Press Release

SOURCE: Axium Technologies, Inc.

Friday, October 5, 2007

 

Axium Technologies announced agreement with Ladatel Co., Ltd. to license its Maximum and Network Video Recorder products

 

PASADENA, CA, October 5, 2007 -- Axium Technologies, Inc. www.axiumtech.net (PINKSHEETS: AXGI) is pleased to announce the completion of a licensing agreement with Nadatel Co., Ltd. for its Maximum Software and the software-based Network Video Recorder products.

Nadatel Co., Ltd. is one of the leading manufacturers of Digital Video Recorder and IP addressable cameras/servers in South Korea. Nadatel has been supplying its products to some of the largest electronic retailers in the world under OEM agreements.

The agreement calls for Axium to create versions of its Maximum Software and Network Video products that specifically operate with Nadatel's Digital Video Recorders and IP addressable servers/cameras. The agreement runs for two years with terms included for automatic renewal. The initial delivery of products is scheduled for the fourth quarter of 2007. When the integration work is completed, Axium will retain the industrial and intellectual property rights for the products. Under full production, this agreement is expected to deliver a minimum of $750,000 in annual revenue, while achieving gross margins in excess of 90%.

Mr. WonSoo Chung, CEO of Axium Technologies stated, "This agreement provides Axium with another world class distribution channel for our products and a stepping stone to greater revenue opportunities in the near future. Equally important, the previously disclosed contract for Axium to integrate its Maximum software into many of Samsung Techwin's DVRs and IP cameras is now complete and Samsung will begin to pay licensing fees to Axium commencing in the fourth quarter of 2007. With this project complete, it is the perfect time for us to sign our second licensing agreement with Nadatel. We expect to complete the software integration into Nadatel products in less than two months. In the future, we anticipate signing additional licensing agreements for our software with additional manufacturers every quarter. If all goes as expected, within two years Axium's software business will be the most lucrative division of Company."

 

ABOUT AXIUM TECHNOLOGIES INC.

Axium Technologies, Inc. is a leading provider in surveillance security systems software and hardware. The company maintains its corporate presence in Pasadena, CA and its Research and Development Facility in South Korea.

The Company's primary products include MAXIMUM Surveillance Software, which is the key solution providing interoperability for numerous digitalized security and surveillance products from diverse manufacturers. The Company's Digital Video Recorders (DVRs) and Network Video Products (NVPs) are targeted at the Security and Surveillance segment of the gaming industry. The Company's newest product "Tagger Trap " is a state of the art graffiti detection product, which detects and alarms local police of graffiti activity. The estimated cost of graffiti clean up in North America is projected at $1.0 billion annually. Millions of dollars have been budgeted in the past year by large metro police departments to detect and apprehend graffiti taggers.

During 2006, Axium Technologies redeployed much of their resources, both fiscal and headcount, to complete development of its current suite of products. In doing so, its 2006 revenues is expected to reach $1.04 million, with revenues for 2007 presently projected to be $8.8 million, with gross margins of approximately 57% of revenues. The Company is presently reviewing its guidance for 2007 and will issue any upward adjustment warranted by this review, as soon as possible.

FORWARD-LOOKING STATEMENT: This press release contains forward-looking statements, including expected industry patterns and other financial and business results that involve known and unknown risks, uncertainties and other factors that may cause our actual results, levels of activity, performance or achievements to differ materially from results expressed or implied by this press release. Such risk factors include, among others: the sustainability of recent growth rates in the Security and Surveillance industry; the positioning of Axium products in the market; ability to integrate acquired companies and technology; ability to retain key employees; ability to successfully combine product offerings and customer acceptance of combined products; general market conditions, fluctuations in currency exchange rates, changes to operating systems and product strategy by vendors of operating systems; and whether Axium Technologies can successfully develop new products and the degree to which these products gain market acceptance. Actual results may differ materially from those contained in the forward-looking statements in this press release.

 

SOURCE: Axium Technologies, Inc.

www.axiumtech.net

 

CONTACT INFORMATION

 

Corporate Inquiries

Won Soo Chung (wschung@axiumtech.net)

626-351-1200

 

Investor Relations

Brock Malky

724-742-4420