SerVision plc New Partnership Agreement in Brazil (4437J)

TIDMSEV

RNS Number : 4437J

SerVision plc

07 April 2015

7 April 2015

SerVision plc

("SerVision" or the "Company")

New Partnership Agreement in Brazil

SerVision (AIM: SEV), the AIM quoted developer and manufacturer of digital video security systems, is pleased to announce that SerVision Limited, the Company's wholly owned subsidiary, has entered into a new partnership agreement with Sectrans Industry Trading Pty Ltd ("Sectrans") for the supply of SerVision's video gateway products across a range of vehicles in Brazil (the "Agreement"). Sectrans is a leading provider of surveillance technologies for fleet applications in Brazil and has been appointed as the exclusive distributor of SerVision's mobile video gateway products in Brazil.

The target customers for the deployment of SerVision's technology will be high-end buses, police cars, public safety vehicles (including ambulances and fire trucks), vans and tracks carrying high-value assets (e.g. tobacco, cash and alcohol), fuel haulers, municipal vehicles and security & foot patrol officers (for SerVision's wearable CCTV solution).

Under the terms of the Agreement, Sectrans will have exclusivity over the distribution of the Company's video gateway products in Brazil until December 2016. The Agreement is for the supply to Sectrans of MVG200 units and MVG400 units. The Company will also be supplying the SVControlCenter, SerVision's enterprise-level video monitoring software platform, as well as the SVProxy server solution, a proprietary server designed to overcome a range of cellular network related challenges.

Salineira, a large Rio de Janeiro-based bus operator and end customer of Sectrans, has committed to an initial purchase order for the supply of 400 MVG400 units with an aggregate value of US$500,000 for which US$250,000 in cash has been paid to SerVision with the balance of the initial purchase order expected to be paid to SerVision when the units are delivered to Sectrans shortly.

Under the terms of the Agreement Sectrans has undertaken to use their best efforts to sell a total of 2,000 units before 31 December 2015 and a further 4,000 units before 31 December 2016.

Under the terms of the Agreement, Sectrans has also undertaken to use best endeavours to charge their end-customers a monthly maintenance fee for each MVG200 and MVG400 once sold. Sectrans has committed to pay SerVision a 15% sales commission on the net revenues generated from all monthly maintenance fees for projects requiring the MVG200 and a 20% sales commission on the net revenues generated from all monthly maintenance fees for projects requiring the MVG400.

Gidon Tahan, Chairman and CEO of SerVision, commented, "We are pleased to enter into this partnership agreement with Sectrans to supply SerVision's video gateway products in Brazil, a territory where SerVision already has market penetration through its existing customers in the local bus industry including Auto Viacao 1001 and Breda Rio. This Agreement is also reflective of our evolving business model where we seek to generate monthly maintenance fees once our technology is sold to the end-customers. We are confident that our relationship with Sectrans, a leading surveillance technology business in Brazil, will develop further over the coming years."

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SerVision plc                                     [phone] 
Gidon Tahan, Chairman and CEO 
Allenby Capital Limited (Nominated Adviser 
 and Broker)                                 [phone] 
Nick Athanas / James Reeve 
Leander (Financial PR) 
Christian Taylor-Wilkinson                   [phone] 
 

Notes to Editors

SerVision is a pioneer in the field of security communications technology and a leading developer and manufacturer of fully integrated video recording and transmission systems for homeland security and transportation applications. The Company's core technology is proprietary video compression which is optimised for streaming real-time video over any type of cellular or narrowband network.

This information is provided by RNS

The company news service from the London Stock Exchange

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