SOURCE: NavStar Technologies, Inc.

NavStar Technologies, Inc.

September 22, 2009 09:00 ET

NavStar Technologies, Inc. Finalizes Software Deal With Vortex Solution

Service Revenue From Agreement Will Add $37M to Core Business

ANAHEIM, CA--(Marketwire - September 22, 2009) - NavStar Technologies, Inc. (PINKSHEETS: NVSR), a firm focused on developing and commercializing multinational asset tracking and monitoring devices for vehicles and high-value cargo, announced today the completion of a strategic relationship with Vortex Solution, a Canadian company with offices in Montreal and New York City, to provide annuity-based services.

N. Douglas Pritt, Chairman and CEO, confirmed that a strategic licensing agreement has been finalized and that the agreement includes a combination of stock, cash and a per-user royalty payment.

"We have spent the past two weeks field testing the Vortex software and are convinced that they know our hardware about as well as we do," said N. Douglas Pritt, Chairman & CEO, NavStar Technologies, Inc. "There are several thousand NavStar units already in service on the Vortex platform, and the customers are extremely satisfied with the service. With 65 software engineers, Vortex can supplement our engineering team, and together we will have the most talented support team in the industry. As we conclude our sales efforts in Japan, Korea, Mexico and the US, the Vortex experience with our hardware will be invaluable."

"We are pleased that the negotiations over the past three weeks have resulted in the Vortex/NavStar strategic relationship. We firmly believe that our experience with the NavStar hardware will allow us to respond quickly to a customer's request for customized features and to provide on-going technical support that cannot be matched anywhere in the world," said Guy Michon, Vice President, Vortex Solution.

The relationship with Vortex will provide NavStar with software services revenue that is being renewed by customers annually for 3 to 5 years. The annuitized revenue provided by these software services provides a significant boost to revenue and profitability. The value created through the addition of software revenue is reflected in the following financial projections:


Year ($M)          2009         2010         2011         2012         2013
                   ----         ----         ----         ----         ----
Revenue             2.2         17.2         26.4         35.3         46.9
COG                 1.2          9.3         15.1         20.5         27.1
Gross Profit        1.0          7.9         11.3         14.8         19.8
SG&A                1.5          3.7          5.3          6.9          8.6
EBITDA              (.5)         4.2          6.0          7.9         11.3


FORWARD-LOOKING STATEMENT

This press release contains forward-looking statements within the meaning of U.S. federal securities laws, that involve known and unknown risks and uncertainties that may cause actual results to differ materially from those expressed or implied in this press release.

About NavStar Technologies, Inc.

NavStar is focused on the creation of products and services that provide tracking and monitoring of vehicles and high value cargo, equipment, and other valuable and personal assets. For further information about NavStar Technologies, Inc. visit the company's website at www.navstarinc.com.

About Vortex Solution

Vortex Solution is a full-service provider of Internet and Intranet services with the ability to fully leverage the power and speed of the Internet to solve complex and business-critical problems. For further information about Vortex Solution visit the company's website at www.vortexsolution.com.

Contact Information

  • CONTACT:
    NavStar Technologies, Inc.
    Patrick Bannister
    714-502-6900
    Email Contact