| Wed 19 Sep 2001, 0:00 | | Altech's Netstar - Expands Into Malaysia |
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ALLIED TECHNOLOGIES LIMITED
Share code: ALT
ISIN Code : ZAE000015251
Netstar, currently South Africa's and Africa's market leader in vehicle
tracking and recovery systems, has signed a multi-million Rand License
Agreement to expand its operation to Malaysia.
Netstar, a wholly-owned subsidiary of the R 4 billion JSE Securities
Exchange-listed Altech group of companies, has already successfully expanded
its franchise operations in Southern Africa to Mozambique, Zambia, Botswana,
Namibia and Swaziland during the past two years.
Chief Executive Officer of Altech, Craig Venter, says that in line with
Altech's globalisation strategy, opportunities to market the truly
innovative South African designed and manufactured Netstar systems globally
have been a priority. "Much evaluation took place and Malaysia, a country
similar to South Africa in many respects, proved to be an ideal location for
a new venture. After negotiations with Proton, the largest Malaysian vehicle
manufacturer, a License Agreement for a Netstar operation in Malaysia has
been signed whereby Proton will be a senior partner. Importantly, Altech's
Intellectual Property Rights have been protected under the agreement and our
group will remain the sole owner of this investment. This will enable
Altech/Netstar to further expand its globalisation strategy," said Venter.
Venter said the signing of the agreement with Proton was a coup for Netstar
as Proton was the largest manufacturer and distributor of vehicles in
Malaysia with annual sales of around 200 000 units. "This unique alliance
will see the installation of Netstar systems into vehicles on Proton's
assembly lines," he said. "This will enable Netstar to obtain significant
critical mass and reach substantial economies of scale."
In terms of the agreement, Netstar has already successfully geared itself to
develop and manufacture a complete Netstar infrastructure, mirroring the
South African operation, for export and installation in Malaysia within the
next four months. This includes the erection of base stations and beacons,
the establishment of helicopter and ground response crews and the opening of
fitment centers. At this point in time the Netstar units will be
manufactured in South Africa.
"The total value of foreign exchange generated for South Africa is
significant with at least R15-million accruing in the first two months of
the start-up-phase alone," said Venter, "while an ongoing revenue stream is
assured through royalty payments and component sales. Netstar is already a
significant contributor to Altech's earnings and I'm confident that this
deal will greatly enhance its value to the group."
Venter said high volumes of sales of the various Netstar systems had been
projected for Malaysia because of that country's total vehicle "population,"
the increasing rate of crime involving the theft of vehicles and because of
the involvement of Proton as a senior partner. " I'm confident that a
successful operation in Malaysia will lead to even more global opportunities
for the company," said Venter. "Netstar has the management and all other
expertise to ensure the success of the venture."
Netstar's sophisticated systems, combined with the largest private stolen
vehicle air and ground response service, have resulted in the highest number
of stolen vehicle recoveries in Southern Africa. A total of more than ten
thousand stolen vehicles have already been successfully recovered by the
company which has also recently developed a number of products for Fleet
Management applications and for the protection of assets in transit.
Netstar's current subscriber base in South Africa is over 120 thousand
vehicles valued at more than R12 billion.
19 September 2001
For additional information please contact:
Mr Craig Venter : CEO Altech
Phone (011) 715-9004
Or,
Mr John Edmeston : MD of Netstar
Phone (011) 207-5037
Or,
Ken Slade: Altech Media and Investor Relations
Phone 082-895-1310.
