23 Sep 2004 - PowerLinx Secures Digital PowerLine Surveillance System Purchase Contract
PowerLinx Contract to Generate Minimum of $23M Sales Revenue Over Three Years
TIERRA VERDE, Fla., Sept. 23 /PRNewswire-FirstCall/ -- PowerLinx, Inc. (OTC Bulletin Board: PWLX - News), the leader in powerline communication products, has executed a purchase agreement with Universal General Corporation (UGC) to purchase PowerLinx's patented digital powerline surveillance systems. The contract calls for the purchase of 10,000 digital powerline surveillance base systems with the ability to purchase as needed add-on digital powerline cameras based on UGC's installation site needs.
The digital powerline base systems are offered in three grades of camera quality which include a PowerLinx produced camera and two other outsourced cameras. UGC will determine the camera grade required based on the specifications for the respective installation sites. Initially, UGC informed the Company the base systems will be deployed in various classified applications for several markets. The base system will include encoder servers, encryption capabilities and viewing software which utilize On2's VP6 codec that is currently licensed from PowerLinx's strategic partner, On2 Technologies, Inc. (Amex: ONT - News) The Company will begin shipping the systems in the 4th quarter according to a ramp-up delivery schedule for the first year specified in the purchase contract. Depending on the final mix of the digital powerline cameras ordered, the total value of the purchase contract may range from $23M to $47M over the next three years covered by the agreement.
The complete contract may be found in the 8-K filing dated September 23, 2004 which may be accessed via the Company Web site, http://www.power-linx.com, using the "SEC filings" link in the investor relations section.
About Universal General Corporation:
Universal General Corporation is a private domestic, US Company involved in a variety of projects involving new innovations and technologies.
About PowerLinx, Inc.:
PowerLinx, Inc., http://www.power-linx.com, develops, manufactures, and markets, among other devices, products, and applications developed to transmit voice, video, audio and data either individually or any and all combinations over power lines, twisted pair wires and coax in AC and DC power environments, on any and all power grids. The Company has also developed, manufactured, and marketed different kinds of underwater video cameras, lights and accessories for the marine, commercial and consumer retail markets.