Message #36 From:
Stock News Bot Date: September 7, 2006 08:07:00 AM
SDGL News Secured Digital to Take 75 Percent Stake in Asian Kioskmedia Venture
SADDLE BROOK, N.J.--(BUSINESS WIRE)--Sept. 7, 2006--Secured Digital Applications, Inc. (OTCBB:SDGL) today announced that it had executed an agreement to acquire a majority stake in a joint venture agreement with Kioskmedia, Sdn Bhd, a leading provider of free-standing, interactive displays and kiosks in Southeast Asia.
Secured Digital, a global media production company, will hold 75 percent of a new joint venture company to which Kioskmedia will contribute its assets and existing contracts. Kioskmedia has developed and installed interactive kiosks and free-standing interactive displays in six countries in Southeast Asia and Europe.
Secured Digital and Kioskmedia will jointly develop and market a new line of interactive display products in Asia that utilize through-glass technology and free-standing digital signage. The joint venture will also provide a network of free-standing payment kiosks, which are popular in Asia.
"This is an important strategic acquisition for us," said Patrick Lim, Chairman and CEO of Secured Digital. "First, Kioskmedia is a vibrant, growing business operated by talented entrepreneurs in an industry that is young and has very significant potential, particularly in Asia. We believe that this is a business that will grow substantially and become a leading player in this industry."
"At the same time, our joint venture with Kioskmedia will produce products that are rich in multi-media content, which is our core business. Through this joint venture, we are able to offer a complete product that includes both the installation and vibrant multi-media content."
Through-glass technology uses projectors and infra-red sensors to project interactive multi-media displays on glass, such as storefronts and free-standing displays. The first such installation is scheduled for this fall in one of Kuala Lumpur's major retail centers.
Lim said that the company is also optimistic that the joint venture will find a significant market for free-standing payment kiosks. Payment kiosks are popular in Asia due to the relatively lower use of credit cards by Asian consumers.
Kioskmedia's interactive kiosks have been placed in government and institutional locations, including libraries, museums and airports.
Secured Digital will inject $450,000 for its 75% stake in the joint venture company. The venture is projected to generate $600,000 income during its first year of operations.
Secured Digital has acquired and integrated technology-based business since 1999 and is a leading provider of multi-media, technology and security solutions in Malaysia. Its acquisitions include Innospective Sdn Bhd, a developer of wireless information technology and machine-to-machine applications.
About Secured Digital Applications:
Secured Digital Applications, Inc. is a global media production company providing content for television, the Internet and free-standing digital displays, and also designs and installs on-site multi-media presentations. SDA also develops and implements solutions for biometric security systems and business process applications, and sells consumer media products through a chain of stores in Malaysia.
Safe Harbor Statement:
Information contained in this release includes forward-looking statements and information that is based on beliefs of, and information currently available to, management, as well as estimates and assumptions made by management. Forward-looking statements can be identified by the use of forward-looking terminology such as "believes", "expects", "is expected", "intends", "may", "will", "should", "anticipates", "plans" or the negative thereof. These forward looking statements often include forecasts and projections for future revenue and/or profits and are subject to revision and are not based on audited results. Forward-looking statements involve known and unknown risks, uncertainties and other factors that could cause actual results to vary materially from historical results or from any future results expressed or implied in such forward-looking statements. Secured Digital Applications, Inc. does not undertake to update, revise or correct any forward-looking statements. Investors are cautioned that current results are not necessarily indicative of future results, and actual results may differ from projected amounts. For more complete information concerning factors that could affect the Company's results, reference is made to the Company's registration statements, reports and other documents filed with the Securities and Exchange Commission. Investors should carefully consider the preceding information before making an investment in the common stock of the Company.
