SOURCE: Relm Holdings Inc.

June 11, 2009 11:08 ET

RELM Holdings Affirms the Pending Acquisition of Access Versalign in a Share Exchange and Sub Signs LOI to Purchase More Real Estate

WILMINGTON, DE--(Marketwire - June 11, 2009) - RELM Holdings Inc. (PINKSHEETS: RELM) affirms the pending acquisition of Access Versalign Inc. (AVI) in a share exchange.

Subject to final bank approval, this acquisition will give RELM access to cash flows and expanded business opportunities in the Information Technology industry. In 2008, on a pro-forma basis, AVI has over $9 million in assets (from a related company) as a consolidated company and generated $2.5 million in gross revenue with $319,680 in EBITDA.

AVI was organized in 2008 and in 2009 acquired Versalign Inc. (Wilmington, DE), which was founded in 1985 and currently provides targeted Information Technology solutions for corporate, professional and governmental clients in the Mid-Atlantic region. RELM is using the proprietary BCLOC model of a related company to structure the acquisition of Versalign which was based on a multiple of Versalign's 2008 EBITDA.

This acquisition will also provide RELM with new top management, additional gross revenue, plus it increases the employee base to over 25 employees. These changes plus the $200,000 in new incremental business secured by Versalign are expected to be reflected in the second quarter report of 2009.

Marc Greenberg, RELM's EVP/COO and CEO of Versalign, says, "The RELM and Access Versalign acquisition of Versalign will bring more value to the RELM shareholders and creates greater opportunities for RELM through the implementation of technology. I look forward to further develop, implement and support RELM's innovative financial services products as they are reintroduced to the market."

This acquisition by RELM marks the second of several acquisitions that are expected to be completed in 2009. Other acquisitions are planned.

Relm Real Estate Holdings, a RELM subsidiary, has signed a Letter of Intent to purchase an additional apartment complex for $10,000,000. This is in addition to the previously announced $7,000,000 LOI that was recently executed. This brings the total value of real estate under agreement to $17,000,000. Once successful due diligence is conducted on both acquisitions and the expected value is supported, they will produce a combined annual EBITDA of $1,956,955. The subsidiary expects to use stock held in portfolio to fund up to 30% of the purchase amount and has applied to several third party lenders to borrow up to 70% as a bridge to fund the acquisitions until permanent financing is secured. Mr. Greenberg added, "We are excited to overlay the latest technology to enhance the experience for the tenants and to improve the efficiency of managing the properties. We envision deploying WiFi network access, remote building and security monitoring, and electronic payment processing."

About RELM

RELM was incorporated to acquire operating businesses and is now a holding company with a primary focus on financial and information technology services along with real estate. The Company bases its business model on the acquisition of synergistic businesses with the capability to support and compliment its financial and technology products. RELM intends to lead a vertically integrated family of companies that will provide full solutions for its affiliates and clients, such as underwriting, servicing, raising capital, and commercialization, while securitizing and guaranteeing its products in the marketplace. Since 1994 the Company has conceived, designed, and developed innovative, new products that "absorb asset risk." For more information about the Company, please visit www.relmholdingsinc.com.

SAFE HARBOR

The Private Securities Litigation Reform Act of 1995 provides a safe harbor for forward-looking information made on the company's behalf. All statements, other than statements of historical facts which address the company's expectations of sources of capital or which express the company's expectation for the future with respect to financial performance or operating strategies, can be identified as forward-looking statements. Such statements made by the company are based on knowledge of the environment in which it operates, but because of the factors previously listed, as well as other factors beyond the control of the company, which include the ability of the company to implement its newly expanded business model or acquiring businesses and real estate, actual results may differ materially from the expectations expressed in the forward-looking statements.

Contact Information