BURLINGTON, ON, Sept. 9 /CNW/ - IPICO Inc. (TSX-V:RFD) announces today the resumption of product orders and shipments under its joint venture in China with CATS LUHAI (Beijing) Investment Co., Ltd. (CATS LUHAI), a subsidiary of the China Academy of Transportation Sciences, an agency of the Chinese national Ministry of Transport.
In April, 2009 IPICO announced the signing of an agreement to form a joint venture with CATS LUHAI relating to the implementation of an advanced integrated RFID motor vehicle identification and registration, route identification and toll collection program throughout China. The implementation of IPICO's automated RFID tolling solution over China's rapidly expanding network of roadways and motor vehicles is expected to achieve significant cost and revenue efficiencies in that country. It is also hoped that the implementation of advanced vehicle identification and routing solutions will significantly reduce the high levels of traffic congestion and resulting pollution experienced in many densely populated areas of China.
Since the early formation of the joint venture its terms have undergone a number of significant iterations in response to the rigourous approach that CATS LUHAI and the government of China have brought to this transformational multi-year program. In addition to the province by province rollout of IPICO's solution expected over the next four to five years, commencing with the Jilin province this fall, the program as now envisaged also provides for the co-development and further technical advancement in China of the transportation technology, based on IPICO's "IP-X protocol". IPICO has the exclusive rights to sell these products throughout the rest of the world.
Gordon Westwater, President and CEO of IPICO, commented that "We are pleased to be at the point where IPICO will begin realizing on the investment made over the many long months spent laying the groundwork for the implementation of our technology as a long-term solution in China. In addition, this joint venture will assist IPICO in accelerating the commercialization of our solution in worldwide vehicle and transportation markets."
ABOUT IPICO Inc.
IPICO Inc. is an RFID solution supplier with operations in Canada, USA, South Africa, Europe, and Asia. IPICO produces smart labels, tags and readers based on the IP-X communication protocol. Its products are designed to conform to regulatory requirements in most major geographical regions, to excel at long read range, fast multi-read anti-collision and high thru-beam read-speeds of dynamic tag populations, and to allow for multi-reader rollout in close proximity. IPICO's products are used to optimize the management of products, equipment, people, animals and processes within the logistics and other value chains. For further information, go to www.ipico.com.
This news release contains certain forward-looking statements pertaining to IPICO's proposed private placement, including statements as to the anticipated time of closing. Any statements in this news release that are not statements of historical fact may be considered to be forward-looking statements. Written words such as "may", "will", "expect", "believe", "anticipate", "estimate", "intends", "goal", "objective", "seek", "attempt", or variations of these or similar words, identify forward-looking statements. These statements by their nature are estimates of future results only and involve substantial risks and uncertainties, including those detailed from time to time. Actual results could differ materially from those contained in the forward-looking statements and are based on current expectations that involve a number of risks and uncertainties, including, but not limited to, the inability to close the interim loan or the Offering as a result of the failure to settle and enter into definitive documentation or the failure to receive regulatory or other approvals on terms acceptable to IPICO and the subscribers. These and other risks may be detailed from time to time in IPICO's periodic reports filed on SEDAR (www.sedar.com).
THE TSX VENTURE EXCHANGE HAS NOT REVIEWED AND DOES NOT ACCEPT RESPONSIBILITY FOR THE ADEQUACY OR ACCURACY OF THIS RELEASE.
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For further information: Gordon Westwater, President & CEO, IPICO Inc., Tel: +1 905-631-6310, Email: [email protected]
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