Under the terms of the agreement, SSTY will form a separate corporate entity which will trade as a publicly listed pink sheet company (publicly traded NASDAQ vehicle) and be named Globe Staff. SSTY shall issue a perpetual license to this new corporation for the sale, distribution and marketing of GSCs various technologies. SSTY shall retain a percentage stake in the new Globe Staff along with the previous principals of GSC. In addition, the new Globe Staff will pay SSTY a royalty fee of ten percent (10%) of its gross income. Details of the share structure will be released along with the details of the Sure Trace Asia share structure later this week.
Incorporated in 1991, GSC developed a successful and profitable business providing consulting services for computer network security and support. In 2002, GSC began work on the development of the world's first GSM/GPRS (cellular) based tracking device. The GSC revenue model resembles the cellular phone model, "lets give away the phone at cost but charge monthly fees for network access and support for a predetermined number of years."
GSC completed this development effort during the summer of 2004 with the introduction of its beta version of its technology in the Tour De France, the worlds largest and most well known bicycle race.
GSC developed several business relationships to accommodate the needs of the Tour de France event, which have grown into significant business partnerships and distribution opportunities. These include Group Orange, the worlds second largest cellular phone company which will deliver the cellular infrastructure and billing system.
GSC has also received significant interest from the various European Government bodies and as a result of the Tour de France exposure. Details of agreements and partnerships will be released in the coming weeks.
The GSC GSM/GPRS (cellular) based tracking device(s) is able to predetermine an approved destination or travel route. Should the tracking device move outside of the predetermined location or travel route, an alarm within a call centre or targets message recipient will be sounded and in the case of a motorized vehicle, the engine can be disabled. This functionality is a big step forward in GPS technology.
Jean Gilles Subervie, President and Cameron Moriarty, CEO of Globe Staff stated: "We are pleased to see a positive conclusion to the negotiations. This alliance of products and services offers our private sector and government, security force clients a complete array of services to enhance and bolster their programs, in a volatile world."
Jim Mackay CEO of Sure Trace stated, "I am very happy that this transaction has been accomplished. Globe Staff provides SSTY with a significant tool(s) needed to fight diversion, which in addition to outright counterfeiting, is a significant issue facing major brands not to mention personnel security issues in high risk countries/occupations with political/military instability. Over the past several months we have worked hard to develop exposure for Globe Staff and feel strongly that in very short order some major deals will close to the benefit of SSTY."
On Wednesday December 22 in the 10QSB Filing it was stated that SSTY and GSC agreed that the previous acquisition agreement will be cancelled in its entirety and that a new contract with revised terms would be negotiated.
About Sure Trace Security Corporation
Sure Trace is on track to be the premier system integrator for anti-counterfeiting and security surveillance applications and a world-class provider of integrated tracking devices world wide within 2005. This will be accomplished by delivering turnkey solutions onshore and offshore for governments, armed forces and industry. Sure Trace is now reviewing additional key alliance and acquisition opportunities to help it fast track growth and profitability. For more information go to: www.suretrace.com.
Safe Harbor: This press release contains forward-looking information within the meaning of section 27A of the Securities Act of 1933 and section 21E of the Securities Exchange Act of 1934 and is subject to the Safe Harbor created by those sections. This material contains statements about expected future events and/or financial results that are forward-looking in nature and subject to risks and uncertainties. Such forward-looking statements by definition involve risks, uncertainties and other factors, which may cause the actual results, performance or achievements of Sure Trace to be materially different from the statements made herein.