SerVision plc New order and Kazakhstan agreement update (4362O)

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RNS Number : 4362O

SerVision plc

28 May 2015

28 May 2015

SerVision plc

("SerVision" or the "Company")

New order from Egged Israel Transport Cooperative Society-Israel's largest bus operator

Update on existing agreement in Kazakhstan

New order from Egged Israel Transport Cooperative Society Ltd

SerVision (AIM: SEV), the AIM quoted developer and manufacturer of digital video security systems, is pleased to today announce that Egged Israel Transport Cooperative Society Ltd ("Egged"), Israel's largest transportation operator, has recently placed a purchase order with SerVision valued at US$108,000 for the purchase of 75 MVG400 units. SerVision has received the cash for the order and the MVG units have already been successfully installed on Egged buses in Israel.

In a letter sent to SerVision Egged has informed SerVision of its intention to deploy, by 31 December 2016, SerVision's mobile DVR units across their entire fleet of 3,920 buses in Israel and 1,700 buses that are owned by associate companies of Egged based in the Netherlands and Poland. SerVision has started working towards signing further purchase orders with Egged however the letter provides no guarantee that any further purchase orders will be forthcoming from Egged or on the terms or timing for any further purchase orders.

Further announcements will be made as appropriate.

Update on existing agreement in Kazakhstan

The board of SerVision is also pleased to provide an update on the agreement announced on 13 January 2015 with Crosstone Trading Limited ("Crosstone") and A&A Traffic Technologies Limited ("A&A") in Kazakhstan for the supply of SerVision's video gateway products for buses in Astana, Kazakhstan (the "Agreements").

On 13 January 2015 SerVision announced that they had entered into new agreements with Crosstone and A&A, operating in partnership with and under the same umbrella as SMEU-Astana, to deliver SerVision's fully integrated mobile video systems. The Agreements are for the supply of 360 MVG400 units with the end-user of the units being bus operator Astana LRT LLP. The Company is also 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.

The Company is pleased to announce that the 360 MVG400 units and the cameras were shipped to Astana on 22 April 2015.

Under the terms of the Agreements, Crosstone and A&A committed to an initial purchase order with an aggregate value of US$415,000. US$207,500 in cash was paid to SerVision in January 2015. The balance of the Crosstone purchase order, valued at US$195,300, was received by SerVision on 6 May 2015. The board of SerVision anticipate receiving the balance of the A&A order, valued at US$12,500, 75 days from receipt of shipment.

The board of SerVision is currently in negotiations to secure a further purchase order with Crosstone, A&A and SMEU.

Gidon Tahan, Chairman and CEO of SerVision, commented: "We are pleased to be commencing our relationship with Egged, the largest transportation operator in Israel, and are delighted that they have placed both an initial purchase order for 75 units and stated their intention to gradually deploy our DVR solution across their entire fleet by the end of 2016. We are pleased to have also now shipped the initial purchase order on our recently announced Kazakhstan agreement."

Chen Amram, Egged's CTO, added: "The initial deployment of SerVision's MVG400 units enables us to remotely monitor what is happening in real time on buses that operate in particularly problematic areas in Israel. The DVRs send us real time alerts wherever a security incident occurs, so authorities are fully informed and able to respond accordingly. There is no question that this technology has created a safer environment for both drivers and passengers, and we look forward to rolling it out to the rest of Egged's fleet."

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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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