Cell-Loc/IQ2 Communications JV to offer location-based services
CALGARY AB, OCTOBER 8, 2001 - Cell-Loc Inc. (TSE: CLQ), a leading developer of network-based wireless location technology, today announced the signing of a license and a joint venture agreement with IQ2 Communications Corp., a wholly owned subsidiary of IQ2 Power Corp.
The transaction provides Cell-Loc with an up front payment of $1.5 million (Cdn) and an additional $5.3 million in embedded options. The agreement grants IQ2 Communications a license with sole rights to Cell-Loc’s intellectual property for the Calgary location-based network and additional deployment rights in other geographic regions. Each party holds a 50 percent working interest in the joint venture. Cell-Loc’s Times Three brand name will be provided to the joint venture as part of the contribution from Cell-Loc. As well, for due consideration, Dr. Michel Fattouche, president & CEO, Cell-Loc Inc., will receive a 3.3 percent carried interest in the joint venture.
“The IQ2 Communications partnership fulfills Cell-Loc’s goal to expedite the deployment of networks in other geographic regions with a party that offers existing markets and complementary businesses,” said Dr. Michel Fattouche, president & CEO, Cell-Loc Inc.
“IQ2 Communications Corp. is extremely pleased to complete this agreement which represents an expansion of the relationship previously announced with Cell-Loc,” said Tom Dechert, president, IQ2 Communications Corp. “The expanded scope gives IQ2 all rights to the technology in the Calgary region, representing a key strategic asset that expands our existing business platform for providing marketing and technology services. IQ2 Communications believes that location technology will become another value-added service that integrates well with our existing expertise. We are excited to see the advancements in the technology and look forward to developing the markets and applications.”
This agreement sees IQ2 Communications assuming all rights related to the Asset Trax arrangement announced by Cell-Loc on June 29, 2001.
About Cell-Loc Inc. About IQ2 Communications Corp. Forward Looking Statements: This news release contains certain forward-looking statements. All statements, other than statements of historical fact, included herein, are forward-looking statements that involve various risks and uncertainties. There can be no assurance that such statements will prove to be accurate and actual results and future events could differ materially from those anticipated in such statements. Forward-looking statements are based on the estimates and opinions of management on the date the statements are made, and Cell-Loc does not undertake an obligation to update forward-looking statements should conditions or management's estimates or opinions change.
Note to Editors: Cell-Loc is a trademark of Cell-Loc Inc.
The Toronto Stock Exchange has neither approved nor disapproved the information contained herein.
Cell-Loc media contact:
Tammy Yamkowy Please direct all IQ2 Communications inquiries to:
Tom Dechert
Cell-Loc Inc. (www.cell-loc.com), a leader in the emerging wireless location industry, is the developer of CellocateTM, a family of wireless location products that enable location-based services. Located in Calgary, Alberta, Cell-Loc currently develops, markets and supports its patented wireless location technology in North and South American countries with a view to expanding globally. Cell-Loc is listed on the Toronto Stock Exchange under the trading symbol: "CLQ."
IQ2 Communications Corp has extensive experience in the area of billing and administration services, software development, marketing management and is a wholly-owned subsidiary of IQ2 POWER Corp (www.iq2power.com), a registered independent power retailer in the newly deregulated Alberta power market, focused on providing the commercial and industrial clients with tailored power solution packages. IQ2 Power Corp. is a subsidiary of a major international energy corporation.
Manager, Public Relations
Phone: (403) 569-5748
Toll Free: 1-877-569-5700
tyamkowy@cell-loc.com
President
PPhone: (403) 206-2826
tdechert@iq2power.com