SOURCE: Somerset International Group, Inc.

November 19, 2007 08:39 ET

Somerset International Group Completes Acquisition of Fire Control Electrical Systems, Inc.

Completion of Third Acquisition Strengthens Company's Portfolio of Security Companies

BEDMINSTER, NJ--(Marketwire - November 19, 2007) - Somerset International Group, Inc. (OTCBB: SOSI) (http://www.somersetinternational.com) a security technology holding company, has completed its acquisition of Fire Control Electrical Systems, Inc. (Fire Control), for $1.0 million, comprised of approximately $700,000 of cash at closing, a $150,000 zero interest seller note, and $150,000 of common stock. Unaudited revenues for the trailing twelve months ended June 30, 2007 were approximately $2.4 million. Fire Control, located in North Plainfield, New Jersey, specializes in the distribution, sale, installation, and maintenance of fire and security equipment and systems that include fire detection, video surveillance, and burglar alarm equipment.

The Letter of Intent for the purchase was announced on August 9, 2007. For the purchase price, the seller delivered, at closing and subject to purchase price adjustments, $125,000 of fiscal twelve months earnings before interest, taxes, depreciation, amortization, and owner expenses, as well as $250,000 of net current assets (defined as current assets minus total liabilities).

"We look forward to our integration with Somerset International as one of its portfolio companies," said Vincent A. Bianco, President of Fire Control. "Joining with Somerset provides us increased opportunity to sell our products and a platform from which to gain greater coverage in the security industry."

"The addition of Fire Control is an excellent achievement for Somerset as we continue to expand our business of providing proprietary security products and solutions for people and enterprises," commented John X. Adiletta, Chief Executive Officer of Somerset. "Fire Control sells, installs, and maintains advanced technology fire alarm systems from the leading suppliers in the industry; this acquisition provides us the opportunity to expand Somerset's pipeline of current products and creates attractive cross-selling opportunities."

Mr. Adiletta concluded, "We had strong third quarter results as a result of our previous acquisitions of Secure System, Inc., Meadowlands Fire, Safety, and Electrical Supply Co., Inc., and Vanwell Electronics, Inc. We expect to continue our growth and increase revenues with the addition of Fire Control. We remain dedicated to our strategy of acquiring companies that meet the demand for security products and services."

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.

Safe Harbor Statement

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

  • Contact:
    Somerset International Group, Inc.
    John X. Adiletta
    908-719-8909

    Investor Relations:
    Adam Holdsworth
    Rachel Colgate
    Erica Ruderman
    212-825-3210

    Media Relations:
    Mike Graff
    Bill Douglass
    212-825-3210