Manaris Corporation
OTC Bulletin Board : MANS

Manaris Corporation

October 19, 2006 08:29 ET

Message from the President and CEO of Manaris Corporation

Update to shareholders

MONTREAL, CANADA--(CCNMatthews - Oct. 19, 2006) - Manaris Corporation (OTCBB:MANS)(FRANKFURT WKN:255471) President and CEO, John Fraser, today released a memorandum to shareholders outlining the following.

In our fourth quarter press release dated October 4, 2006, we described the progress made during the fiscal year ended June 30, 2006. I would like now to take this opportunity to comment on our plans for the current fiscal year.

As a publicly traded holding company, Manaris faces several challenges. One such challenge is the rising cost of complying with U.S. securities laws. Another such challenge is the need to communicate more effectively with our shareholders about the progress we are making. Costs saving measures implemented during the past year were offset by an increase in professional fees, including fees attributable to the disposition of Chartrand Laframboise and to the acquisition of ITF Optical Technologies.

Our goal is to enhance shareholder value. In order to achieve this goal, we are implementing strategies to achieve revenue growth at our Avensys and C-Chip subsidiaries, as well as to reduce costs at Manaris, which is the holding company.

Record shipments at C-Chip

C-Chip shipped 4,500 units of its flagship Credit Chip 200G GPS tracking system in the first quarter of fiscal 2007. The level of these shipments is more than we accomplished in all of FY2006 for both the Credit Chip 200G and its predecessor, the Credit Chip 100 series. Today, we have a reliable product and an outstanding service offering. We are currently shipping 2,000 units per month to 13 resellers throughout the US. C-Chip continues to make progress in penetrating the U.S. market with the Credit Chip 200G.

Reducing costs

We are currently taking steps at Manaris to reduce our professional fees. We are also working on relocating our offices to the new premises in Montreal that Avensys obtained with the acquisition of ITF Optical Technologies. This consolidation is expected to reduce administrative costs at Manaris by 15-20%.

Our holding company structure is designed to eliminate overlap in costs and activities between Manaris and its subsidiaries. This permits both Avensys and C-Chip to focus on their core business activities while Manaris and its Board of Directors ensure adherence to regulatory requirements as well as provide strategic guidance.

Manaris' entire management team and Board are aware of the opportunities to grow our businesses and to justify the patience and support of our shareholders. We plan to provide additional updates regarding our progress against the above objectives during the year.

Forward-Looking Statements

Except for historical information contained herein, the statements in this news release are forward-looking statements that are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Forward-looking statements involve known and unknown risks and uncertainties, which may cause a company's actual results, performance and achievement in the future to differ materially from forecasted results, performance, and achievement. These risks and uncertainties are described in the Company's periodic filings with the Securities and Exchange Commission. The Company undertakes no obligation to publicly release the result of any revisions to these forward-looking statements that may be made to reflect events or circumstances after the date hereof, or to reflect the occurrence of unanticipated events or changes in the Company's plans or expectations.

Contact Information

  • Manaris Corporation
    John Fraser
    President and CEO
    Zenergy Communications
    Linda Farha