SerVision plc Update on existing China distribution agreement (5950B)

TIDMSEV

RNS Number : 5950B

SerVision plc

08 January 2015

8 January 2015

SerVision PLC

("SerVision" or the "Company")

Receipt of balance of funds for initial purchase order on distribution agreement with Beijing SIVI Technology Co., Ltd ("BST")

BST granted the China Compulsory Product Certification

SerVision (AIM:SEV), the AIM quoted developer and manufacturer of digital security systems, is pleased to announce an update on the Company's existing distribution agreement with Beijing SIVI Technology Co., Ltd ("BST") further to the announcements released by the Company on 16 July 2014 and 6 November 2014. In June 2014 BST was appointed as exclusive distributor of SerVision's video gateway products in China until June 2016.

On 16 July 2014 SerVision announced that the Company had received an initial purchase order from BST with an aggregate value of US$500,000 of which US$271,825 in cash had been paid to SerVision with the remaining balance of US$228,175 of the initial purchase order to be paid 3 days after BST grants the China Compulsory Product Certification ("CCPC") but no later than 31 October 2014. Under the terms of the distribution agreement, BST also committed to an order schedule comprising a further five purchase orders with an aggregate value of US$2.0 million, based on certain terms and conditions being met by SerVision and BST as stipulated in the distribution agreement.

Further to the update announcement released on 6 November 2014 the Company can confirm that BST has now been granted the CCPC and that SerVision has now received the balance of US$228,175 in relation to the initial purchase order.

The CCPC certification will enable BST to begin supplying orders from a number of customers in China including the Chongqing municipality.

The Company and BST have also agreed to a revised order schedule for the subsequent purchase orders such that an additional four purchase orders with an aggregate value of $1,550,000 are expected to be be submitted by BST prior to 31 December 2015 and a further purchase order with an aggregate value of $450,000 is expected to be submitted by BST prior to 31 March 2016.

Gidon Tahan, Chairman and CEO of SerVision, commented: "We are pleased to have received the approvals in relation to the CCPC, received the balance of the cash from BST in relation to the initial purchase order and to have agreed a revised order schedule with BST for subsequent purchase orders. We are confident that the agreement with BST in the Chinese marketplace will contribute positively to the year ahead and we look forward to our mobile video streaming solutions being deployed in buses, trucks, police patrol cars, public safety vehicles, remotely located critical infrastructure sites and others across China."

-ends-

For further information please visit: http://www.servision.net/ or contact:

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

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The company news service from the London Stock Exchange

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