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| "The inability
to communicate was a critical element at the World Trade Center, Pentagon,
and Somerset County, Pennsylvania crash sites, where multiple agencies
and multiple jurisdictions responded. The occurrence of this problem at
three very different sites is strong evidence that compatible and adequate
communications among public safety organizations at the local, state, and
federal levels remains an important problem."
911 Commission Final Report |
 |
Aegis Assessments
(OTC BB: AGSI) Delivers Unit To SPAWAR- Production of First Units Ahead
of Schedule |
|
Aegis Assessments hasn't been
delivering much to talk about since I first published on the company in
the June
5th edition. Today, this changed as the company announced it is beginning
to deliver its first units. If you need a quick refresher, now would be
a good time to click on the link and review the original presentation.
You are looking at an elegant solution
to a very challenging communications problem. The quote from the recent
published conclusions of the 911 Commission above spells out just
how serious this problem is.
Aegis Assessments' radio bridge
is the most elegant, simple, and inexpensive solution to the problem on
the market today. The product is just a little bigger than a normal size
briefcase, is battery operated, and fits easily into the trunk or storage
compartment of any first responder vehicle (i.e. police, fire, paramedics,
etc.)
As emergency responders arrive at
a site, a hand held radio is simply plugged into the unit, and everyone
is talking to each other. It works. Problem solved.
On June
5th I introduced OTC Journal members to the company on the
day they landed their first major purchase order. The initial order was
for $2.4 million, which equates to 200 units. A distributor placed
the order for resale primarily to first responders in the NY City area.
Today, just after the market closed,
Aegis
Assessments announced the first units were coming out of production.
The company expects to deliver the first 100 units by the end of August,
which will officially mark the point in time at which the company evolves
from an R&D start up to a viable company with ramping up sales.
More importantly, Aegis also
announced today it has shipped its first unit off the line directly to
SPAWAR
(Space and Naval Warfare Systems Center).
SPAWAR has been assigned the
task of assisting the ODP (Office of Domestic Preparedness), in
evaluating technologies which solve the daunting problems facing The
Homeland Security Department.
Aegis anticipates that the
ODP,
with the assistance of SPAWAR, will include their Radio Bridge product
on a list of viable solutions for the communications interoperability challenge.
Once included, funding will be available through the $170 billion
Homeland Security budget.
Since first publishing on AGSI,
the stock has been stuck in a range between $3 and $4. It doesn't want
to trade much below $3, but it also doesn't seem ready to charge much above
$4.
Since this stock has not developed
much of a following yet, I wouldn't be surprised to see it move both up
and down prolifically on light volume. Today's news should help the stock
challenge the $4 level once again.
I'm hoping to see additional order
flow later in the summer as the company is in the midst of delivering on
its initial orders. In addition, eventual inclusion of the Radio Bridge
on the ODP list will bring funding for purchases by First Responders
nationwide. If you can look 6 to 18 months down the road to a time when
the Radio Bridge starts showing up in the hands of police and firefighters,
the stock could deliver TASR like performance.
I am expecting some traction on the
Mobile
Command Center and Wireless Safety Systems products in the near
future. We covered these in the original presentation.
One final note: The quote from manufacturer
3Netics states they have are setting up the capability to manufacture 6,000
Radio Bridge Units in 2005. This would equate to $72 million in sales
based on the current price. No guarantees, but certainly intriguing.
Here is the complete text of today's
press release for your review:
| Press Release Source:
Aegis Assessments Inc.
Aegis Assessments
Announces Delivery of Initial SafetyNet RadioBridge Units and Anticipates
Exceeding Delivery Forecasts
Thursday July 29, 4:15
pm ET
SCOTTSDALE, Ariz.--(BUSINESS
WIRE)--July 29, 2004--Aegis Assessments Inc. (OTCBB:AGSI - News) announced
today that it anticipates exceeding its production forecasts for RadioBridge
units through August 2004 and anticipates shipping a minimum of 100 RadioBridge
units to its New York-based distributor, JAD Corp. of America, by the end
of August 2004. The shipment is valued at $1.2 million. The RadioBridge
is being produced by the Redmond, Wash.-based 3Netics Corp. at a production
facility in Marysville, Calif.
