Nuvo Network Management Inc.

Nuvo Network Management Inc.

April 10, 2006 17:24 ET

NUVO and IBM Canada Expand Alliance : IBM Security Certification Business Unit to be Transferred to NUVO

OTTAWA, ONTARIO--(CCNMatthews - April 10, 2006) - NUVO Network Management Inc. (TSX VENTURE:NVO) today announced they have signed a two-part agreement with IBM Canada that will broaden NUVO's services for IBM's managed services customers in the mid-market.

Through this agreement, the two companies will deliver a powerful combination of solutions, technologies and services to the security market and Canada's mid-market (companies with annual revenues of $50 million - $1 billion). Today's agreement includes:

- Transfer to NUVO of IBM's 3rd party security standards testing
business, a team of highly qualified and competent IT security
testing specialists with a world-class reputation in servicing
private industry and government organizations.

- Provision of managed services by NUVO for IBM's mid-market
outsourcing services program in Canada.

Under the terms of the agreement, IBM will acquire a $680,000 common share equity position in NUVO in return for transferring to NUVO the security standards testing business. In addition, IBM can earn warrants of up to 1.5 million shares, proportional to incremental revenues received for the mid-market outsourcing services business generated by IBM. The full extent of the equity agreement will be achieved at $15 million in contract value over the next 30 months. Closing of the acquisition of the security standards testing business is subject to customary closing conditions and is anticipated to occur on April 28, 2006.

The management of 3rd party security infrastructure is one of NUVO's fastest growing business segments.

The transfer of IBM's 3rd party standards testing business will add breadth and depth to the overall security solutions that NUVO can provide to clients. For example, NUVO will now have both "Black Hat" attacker and "White Hat" defender expertise under one roof, bolstering our ability to both identify and resolve security vulnerabilities for our customers. As well, the security standards testing business adds certification expertise in Common Criteria, FIPS, Interac and VISA evaluations to the security solutions that NUVO is able to provide.

With more than a decade of proven IT management experience across the entire IT landscape of LAN, WAN, IP telephony, server, security and applications, NUVO provides solid, proven managed services for IBM mid-market customers. As IT performance and up-time availability become increasingly essential to businesses in the mid-market, this NUVO/IBM solution will enable them to benefit cost-effectively from resilient 24/7 service from redundant and geographically diverse operations centers, high quality and consistent ITIL-based service delivery, and automated tools and integrated workflow processes.

About NUVO

NUVO (TSX Venture Exchange: NVO) provides remote management and protection of IT infrastructures for businesses worldwide to maximize the availability of their computing infrastructure. NUVO enables our customers to excel by delivering fully integrated, proactive management services and business data. This provides the critical information needed for effective analysis and decision-making to maximize performance and control costs. NUVO achieves this through certified experts, best-of-class technology, deep integration, highly automated processes, and best practices in a 24x7, resilient infrastructure.

The TSX Venture Exchange has neither approved nor disapproved the content of this press release.

Contact Information

  • NUVO Network Management Inc.
    Jerry Davis
    VP Marketing
    (613) 721-6886