Exhibit 99.1
NEWS BULLETIN
FROM:
CalAmp Logo
FOR IMMEDIATE RELEASE
CalAmp Announces Acquisition of AirIQ's Vehicle Finance Division
Acquisition Provides CalAmp with Leading Position in Asset Tracking
Products and Services for Vehicle Finance Market
OXNARD, CA, March 16, 2007 - CalAmp Corp. (Nasdaq: CAMP), a leading provider
of wireless communication solutions, announced today that it has agreed to
acquire the Vehicle Finance division of AirIQ Inc. (TSX:IQ), a leader in
global wireless security, for cash consideration of $19 million. The
transaction is expected to close today. The Vehicle Finance division, which
generated 2006 revenues of approximately $15 million and currently operates
under the Aircept brand, sells Global Positioning Satellite (GPS) and
cellular-based wireless asset tracking products and services to vehicle
lenders that specialize in automobile financing for high credit risk
individuals. The acquisition is expected to be accretive to CalAmp after
excluding amortization of intangible assets arising from the acquisition.
AirIQ's Vehicle Finance solution includes an integrated unit comprised of a
wireless cellular transceiver, GPS receiver and computer processor that is
installed in the vehicle. In addition, AirIQ's proprietary back-office
software, which CalAmp will use under a license agreement, manages the flow
of information and allows lenders to access real-time information about the
vehicle. If the vehicle is stolen or if payment is in default, lenders can
remotely disable the vehicle and quickly and easily pinpoint its location.
"The acquisition of AirIQ's Vehicle Finance division significantly expands
CalAmp's existing mobile resource management (MRM) business with a complete
end-to-end solution and leading position in this burgeoning market," said
Fred Sturm, President and Chief Executive Officer of CalAmp. "We believe
there is growing demand for this service by vehicle lenders seeking ways to
mitigate payment default risk and preserve the value of their collateral.
Moreover, as the equipment manufacturer and service provider, CalAmp will
benefit through both hardware sales and recurring service revenue from an
installed customer base of approximately 150,000 vehicles."
Mr. Sturm concluded, "We plan to leverage this business by offering end-to-
end products and services to our existing public safety and industrial
monitoring and control markets. We also expect to realize approximately $1
million in annual savings by using system hardware developed by CalAmp. This
acquisition represents another important step in our strategy to expand
CalAmp's wireless datacom business to complement our leadership position in
the satellite television market."
During calendar 2006, AirIQ's Vehicle Finance division generated
approximately $10 million of hardware sales and approximately $5 million of
recurring data service revenue. On a blended basis, the 2006 gross margin of
the Vehicle Finance business was approximately 35%. CalAmp expects to employ
approximately 35 former AirIQ employees, and will operate the Vehicle Finance
business from the existing facility in Lake Forest, California.
About CalAmp Corp.
CalAmp is a leading provider of wireless communications products that enable
anytime/anywhere access to critical information, data and entertainment
content. With comprehensive capabilities ranging from product design and
development through volume production, CalAmp delivers cost-effective high
quality solutions to a broad array of customers and end markets. CalAmp is
the leading supplier of Direct Broadcast Satellite (DBS) outdoor customer
premise equipment to the U.S. satellite television market. The Company also
provides wireless data communication solutions for the telemetry and asset
tracking markets, private wireless networks, public safety communications and
critical infrastructure and process control applications. For additional
information, please visit the Company's website at www.calamp.com.
About AirIQ
AirIQ trades on the Toronto Stock Exchange under the symbol IQ. A leader in
Global Wireless Security, AirIQ is headquartered in Pickering, near Toronto,
Canada, with an office in San Diego, California, U.S.A. The Company operates
as a wireless Internet applications service provider specializing in
location-based services. AirIQ's services are offered to three primary
markets: Commercial Fleets; Consumer; and Marine Fleets. AirIQ gives vehicle
and vessel owners the abilities to manage and protect their mobile
assets. AirIQ's services include: vehicle locating, boundary notification,
automated inventory, maintenance reminders, security alerts, vehicle
disabling, unauthorized movement alerts and many more features. For
additional information on AirIQ or its products and services, please visit
the Company's website at www.airiq.com.
Forward-Looking Statement
Statements in this press release that are not historical in nature are
forward-looking statements, which involve known and unknown risks and
uncertainties. Words such as "may", "will", "expect", "intend", "plan",
"believe", "seek", "could", "estimate", "judgment", "targeting", "should",
and variations of these words and similar expressions, are intended to
identify forward-looking statements. Actual results could differ materially
from those implied by such forward-looking statements due to a variety of
factors, including general and industry economic conditions, competition, the
timing of customer approvals of new product designs, operating costs, the
Company's ability to efficiently and cost-effectively integrate its acquired
businesses, and other risks and uncertainties that are detailed from time to
time in the Company's filings with the Securities and Exchange Commission.
Although the Company believes the expectations reflected in such forward-
looking statements are based upon reasonable assumptions, it can give no
assurance that its expectations will be attained. The Company undertakes no
obligation to update or revise any forward-looking statements, whether as a
result of new information, future events or otherwise.
AT THE COMPANY: AT FINANCIAL RELATIONS BOARD:
Rick Vitelle Lasse Glassen
Chief Financial Officer General Information
(805)987-9000 (310)854-8313
lglassen@financialrelationsboard.com