"I am pleased to announce
that 3Netics' Marysville Production Facility delivered its first RadioBridge
this week," Bart Norton, president of 3Netics Corp., said. "We will deliver
15 RadioBridges to Aegis in July with 85 more to follow before the end
of August. To meet the anticipated high demand for this innovative product,
3Netics has put in place the vendors, floor space and key individuals to
produce 6,000 RadioBridges in 2005."
The SafetyNet(TM) RadioBridge
interconnects incompatible radios and bridges them beyond their normal
capabilities to provide immediate radio interoperability at an emergency
site. The RadioBridge features eight channels in up to four groups for
maximum operational flexibility. Based on feedback from hundreds of police,
fire and emergency workers, special connectors have been added to facilitate
quick connection of mobile radios and cell phones even with gloved hands.
A new headphone jack
has been added that is compatible with Dave Clark and other industry-standard
head phones. A selector switch allows monitoring and communicating with
any of the four operational groups. Audio output from each group can be
routed to a pair of stereo tape recorders or long-playing MP3 recorders.
New power options allow the RadioBridge to run on four standard D-cells,
12-volt vehicle power or 110-volt wall power. The RadioBridge also features
improved audio fidelity.
Aegis also announced
delivery of a SafetyNet(TM) RadioBridge purchased by the Space and Naval
Warfare Systems Center (SSC) - San Diego. SSC-San Diego provides technical
support for the Office for Domestic Preparedness (ODP) including engineering
services in the area of communications interoperability and recommendations
regarding available commercial off-the-shelf technologies for potential
deployment by state and local governments. The ODP is the primary office
within the Department of Homeland Security (DHS) responsible for implementing
a national program to enhance the capacity of state and local jurisdictions
to respond to, and mitigate the consequences of, incidents of domestic
terrorism. The ODP provides funds for the purchase of equipment and other
support to assist states and local jurisdictions to prevent, plan for,
and respond to acts of terrorism.
The National Commission
on Terrorist Attacks Upon the United States (also known as the 9-11 Commission),
an independent, bipartisan commission created by congressional legislation
and the signature of President George W. Bush in late 2002, has issued
its final report regarding the circumstances surrounding the Sept. 11,
2001 terrorist attacks, including recommendations designed to guard against
and mitigate future attacks. Communications difficulties have emerged as
one of the leading problems that hindered emergency rescuers after the
terrorist attack. The report highlighted the difficulty New York firefighters,
police, and other first responders had trying to talk to each other while
responding to the attacks and noted that some firefighters were directed
back into the North Tower before it was about to fall at the same time
other emergency workers were evacuated. The report also cited lack of radio
interoperability as a major and continuing problem. For example, the 9-11
Commission reported that emergency managers at the Pentagon crash site
had to rely on runners to exchange messages when radio communications failed
due to mismatched frequencies. Homeland Security's SAFECOM program has
tried to improve the interoperability of wireless devices used by public
safety organizations, but with 50,000 local agencies relying on an assortment
of equipment, officials have only begun to address the problem.
About Aegis Assessments
Inc.
Through the SafetyNet(TM)
line of products, Aegis provides wireless life safety and communication
solutions to public safety agencies and commercial security companies for
homeland security and life safety applications. Integrating emergency and
life safety systems available to the public and private sectors is the
new challenge in homeland security that the company's products and technologies
address.
"Safe Harbor Statement"
under the Private Securities Litigation Reform Act of 1995. This press
release contains forward-looking statements that involve risks and uncertainties.
Statements in this press release other than statements of historical fact
are forward-looking statements that are made pursuant to safe harbor provisions
of the Private Securities Litigation Reform Act of 1995. Actual results,
events and performance could vary materially from those contemplated by
these forward-looking statements. These statements involve known and unknown
risks and uncertainties that may cause the company's actual results in
future periods to differ materially from results expressed or implied by
forward-looking statements. You should not place undue reliance on forward-looking
statements, because they involve these risks and uncertainties. You should
independently investigate and fully understand all risks before making
investment decisions.
--------------------------------------------------------------------------------
Contact:
Aegis Assessments Inc.
Richard Reincke, 480-778-9140, ext. 104
Richard@aegiscorporate.com
www.aegiscorporate.com
--------------------------------------------------------------------------------
Source: Aegis Assessments
Inc. |
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