Login    
 
    News
    Events
   
 
Home > Showcase > News


January 3, 2007
Electronic Control Security, Inc. and Hyundai Syscomm Create Strategic Alliance - Hyundai to Invest in ECSI and Guarantee At Least $25 Million in Revenue

Clifton, NJ - January 3, 2007 - Electronic Control Security, Inc. (OTCBB: EKCS) a leading provider of a broad line of electronic security system technologies to the government and private sectors, and Hyundai Syscomm Corp., a California based world leader in wireless mobile communication equipment, jointly announced their strategic security systems offerings to secure critical Asian infrastructure sites.

The highlights of the alliance between Electronic Control Security Inc. and Hyundai Syscomm Corp., formalized in definitive agreements dated as of December 22, 2006 are summarized below:

Hyundai Invests $1.2 Million in ECSI
Hyundai agreed to make an initial investment of $1.2 million in ECSI. ECSI has issued 4.8 million shares of common stock of which 3,000,000 shares will be applied to the initial funding.

ECSI to Retire Secured Debt and Obtain a More Favorable Commercial Line Of Credit
ECSI will use the initial investment to repurchase its outstanding senior secured convertible debentures issued in January 2006. That will unencumber the assets securing the convertible debentures thereby permitting the company to obtain a working line of credit through commercial banking resources.

Hyundai Guarantees ECSI At Least $25,000,000 in New Revenue
Hyundai, or one of its affiliates, will issue sub-contracts to ECSI for its security technologies and services to protect critical infrastructure in Asia on terms beneficial to both parties. Hyundai will deliver to ECSI on or prior to June 30, 2008, guaranteed contracts having gross revenues of at least twenty five million dollars ($25,000,000). ECSI has agreed to perform its obligations in a timely and efficient manner.

Provides Option for 50% Incentive Based Equity Stake for Hyundai
The issuance to Hyundai over time of up to fifty percent (50%) of ECSI common stock with the timing and amount of the issuance of shares being tied to 30% of the gross profit generated from the sub-contracts that Hyundai issues to ECSI. Hyundai may at its election take its percent of gross profits in the form of cash or in the form of the company's common stock valued at fifty-eight cents ($.58) per share until the average cost of all shares acquired by Hyundai Syscomm from ECSI averages forty cents ($.40) per share.

"The strategic alliance between ECSI and Hyundai Syscomm guarantees us at least $25 million in new revenue over the next eighteen months and Hyundai Syscomm's initial investment immediately strengthens our balance sheet from the retirement of the secured debt," said Arthur Barchenko, Chairman and CEO of ECSI. "It also gives us the strength, resources and marketing reach of a top tier international corporate partner that we need to rapidly expand our target market diversification and sales. Hyundai's expertise in advanced CDMA wireless networks and security systems combined with our proven solutions for protecting vulnerable utilities, nuclear power stations, water resources, pipeline, border, airport, ports and cargo inspection facilities creates a unique, fully integrated, wireless security technology to rapidly expand market share in the world's fastest growing markets."

Mr. Samuel Lee, Chairman of the Board, Hyundai Syscomm stated, "We are very excited about this opportunity since Hyundai Syscomm and its affiliates design, manufacture, supply, market, install and maintain wireless networks and security systems throughout the world. ECSI and its affiliates have the knowledge and capability to integrate with Hyundai Syscomm's products by retrofitting their technology with wireless video security systems into established wireless networks. Hyundai Syscomm, in connection with ECSI's technology, is positioned to meet the needs of the multi-billion dollar rapidly changing 21st century communications and security markets. With the companies' combined technological strength its' leadership expects to capture a large percentage of this ever-expanding market and should place the strategic relationship it at the forefront of the world communication industry. Hyundai Syscomm can efficiently collaborate with ECSI in target market segments."

About Hyundai Syscomm
Hyundai Syscomm is a leader in next generation mobile communication system development. The company is a CDMA infrastructure manufacturer with an installed base of over 3 million CDMA subscribers and over 2,200 base stations globally. The developer of the world's first commercial CDMA system, Hyundai Syscomm installed its first network in 1995 and its products support all major CDMA spectrums globally with a wide range of solutions. Driven by experience in Korea, the company is focusing its current efforts on seizing new market opportunities in China, Southeast Asia and the United States. Hyundai Syscomm has already supplied a WLL system in India. Hyundai Syscomm and its affiliates have installed CDMA infrastructures for Sprint PCS and Verizon Wireless. The Company has since continued to focus on CDMA and in addition diversified into markets complementary to its core assets. (650)212-7500, Fax(650)212-7035.



Hyundai Syscomm ECSI Target Market


 


 
 
  ©2005 ECSI International, Inc. All Rights Reserved.
790 Bloomfield Avenue, Building C-1, Clifton, NJ 07012
(973) 574-8555 | info@anti-terrorism.com