LOVELAND, Colo., Sept. 5 /PRNewswire-FirstCall/ -- A4S Security, Inc.(Nasdaq: SWAT, SWATW; NYSE Arca: SWAT, SWATW), a leading provider of digital video surveillance solutions, today announced that on September 3, 2006 itexecuted a Plan of Merger to acquire privately held Westminster, Colorado-based Vizer Group, Inc. ("Vizer") and Avurt International, Inc. ("Avurt"), two commonly owned and managed companies.
Vizer's specialty is facility security integration including web-basedaccess control, video surveillance and intrusion detection, conveniently accessible through the use of multiple network based devices, including computers, cell phones and PDA's. With access and monitoring devices connected through the network, installation and business re-location costs aresignificantly less than traditional hard wired systems. Vizer's uniqueproprietary "e-Link" product is built around a web hosted security services model that provides a business complete control over access, alarms, keycards, and video surveillance, all remotely. Vizer's customers include Remington Arms, Johnson & Wales University, ConAgra Foods and AmeriquestMortgage to name a few.
Avurt distributes and produces non-lethal personal protection devices andcompliance products currently in use by federal and state agencies. Thedevices accurately fire a projectile up to sixty feet away that breaks onimpact dispersing a cloud of potent pepper spray based powder causing a severe debilitating reaction in the target area, effective on both humans andanimals. A new proprietary (patent pending) handheld launcher is scheduled tobe released by Avurt late in 2006. In addition to the current law enforcement customer base, the new launcher is anticipated to be marketed to: securityguards, postal carriers, animal control officers, animal owners, campers,hikers, bikers, aid workers, military police and individual consumers andtheir families that desire additional personal protection.
Greg Pusey , Chairman of A4S, noted: "The Vizer and Avurt acquisitions areexpected to significantly broaden our reach into the vast and rapidly growing security market by adding solutions for commercial facilities and non-lethal personal protection devices to A4S's existing ShiftWatch mobile digital videotransportation product line. The product development associated with the newpatent pending launcher is proceeding on schedule and the bench prototype is operating very effectively. We anticipate pre-production prototypes in 30 to45 days. The execution of the merger agreement puts us on track to close theacquisitions during the fourth quarter of 2006, and become one integrated company focused on rapid growth and to further enhance shareholder value."
Scott Sutton , President and founder of Avurt and Vizer, commented: "We are excited to be combining with the SWAT team to create an expanded base of high tech security products and services. Our new Avurt launcher (patent pending)is an exciting development that our existing customer base has been asking forand it is a unique and revolutionary personal protection tool for consumers. It is much more durable, smaller and lighter and we believe more effectivethan the current options on the market today and will fit easily in a purse,on a belt or backpack, or on a law enforcement officer's duty belt. We believe our launcher solution will become the non-lethal device of choice due to itssafety, reliability and ease of use." He went on to say "this product was developed after numerous in-depth focus group evaluations including feedback from women's groups, security personnel, law enforcement officers and otherpotential consumers. We expect to begin delivering our new launcher in thefirst quarter of 2007."
"Based upon studies of a number of market verticals, we believe thepotential market for the new launcher is extremely large and includes consumers, security personnel, police, animal control officers, deliverypersonnel, pet owners wishing to protect their pets, campers, bikers, andhikers among others, with potential demand in the millions of units. Webelieve this box and ship product has significant international market potential. It is also noteworthy that this product generates significantfollow-on consumable sales of ammunition and air canisters that are requiredwith each usage of the launcher. Upon completion of final prototypes and commencing manufacturing, we expect to begin pre-sales through an aggressive marketing campaign including on-line sales initiatives," Mr. Sutton concluded.
The acquisition of the commonly controlled companies calls for a purchase price for the combined companies, primarily payable in A4S common stock,totaling
A4S Business Update
Tom Marinelli , CEO of A4S, commented on recent business activity: "OurA4S ShiftWatch division continues to add new customers including recently announced additions or customer expansions of ShiftWatch TVS contract opportunities. These include the Greater Cleveland Regional Transit Authority(
Brian McLean, Transit Manager of the City of Vacaville stated, "The City of Vacaville Transit Department is extremely happy with our decision to outfitour entire transit fleet with the ShiftWatch surveillance product. ShiftWatch demonstrated a rugged, well-designed and modular security system that met allof our criteria for quality, performance and price. The quality of thecaptured video and sound is simply amazing, and viewing the video from the Playback Station PC is incredibly easy and intuitive. The City's TransitDepartment appreciates ShiftWatch's professionalism throughout the entirepurchase, installation and training process."
A4S also noted that its board of directors has approved the schedule forits recently announced 2006 Annual Shareholder meeting. The meeting, subjectto finalization and distribution of required proxy materials, will be held September 28, 2006 at a location to be announced in the Denver ,Colorado area. Shareholders of record as of July 31, 2006 will be entitled to vote at themeeting, either by proxy or in person. A4S currently anticipates including the following topics for vote at the meeting: changing the company name to Security With Advanced Technology, Inc., re-electing directors and increasing the common shares reserved for issuance under A4S's 2004 Stock Incentive Plan.As previously announced, the proposed new company name was chosen to moreaccurately reflect the company's more extensive business and line of products in the marketplace and is designed to tie A4S's name to its stock symbol "SWAT." The name change will also require an amendment to A4S's Articles of Incorporation and a change in the trading CUSIP number of the company and thenan exchange of all stock certificates for new ones reflecting the new name and CUSIP number.