonzalez, CEO of Visual Management Systems, Inc. He continued to say, "After one of their related companies operated a successful regional dealership, we entertained initial conversations about the idea. They showed their commitment by expanding their office space and warehousing, recruiting top-tier sales management and demonstrating their willingness to acquire a distribution-ready inventory. We are convinced about their ability to facilitate distribution on a national level."

The execution of the Agreement follows negotiations between the parties during the months of January and February. It required scaled-up forecasting on iPDG's part. "Without an organization like VMS-DG, iPDG had planned to build its dealer organization first, and then move to a distribution platform," Gonzalez said. "The fact that we can start with distribution and then bring dealers into the fold makes our growth more orderly. This was definitely a right-place, right-time scenario."

VMS Dealer Group hired Robert Russell, a 20-year industry veteran, to head up its distribution sales division. Russell, whose most recent position was with Tyco subsidiary, DSC, commented on the Master Distribution Agreement between the two companies, "the iPDG product line is the first of its kind. We are thrilled with the reception we've had by some of the largest and most influential distributors in the industry. The commitment to success on behalf of both iPDG and our company is exhilarating. We view this as an once-in-a-lifetime opportunity to introduce something entirely new to the security industry."

Gonzalez added, "We are very pleased with our progress. We believe these early successes validate our new business plan and should help with our financing efforts." He concluded by saying, "We believe this agreement is a huge win for iPDG. Even at minimum volumes, it facilitates our ramp up and speeds up progress to execution of the new plan. Most importantly, it allows the company to keep a very tight focus on marketing and branding." 

About Visual Management Systems, Inc. and Intelligent Product Development Group

Visual Management Systems, Inc. and its subsidiaries Intelligent Product Development Group, LLC and Visual Management Systems, LLC are committed to developing and implementing industry-leading video security technology at affordable price points. For more information, visit www.intelligentpdg.com or call 877-323-CCTV.

About VMS Dealer Group, LLC

VMS Dealer Group, LLC is headquartered in Lafayette, LA. The company is a national distribution and logistics firm specializing in delivering OEM technologies to the security and surveillance market. For corporate or sales inquiries, contact Robert Russell of VMS Dealer Group at 228-229-5335.

Safe Harbor Statement under the Private Securities Litigation Reform Act of 1995

Certain statements in this press release constitute 'forward-looking statements' within the meaning of the Private Securities Litigation Reform Act of 1995. Such forward-looking statements involve known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements of the company to be materially different from any future results, performances or achievements express or implied by such forward-looking statements. The forward-looking statements are subject to risks and uncertainties including, without limitation, changes in levels of competition, possible loss of customers, the company's ability to attract and retain key personnel, the company's ability to raise capital, the continued cooperation of creditors and vendors, national and local economic conditions, the ability of the company to reach agreements with the proposed distributor, joint venture and integration partners discussed in this release, conditions and trends in the video surveillance and security industries in general, the ability of the company to attract enterprise-scale customers, changes in interest rates, commercial acceptance of the company's products, the effect of government regulation on the company's operations and other factors described from time to time in the company's filings with the Securities and Exchange Commission.

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