Exhibit 99.1 |
NEWS RELEASE
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846 N. Mart-Way Court, Olathe, Kansas 66061 Phone: 913-647-0158 Fax: 913-647-0132
investorrelations@elecsyscorp.com
FOR IMMEDIATE RELEASE:
Contact: Todd A. Daniels
(913) 647-0158, Phone
(913) 647-0132, Fax
investorrelations@elecsyscorp.com
ELECSYS CORPORATION COMPLETES ACQUISITION OF RADIX ASSETS
Olathe, Kansas (September 21, 2007) - Elecsys Corporation (AMEX: ASY) announced
today that it has completed its acquisition of the assets and the assumption of
certain liabilities of Radix International Corporation and Radix Corporation of
Salt Lake City, Utah. The transaction closed on September 17, 2007.
The Company acquired approximately $2.5 million in tangible assets, including
accounts receivable, inventory, and fixed assets, as well as all of the
intellectual property and intangible assets owned by Radix International
Corporation and its subsidiary. In the transaction, the cost to the Company was
approximately $2.2 million and the Company assumed approximately $1.4 million in
liabilities. The transaction also includes performance related compensation
based on the annual revenues of the acquired business over the next five years.
The total performance related compensation is limited to approximately $1.75
million and is subject to certain considerations that may impact the total
amount to be paid.
Mr. James H. Benson, who had previously served as Executive Vice President for
Engineering and had held various leadership positions at Radix International
Corporation for the past 32 years, has been named President of a subsidiary
created by Elecsys for this business. Mr. Benson will be based in Salt Lake
City, Utah and will oversee the sales, marketing, and product development
efforts of the company along with the product integration and service functions
that will be transferred to the Company's Olathe, Kansas facility.
Elecsys Corporation is a publicly traded holding company with three wholly owned
subsidiaries, DCI, Inc., NTG, Inc., and the newly created subsidiary. DCI
provides electronic design and manufacturing services for original equipment
manufacturers in the aerospace, transportation, communications, safety, security
and other industrial product industries. DCI uses its specialized expertise and
capabilities to integrate custom electronic assemblies with a variety of
innovative display and interface technologies. NTG designs, markets, and
provides remote monitoring solutions for the gas and oil pipeline industry as
well as other industries requiring remote monitoring solutions. Radix, the newly
created subsidiary, is a leader in the development, design and marketing of
ultra-rugged handheld computers, peripherals and portable printers. The markets
served by its products include utilities, transportation logistics, traffic and
parking enforcement, route accounting/deliveries, and inspection and
maintenance. For more information, visit our website at www.elecsyscorp.com.
Safe-Harbor statement: The discussions set forth in this press release may
contain forward-looking comments based on current expectations that involve a
number of risks and uncertainties. Actual results could differ materially from
those projected or suggested in the forward-looking comments. The difference
could be caused by a number of factors, including, but not limited to the
factors and conditions that are described in Elecsys Corporation's SEC filings,
including the Form 10-KSB for the year ended April 30, 2007. The reader is
cautioned that Elecsys Corporation does not have a policy of updating or
revising forward-looking statements and thus he or she should not assume that
silence by management of Elecsys Corporation over time means that actual events
are bearing out as estimated in such forward-looking statements.
