RemoteMDx and euromicron AG Announce Distribution and Licensing Agreement and a $2.5 Million Private Placement

Mon Jul 13, 2009 9:40am EDT
 
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  SANDY, UT, Jul 13 (MARKET WIRE) -- 
RemoteMDx, Inc. (OTCBB: RMDX) and euromicron AG announced a six year
agreement with an additional four years of optional renewal periods (10
years total), granting euromicron an exclusive License to manufacture,
market and distribute the TrackerPAL portfolio of monitoring products and
services and to provide related service offerings in eighteen (18)
European Countries. The TrackerPAL device, offered by the company's
SecureAlert subsidiary, provides an integrated GPS and Electronic
Monitoring Solution in support of realtime offender tracking, monitoring
and intervention. The company currently manages various offender services
for a population of over 14,500 offenders utilized throughout the United
States by more than 650 judicial district, probation, parole and policing
agencies, requiring or benefitting from ongoing persistent and secured
electronic monitoring. Euromicron, a publicly traded German company with
2008 revenues of over 164 million Euros is a leading network and
infrastructure technology company providing data networks to major
corporate entities throughout Europe. The terms of the agreement include
euromicron's establishment of a European Territory-based monitoring center
and completing certain other milestones within the first two years.

    The agreement provides for various revenue opportunities to RemoteMDx -
SecureAlert within this territory related to revenues from agreed to
margins on the sale of TrackerPAL devices, royalties from recurring
revenue streams related to electronic monitoring and from consulting fees
derived from contracted professional services for training and support
through the designated euromicron distribution territory.

    The licensing and distribution agreement provides for joint and
collaborative expansion into and throughout the exclusive territory of
Albania, Austria, Bosnia & Herzegovina, Bulgaria, Croatia, Czech Republic,
Germany, Greece, Hungary, Italy, Kosovo, Macedonia, Poland, Serbia,
Slovakia, Slovenia, Switzerland, and Turkey. Together, these countries
represent a combined potential to support upwards of 50,000 electronically
monitored offenders including inmates, parolees, probationers and
pre-trial defendants in local, federal and military jurisdictions.

    Separately, the parties also announced a $2.5 million investment in
RemoteMDx Stock by euromicron priced at the then current market share
price of $0.20 cents per share, acquiring 12,500,000 shares of the
company's common shares ("restricted") on May 28, 2009, previously
disclosed in a June 2, 2009 8K filing.

    According to euromicron's representative Dr. Edgar Bernardi (former
Executive Board Member, COO and Chief Sales & Marketing Officer),
"euromicron is well-positioned to leverage its core competencies in
communications, data and security networks to capitalize on the existing
and synergistic GPS tracking technologies of RemoteMDx and SecureAlert in
an extended effort to exploit the need to bring technologically advanced
offender tracking and monitoring solutions to the European marketplace."

    He continued, "We are jointly committed to a long-term sales, marketing
and financial relationship, which enjoins the two company's sales,
marketing, monitoring and TrackerPAL deployment initiatives across much
of Europe and throughout our licensed territory. The SecureAlert product
suite is an excellent add-on to the communications, data and security
fiber optics networks that we have been a leader in providing to major
telecom and other major business enterprises throughout this important
and growing part of the European community."

    According to John Hastings (President & COO of RemoteMDx and SecureAlert),
"This licensing and distribution agreement provides for several major
milestones for the Company. First, it further demonstrates that the market
demand for SecureAlert's portfolio of TrackerPAL products and offender
monitoring solutions is a global market opportunity. Secondly, we are very
gratified that a major European leader in the advanced data network space
has chosen to partner with and invest in our firm. Additionally, given the
large market potential within the 18 countries under this agreement,
RemoteMDx will benefit over the near term through the ongoing revenue
stream that this agreement will generate. This agreement should lead to
much increased visibility for the company in several other world markets,
capitalizing on the global need for enhanced public safety and homeland
security initiatives, as well as providing support for alternatives to
incarceration, re-entry and re-socialization initiatives."

    Mr. Hastings continued, noting that, "Given the unique portability of our
integrated monitoring center and one-piece GPS/RF/Cellular tracking
technologies combined with euromicron's long-term market presence,
communications infrastructure experience and in-market knowledge,
euromicron is the ideal partner to help us drive growth and implementation
of our solutions throughout much of Europe. We believe that together, the
two companies are competitively well-positioned for strategic expansion
and mutual financial growth."

    "Our sustained efforts and investments to globalize our product and
service offerings will be further realized and accelerated by this
agreement with euromicron AG and will likely serve as a foundation for
substantive future growth of both companies," said Mr. Hastings.

    euromicron AG engages in the leading edge development, implementation, and
maintenance of data networks based on fiber optics. It operates through
two segments: Network and Fiber Optics Technology, and Industrial
Holdings. The Network and Fiber Optics Technology segment engages in the
systems business; develops, installs, and maintains data networks based
on fiber optics; produces optical components and tools; assembles fiber
optic cables; and trades and consults in network components and network
materials. The Industrial Holdings division develops, produces,
implements, and maintains components, generating sets, and energy
management systems; and designs and manufactures technical laboratory
furniture. The Company, which is publicly traded, provides their services
to leading companies such as deutche telecom.

    RemoteMDx, Inc. owns, develops and markets leading edge, patented
monitoring and advanced communications technology widely utilized in over
625 law enforcement agencies, judicial districts and county jurisdictions
across 35 states, with applications targeted for offender tracking and
homeland security. Through a subsidiary, SecureAlert, Inc., the company
observes and tracks offenders no matter where they may be -- in their car,
home or office. SecureAlert can intervene in real-time with direct voice
communication when an offender is in violation of probation or parole,
such as sex offenders who are prohibited from entering school areas,
parks, etc. Highly trained case managers monitor the offender's
activities 24/7 through satellite mapping and computer systems. The
SecureAlert programs allow convicted criminals to re-enter society by
keeping them accountable 24 hours a day, every day, while reducing the
burdens and costs carried by the criminal justice system. To learn more
about RemoteMDx, visit www.remotemdx.com.

    Safe Harbor Statement

    This press release contains forward-looking statements within the meaning
of Section 27A of the Securities Act and Section 21E of the Securities
Exchange Act, including future growth and earnings opportunities of the
company. Examples of forward-looking statements in this release include
references to the results of operations during future periods, future
phases of the company's business plan, and the launch of products and
services into a new geography. Actual results could differ materially from
those projected in these forward-looking statements, which involve a
number of risks and uncertainties, including the Company's ability to
retain and to promptly satisfy current backorders and other economic,
competitive, governmental, technological, regulatory, manufacturing and
marketing risks associated with the Company's business and financial
plans. The contents of this release should be considered in conjunction
with the risk factors, warnings, and cautionary statements that are
contained in the Company's most recent filings with the Securities and
Exchange Commission.

    

RemoteMDx, Inc.
Investor / Media Relations
(866) 451-6141
ir@remotemdx.com

Copyright 2009, Market Wire, All rights reserved.

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