SOURCE: Relm Holdings Inc.

October 05, 2009 11:38 ET

RELM Holdings Inc. Has Purchased 76% of Access Versalign Inc.

WILMINGTON, DE--(Marketwire - October 5, 2009) - RELM HOLDINGS INC. (PINKSHEETS: RELM) announces the restructuring of the purchase of Access Versalign Inc. (AVI) and rescinds the planned merger that was announced on May 5, 2009.

Previously, both AVI and RELM agreed to merge through a share exchange; however, it was later determined that the acquisition of a 76% majority interest in AVI would better suit the relationship and planned future acquisitions. AVI shareholders will receive 14.02 shares of RELM in this transaction as was previously announced. AVI is a consolidated subsidiary of RELM and the senior management team of AVI will also continue to oversee the day to day operations of RELM.

As announced earlier, 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 had over $9 million in assets as a consolidated company and generated $2.5 million in revenue with $319,680 in EBITDA. Through the second quarter of 2009 AVI's wholly-owned subsidiary, Versalign Inc., produced total revenue of $1.1 million with an EBITDA of $142,680 and pretax income of $24,245. RELM valued 100% of AVI at $3,196,800 at the end of 2008.

AVI was organized in 2008 and acquired 100% of Versalign on February 20, 2009. Versalign was founded in 1985 and currently provides targeted information technology solutions for corporate, professional and governmental clients in the Mid-Atlantic region. The proprietary BCLOC financing product of $6 million was used to help restructure the Versalign bank loan, which is expected to provide $2.255 million in new working capital and funds to pay off the existing $3.745 million bank loan.

This acquisition increases RELM's employee base to over 25 employees and it expects to bring continued growth because in the beginning of the second quarter of 2009, Access Versalign secured more than $200,000 in incremental business and expects to maintain a positive profit margin throughout the balance of 2009.

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."

About AVI

AVI was organized in 2008 and in 2009 acquired Versalign Inc., which was founded in 1985 and currently provides targeted Information Technology solutions for corporate, professional and governmental clients in the Mid-Atlantic region. AVI provides RELM with new top management plus it increases the employee base to over 25 employees. This acquisition gives RELM access to cash flows and expanded business opportunities in the information technology industry. For more information about Versalign, please visit www.versalign.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 and acquire businesses and real estate, actual results may differ materially from the expectations expressed in the forward-looking statements.

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