SOURCE: Remote Surveillance Technologies

February 23, 2007 09:00 ET

Remote Surveillance Technologies Signs Agreement to Acquire Applied Security Logistics

Los Angeles Based Electronic Security Integrator to Provide Technical Expertise and Key Customers and Accounts to the Company, While Adding an Expected $1.5 Million in Revenues to the Company in Next 12 Months

IRVINE, CA -- (MARKET WIRE) -- February 23, 2007 -- Remote Surveillance Technologies, Inc. ("RST or the "Company") (www.rsttech.com) (PINKSHEETS: RSUR) is pleased to announce the signing of a Letter Of Intent (LOI) to acquire Applied Security Logistics (ASL), an electronic security integrator located in the Los Angeles area. RST will acquire 100% of the stock of the company in a stock exchange, and run it as a wholly owned subsidiary of the Company.

Applied Security Logistics will add significant customers and contacts to RST's existing portfolio and many of its clients are expected to benefit from the video monitoring services currently offered by RST. The founder of ASL, Thomas M. McCloskey, who will continue with ASL after the acquisition, and be added to the senior management team of RST, has over twenty-seven years experience in consultation and commissioning of sensitive large scale integrated security systems for Fortune 1000, governments, military and defense contractors on a global scale. Adding the technical expertise that ASL offers, will enhance Remote Surveillance performance on its installation contracts, as well as enhance its ability to add new business and clients to its portfolio. It is the intent of both parties to proceed rapidly with their due diligence review in an attempt to close the acquisition by the end of first quarter 2007.

Remote Surveillance Technologies expects that this acquisition will yield approximately $1.0 to $1.5 million in revenue to the Company within the next 12 months at profit margins of approximately 20%.

Dr. Laurence Harper, President and CEO of RST, in describing these developments stated, "Applied Security Logistics knowledge in the electronic security market and its valuable customer and client list will create positive synergies for the Company. This is the first of many potential acquisitions the Company will be making, as we exploit opportunities for consolidation in the industry, as well as the ability to cross market monitoring services provided by RST to an existing base of clients in each acquisition. The Company intends to actively pursue opportunities that will accelerate the development and deployment of new product and service offerings, enhance its market opportunities and accelerate the Company's entry into attractive geographical markets. We welcome Tom to our senior management team."

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ABOUT REMOTE SURVEILLANCE TECHNOLOGIES

Remote Surveillance Technologies is a full-service electronic security systems integrator and remote surveillance monitoring company. RST provides security analysis, systems design, equipment purchase, installation, and integration for off-site video monitoring. RST revenue is generated from both recurring video monitoring fees and systems installations. The monitoring advantages offered by RST to its clients include: the elimination of false alarms; incident verification at physical plant and with corporate vehicles; immediate notification to law enforcement; description and physical location of perpetrator(s) to law enforcement during the crime; immediate voice interaction with perpetrator(s); 24/7 on-site digital image recording and storage; redundant recording of events at monitoring station to preserve evidence, alarm indicator points for ease of reviewing incidents; and the significant lowering of the clients' security costs by reducing or eliminating on-site guard personnel.

The Company spent most of 2006, its initial year of business operations, developing the Company's infrastructure, building the 24/7 monitoring facility and soliciting contracts and accounts. Clients of the Company currently include: SC Fuels, Cajon Valley School District, Charriol Geneve Jewelers, Southland Transit and two very large high-tech companies in Southern California. The Company projects reaching $4.6 million of gross sales in 2007 and $16,500,000 of gross sales in 2008. Gross margins should exceed 40% in both 2007 and 2008, with the Company realizing net profits of $300,000 in 2007 and $1,600,000 in 2008.

ABOUT APPLIED SECURITY LOGISTICS

Applied Security Logistics (ASL) specializes in highly technical system designs, installation, and services for Access Control, Biometric, Perimeter Surveillance, CCTV Systems and Digital Video Storage and Retrieval Systems, that comprise some of the most sophisticated security systems in the Country. Applied Security Logistics was formed to provide security systems integration and consultation services to government, military, corporate Fortune 1000; executive/key employee protection, and sensitive covert applications.

FORWARD-LOOKING STATEMENT: This press release contains forward-looking statements, including expected industry patterns and other financial and business results that involve known and unknown risks, uncertainties and other factors that may cause our actual results, levels of activity, performance or achievements to differ materially from results expressed or implied by this press release. Such risk factors include, among others: the sustainability of recent growth rates in the Security and Surveillance industry; the positioning of RST in the market; ability to integrate acquired companies and technology; ability to retain key employees; ability to successfully combine product offerings and customer acceptance of combined products; general market conditions, fluctuations in currency exchange rates, changes to operating systems and product strategy by vendors of operating systems; and whether RST can successfully gain market acceptance. Actual results may differ materially from those contained in the forward-looking statements in this press release.

Contact Information

  • CONTACT INFORMATION:

    Remote Surveillance Technologies, Inc.
    Dr. Laurence H. Harper
    (949) 829-9300
    harper@rsttech.com

    INVESTOR RELATIONS CONTACT:

    Messrs. Gerald Kieft or Ryan Audin
    Wall Street Resources, Inc.
    2646 SW Mapp Road, Suite 303
    Palm City, Florida 34990
    (772) 219-7525
    http://www.wallstreetresources.net