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RemoteMDx, Inc.: RemoteMDx and euromicron AG Announce Distribution and Licensing Agreement and a $2.5 Million Private Placement

^{Published on 2009-07-13 06:54:37, Last Modified on 2009-07-13 06:54:44 - Market Wire}
 

SANDY, UT--(Marketwire - July 13, 2009) - RemoteMDx, Inc. (OTCBB: [ RMDX ]) and euromicron AG announced a six year agreement with an additional four years of optional renewal periods (10 years total), granting euromicron an exclusive License to manufacture, market and distribute the TrackerPAL portfolio of monitoring products and services and to provide related service offerings in eighteen (18) European Countries. The TrackerPAL device, offered by the company's SecureAlert subsidiary, provides an integrated GPS and Electronic Monitoring Solution in support of realtime offender tracking, monitoring and intervention. The company currently manages various offender services for a population of over 14,500 offenders utilized throughout the United States by more than 650 judicial district, probation, parole and policing agencies, requiring or benefitting from ongoing persistent and secured electronic monitoring. Euromicron, a publicly traded German company with 2008 revenues of over 164 million Euros is a leading network and infrastructure technology company providing data networks to major corporate entities throughout Europe. The terms of the agreement include euromicron's establishment of a European Territory-based monitoring center and completing certain other milestones within the first two years.

The agreement provides for various revenue opportunities to RemoteMDx - SecureAlert within this territory related to revenues from agreed to margins on the sale of TrackerPAL devices, royalties from recurring revenue streams related to electronic monitoring and from consulting fees derived from contracted professional services for training and support through the designated euromicron distribution territory.

The licensing and distribution agreement provides for joint and collaborative expansion into and throughout the exclusive territory of Albania, Austria, Bosnia & Herzegovina, Bulgaria, Croatia, Czech Republic, Germany, Greece, Hungary, Italy, Kosovo, Macedonia, Poland, Serbia, Slovakia, Slovenia, Switzerland, and Turkey. Together, these countries represent a combined potential to support upwards of 50,000 electronically monitored offenders including inmates, parolees, probationers and pre-trial defendants in local, federal and military jurisdictions.

Separately, the parties also announced a $2.5 million investment in RemoteMDx Stock by euromicron priced at the then current market share price of $0.20 cents per share, acquiring 12,500,000 shares of the company's common shares ("restricted") on May 28, 2009, previously disclosed in a June 2, 2009 8K filing.

According to euromicron's representative Dr. Edgar Bernardi (former Executive Board Member, COO and Chief Sales & Marketing Officer), "euromicron is well-positioned to leverage its core competencies in communications, data and security networks to capitalize on the existing and synergistic GPS tracking technologies of RemoteMDx and SecureAlert in an extended effort to exploit the need to bring technologically advanced offender tracking and monitoring solutions to the European marketplace."

He continued, "We are jointly committed to a long-term sales, marketing and financial relationship, which enjoins the two company's sales, marketing, monitoring and TrackerPAL deployment initiatives across much of Europe and throughout our licensed territory. The SecureAlert product suite is an excellent add-on to the communications, data and security fiber optics networks that we have been a leader in providing to major telecom and other major business enterprises throughout this important and growing part of the European community."

According to John Hastings (President & COO of RemoteMDx and SecureAlert), "This licensing and distribution agreement provides for several major milestones for the Company. First, it further demonstrates that the market demand for SecureAlert's portfolio of TrackerPAL products and offender monitoring solutions is a global market opportunity. Secondly, we are very gratified that a major European leader in the advanced data network space has chosen to partner with and invest in our firm. Additionally, given the large market potential within the 18 countries under this agreement, RemoteMDx will benefit over the near term through the ongoing revenue stream that this agreement will generate. This agreement should lead to much increased visibility for the company in several other world markets, capitalizing on the global need for enhanced public safety and homeland security initiatives, as well as providing support for alternatives to incarceration, re-entry and re-socialization initiatives."

Mr. Hastings continued, noting that, "Given the unique portability of our integrated monitoring center and one-piece GPS/RF/Cellular tracking technologies combined with euromicron's long-term market presence, communications infrastructure experience and in-market knowledge, euromicron is the ideal partner to help us drive growth and implementation of our solutions throughout much of Europe. We believe that together, the two companies are competitively well-positioned for strategic expansion and mutual financial growth."

"Our sustained efforts and investments to globalize our product and service offerings will be further realized and accelerated by this agreement with euromicron AG and will likely serve as a foundation for substantive future growth of both companies," said Mr. Hastings.

euromicron AG engages in the leading edge development, implementation, and maintenance of data networks based on fiber optics. It operates through two segments: Network and Fiber Optics Technology, and Industrial Holdings. The Network and Fiber Optics Technology segment engages in the systems business; develops, installs, and maintains data networks based on fiber optics; produces optical components and tools; assembles fiber optic cables; and trades and consults in network components and network materials. The Industrial Holdings division develops, produces, implements, and maintains components, generating sets, and energy management systems; and designs and manufactures technical laboratory furniture. The Company, which is publicly traded, provides their services to leading companies such as deutche telecom.

RemoteMDx, Inc. owns, develops and markets leading edge, patented monitoring and advanced communications technology widely utilized in over 625 law enforcement agencies, judicial districts and county jurisdictions across 35 states, with applications targeted for offender tracking and homeland security. Through a subsidiary, SecureAlert, Inc., the company observes and tracks offenders no matter where they may be -- in their car, home or office. SecureAlert can intervene in real-time with direct voice communication when an offender is in violation of probation or parole, such as sex offenders who are prohibited from entering school areas, parks, etc. Highly trained case managers monitor the offender's activities 24/7 through satellite mapping and computer systems. The SecureAlert programs allow convicted criminals to re-enter society by keeping them accountable 24 hours a day, every day, while reducing the burdens and costs carried by the criminal justice system. To learn more about RemoteMDx, visit [ www.remotemdx.com ].

Safe Harbor Statement

This press release contains forward-looking statements within the meaning of Section 27A of the Securities Act and Section 21E of the Securities Exchange Act, including future growth and earnings opportunities of the company. Examples of forward-looking statements in this release include references to the results of operations during future periods, future phases of the company's business plan, and the launch of products and services into a new geography. Actual results could differ materially from those projected in these forward-looking statements, which involve a number of risks and uncertainties, including the Company's ability to retain and to promptly satisfy current backorders and other economic, competitive, governmental, technological, regulatory, manufacturing and marketing risks associated with the Company's business and financial plans. The contents of this release should be considered in conjunction with the risk factors, warnings, and cautionary statements that are contained in the Company's most recent filings with the Securities and Exchange Commission.