Sure Trace Security Corporation
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Sure Trace Security Corporation

July 27, 2005 12:04 ET

Sure Trace Licenses Additional Technology For Use In China; Company Also Offers Details Of Previous Acquisitions; Hires CFO

PHILADELPHIA--(CCNMatthews - Jul 27, 2005) -

Sure Trace Security Corporation (OTC:SSTY) has today announced that, it has entered into a binding agreement with Sensor Media Corporation (Sensor) through its subsidiaries, to utilize Sensor's licensed technology in China, Hong Kong and Macau. It has also been granted the sole option to acquire Sensor's three subsidiaries described below within 120 days of the execution of the agreement upon mutually acceptable terms.

Sensor has indicated that it owns the Intellectual Property rights to various technologies which include solar collection systems, fingerprint imaging systems, and TV back-Plane systems. These technologies are held through Sensor's subsidiaries -- SMC Solar, SMC Biometrics and SMC TV. Sensor has licensed worldwide exclusive manufacturing and distribution rights for these technologies and has granted exclusive sub-licenses to its three wholly owned subsidiaries.

Sensor's subsidiaries (SMC Solar; SMC Biometrics; and SMC TV) have, in turn, granted SSTY an exclusive sub-license to utilize, market and also sub-license these technologies within certain territories and on the terms described below:

SMC Solar: Exclusive rights in China, Hong Kong & Macau (for solar collection technology). (a)

SMC Biometrics: Exclusive rights in China, Hong Kong & Macau (for fingerprint imaging technology). (b)

SMC TV: Exclusive rights in China, Hong Kong & Macau (for TV back-Plane technology). (b)

(a) After 120 days from the execution of the Agreement, the rights will become worldwide except for the following territories, where SMC already has existing contracts: Japan, Australia, New Zealand, Europe, Soviet Union and Africa). (b) After 120 days, the rights will become worldwide.

Also, in response to inquiries from its shareholders SSTY wanted to clarify the details and chronology of the Globe Staff and Sensor acquisitions.

SSTY previously announced letters of intent with SMC Biometric and Globe Staff Consulting (GSC). Since then, SSTY chose to concentrate its efforts in closing its deal with Suneray Beijing, and then using the connections developed/introduced through Suneray to build markets for the SSTY, SMC Biometric and GSC products/technologies.

The terms of the prior acquisition agreements were not fully met, after signing, by the parties, so current management revisited the situations and found a way to restructure the deals to the Company's benefit and to the approval of both GSC and Sensor. In the case of the GSC deal, instead of paying GSC six million ($6,000,000) dollars as consideration for the purchase, the Company was able to acquire 100% of the stock of GSC in exchange for the assumption of certain liabilities of GSC which should amount to less than $600,000. The company also issued GSC 242.5 million restricted shares of SSTY common stock as consideration for the acquisition.

SSTY has also today announced that it has resigned an updated and renegotiated agreement with SMC Biometric Inc. and its parent company Sensor Media Corporation. Under the terms of the LOI, SSTY has a four month option to close the acquisition which management believes will allow it sufficient time to secure revenue contracts for the fingerprint technology.

With the Suneray agreement now executed and in effect SSTY has once again focused its attention to building out its line of security products. In fact SSTY has commenced talks with its Chinese partners directly and European connections via GSC. In effect, SSTY now has the time to enter into revenue producing contracts before it has to fully pay for the acquisitions.

The Company also today announced the hiring of Joseph J. Repko, CPA as its CFO.

Mr. Repko brings many talents to the Company. He founded a full service accounting firm in 1984 with clients in a wide range of industries and services including manufacturing, video production, publishing, banking, financial, medical services, mining, automotive services, nonprofit and government entities. The services provided for these clients include compilation review, audit, tax, MIS consultation, SEC filings, IPO's and foreign operations. It has offices in Springfield, Pennsylvania (a suburb of Philadelphia) and in Jupiter Florida. Mr. Repko will work both out of the Philadelphia headquarters and a Florida location, near the Company's auditors.

About Sure Trace Security Corporation

Sure Trace is one of the premier systems integrators for anti-counterfeiting and security surveillance applications and a world-class provider of integrated tracking devices. The company intends to deliver turnkey solutions for governments, armed forces and industry, through its own proprietary technology and through aggregating the technology, products and services of third parties via licensing agreements and or joint ventures. For more information go to: www.suretrace.com.

About Sensor Media Corporation

Sensor Media Corporation (SMC) is a leading developer of unique and innovative products that use thin film biometric technologies. The foundation of SMC's products is a biometric polymer solution that displaces the need to use silicon. SMC products include, and are sold via SMC Biometric Inc., a fingerprint sensor that provide innovative security solutions applicable to any wallet card including National Identity Cards, Credit Cards, Medical ID Cards, Passports, etc .SMC Solar Inc., a solar collection technology product that significantly reduces costs when compared to traditional silicon based solar collection systems. SMC TV Inc., an innovative television back-plane technology made from plastic. Sensor Media Corporation has a research and design laboratory in Abbottsford, British Columbia, Canada. The lab is equipped and staffed to develop client specific applications for all three of its divisions. You can visit our website at www.sensormedia.net.

Safe Harbor: This press release contains forward-looking information within the meaning of section 27A of the Securities Act of 1933 and section 21E of the Securities Exchange Act of 1934 and is subject to the Safe Harbor created by those sections. This material contains statements about expected future events and/or financial results that are forward-looking in nature and subject to risks and uncertainties. Such forward-looking statements, by definition, involve risks, uncertainties and other factors, which may cause the actual results, performance or achievements of Sure Trace to be materially different from the statements made herein.

Contact Information

  • Sure Trace Security Corporation
    by
    De Jong & Associates
    Ron de Jong, 760-943-9065
    email: ron@dejong.org