Saratoga Electronic Solutions Inc.
TSX VENTURE : SAR

Saratoga Electronic Solutions Inc.

July 06, 2009 17:24 ET

Saratoga Signs ATM Services Agreement With Ultramar

Decision also taken to discontinue money remittance business

MONTREAL, QUEBEC--(Marketwire - July 6, 2009) - Saratoga Electronic Solutions Inc. ("Saratoga") (TSX VENTURE:SAR) announces that it has entered into an agreement in principle with Ultramar, the operator of a chain of service stations and convenience stores located in eastern Canada, in order to install and maintain a network of ATMs in approximately 200 Ultramar locations. The relationship between Saratoga and Ultramar is expected to have an initial term of five years, with an option to extend it for a further three years. Saratoga expects these new Ultramar sites to generate a total of approximately 1,000,000 transactions per year. The final terms of the commercial arrangement between Saratoga and Ultramar are currently being negotiated by the parties.

Saratoga also announces that it has decided to discontinue its money remittance business. In October 2006, Saratoga entered into a Memorandum of Agreement with Union Bank of the Philippines in order to develop, commercialize and distribute a money remittance platform which would enable persons residing in Canada to electronically transfer funds to persons residing in the Philippines. However, management has recently reviewed this line of business and determined there to be limited prospects of generating sufficient operating revenue in order to offset the costs associated with completing the launch of this platform. As a result, management has determined it to be in the best interests of Saratoga and its shareholders that its money remittance operations be terminated.

Management expects to incur expenses of no greater than $10,000 in connection with the closure of this division, and to realize savings of approximately $100,000 in its 2010 financial year as a result of such closure. The discontinuance of the money remittance operations is not expected to have any other material impact on the financial statements of Saratoga.

ABOUT SARATOGA

Saratoga has two principal lines of business: automatic teller machines ("ATMs") and prepaid products. Through its ATM division, Saratoga ATM Corporation Inc., Saratoga places and operates a network of ATMs in eastern Canada. Through is prepaid products division, Car-Tel Distributions Inc., Saratoga distributes to consumers point-of-sale activated prepaid cellular telephone PINs and long distance calling cards, and offers to retailers a variety of electronic gift card solutions.

FORWARD LOOKING STATEMENTS

This news release contains certain forward-looking statements concerning our future operations, economic performance and financial condition. These statements are based on certain assumptions and analyses made by us in light of our experience and our perception of historical trends, current conditions and expected future developments, as well as other factors we believe are appropriate in the circumstances. However, whether actual results and developments will conform to our expectations and predictions is subject to a number of risks, uncertainties and assumptions. Consequently, all of the forward-looking statements made in this news release are qualified by these cautionary statements, and there can be no assurance that the results or developments anticipated by us will be realized or, even if substantially realized, that they will have the expected consequences to or effects on us and our subsidiaries or their businesses or operations. We undertake no obligation and do not intend to update or revise any forward looking statements, whether as a result of new information, future events or otherwise, except as may be required under applicable law.

The TSX Venture Exchange does not accept responsibility for the adequacy or accuracy of this release.

Contact Information

  • Saratoga Electronic Solutions Inc.
    Georges Durst
    President and Chief Executive Officer
    514-529-0663