SOURCE: Somerset International Group, Inc.

August 14, 2007 11:52 ET

Somerset International Group Announces Second Quarter Results and Provides Business Update

BEDMINSTER, NJ--(Marketwire - August 14, 2007) - Somerset International Group, Inc. (OTCBB: SOSI), a security technology holding company, today announced financial results for the quarter and six months ended June 30, 2007.

John X. Adiletta, President and Chief Executive Officer of Somerset, commented, "Growing safety and security concerns continue to drive demand for new products and services that effectively protect the general population, as well as major organizations against emergency situations such as terrorism, fire, and crime. Since our formation in 2004, we have made great strides towards becoming a formidable presence in this market. Specifically, we have successfully acquired two companies in the sector and recently announced our third planned acquisition. Upon completion of the third acquisition, we expect to be at a revenue run-rate in excess of $7.0 million across our portfolio companies.

"Through our acquisitions we have begun diversifying our revenue streams, which will be reflected in the second half of 2007. Revenues within the Secure System subsidiary were up for the six months, although down slightly for the second quarter, which reflects the uneven timing of orders. This was offset by an increase in our recurring maintenance revenues, as we are taking steps to improve the overall quality and recurring nature of our revenues. Moreover, we look forward to the strong cross-selling opportunities that will be available as a result of our latest acquisitions."

Mr. Adiletta concluded, "We have now demonstrated our ability to acquire and integrate complementary businesses that meet our strict criteria. Specifically, we are targeting companies with high growth rates, as well as established customer bases and products that can benefit from cross-selling across our portfolio companies. Moreover, we seek companies with strong margins that are at or near profitability, and which we can acquire at favorable private-to-public market valuations. Management has extensive experience in identifying and evaluating exceptional business opportunities, setting strategic direction and managing all aspects of growth. Looking ahead, our plan is acquire at least 3 additional companies, while maintaining an organic growth rate of at least 10-15%, in order to achieve a revenue run-rate of at least $50 million within 3 years."

Revenues for the three months ended June 30, 2007 were $477,703 versus $561,559 for the second quarter of 2006. Revenues for the six months ended June 30, 2007 were $1.1 million versus $906,876 for the comparable six-month period of 2006. Net loss attributable to common stockholders for the three months ended June 30, 2007 was $458,261 or $(0.06) per share versus $233,669 or $(0.04) per share in the second quarter of 2006. Net loss attributable to common stockholders was $691,835 or $(0.10) per share versus $743,540 or $(0.12) for the comparable period last year.

About Somerset International Group, Inc.

Somerset International Group, Inc. finds undervalued technology investments aligned around the exponential growth in concern and demand for security and the acquisition of profitable and near term profitable private small- and medium-sized businesses that provide proprietary security products and solutions for people and enterprises -- from personal safety to information security. Additional information about the company is available at: http://www.somersetinternational.com.

About Secure System, Inc.

Secure System, Inc. provides personal alarm systems, wireless transmitters and receivers, and personal alarm locators. The company currently serves colleges and universities and medical and mental health facilities. Its products are also easily adaptable for office campuses, residential facilities, and correctional facilities. The system works by providing an individual with a wireless personal alarm locater with which they can summon help and be located by the pressing of a button. Additional information about the company is available at: http://www.securesysteminc.com.

About Meadowlands Fire, Safety, and Electrical Supply Co., Inc./Vanwell Electronics, Inc.

Meadowlands and Vanwell specialize in the distribution, sale, installation and maintenance of fire and security equipment and systems that include fire detection, video surveillance, and burglar alarm equipment. Meadowlands and Vanwell have similar product availability from distinct manufacturers. This affords the opportunity to provide a wide array of specified equipment with the flexibility to offer cost effective alternates when appropriate. The products encompass complete lines of fire, CCTV (closed circuit TV), communications and PA systems; services include maintenance contracts, monitoring services and system engineering. Additional information about the company is available at: http://www.meadowlandselec.com/index.html

Statements about our future expectations are "forward-looking statements" within the meaning of applicable Federal Securities Laws, and are not guarantees of future performance. When used herein, the words "may," "will," "should," "anticipate," "believe," "appear," "intend," "plan," "expect," "estimate," "approximate," and similar expressions are intended to identify such forward-looking statements. These statements involve risks and uncertainties inherent in our business, including those set forth under the caption "Risk Factors" in our most recent Registration Statement on Form SB-2 dated December 6, 2006 filed with the SEC and other filings with the SEC, and are subject to change at any time. Our actual results could differ materially from these forward-looking statements. We undertake no obligation to update publicly any forward-looking statement.

Contact Information

  • Investor Relations:
    David K. Waldman/Klea K. Theoharis
    Crescendo Communications, LLC
    (212) 671-1020