Digi Link Technologies Signs Letter of Intent to Acquire Two Technology Companies
ISELIN, N.J.--(BUSINESS WIRE)--Aug. 14, 2001--Digi Link Technologies, Inc. (OTC BB: DGLT) today announced that it has entered into a letter of intent to acquire SmartLink Development Network, Inc. located in Wallington, Connecticut and King Communications International Limited (``King'') (CDNX: KCI - news) USA, headquartered in Orlando, Florida.
According to the letter of intent, SmartLink and King shareholders will exchange all of their shares for restricted shares of Digi Link's common stock. The contemplated closing of the transaction is contingent upon receipt of funds generated through a private placement financing involving third party investor(s) for a minimum of $10 million. Digi Link currently is entertaining a number of different proposals, but no firm commitment is in place.
Digi Link Technologies www.digilinktechnologiesinc.com is combining advanced wireless data technology and Specialized Mobile Radio (SMR) services to create an intelligent and cost competitive wide area voice, data and enhanced mobile services network, know as the INTELLICOM® network. It is anticipated the INTELLICOM® network will ultimately include access to a suite of competitively priced advanced mobile services such as remote database access and management, e-mail, e-payment services, Internet access, and Automatic Vehicle Location (AVL).
Digi Link currently operates and manages, 60 SMR as well as a fixed earth station FCC satellite license. Their business focus is to network independently owned and operated 220 MHz SMR systems throughout the most densely populated cities in the United States and also create a wireless Internet portal that interfaces with 220 MHz transmissions. Their INTELLICOM® wide area network, located in the Prudential Center in Boston, Massachusetts, accounts for coverage in almost one-third of the continental United States.
SmartLink www.smartlinklp.com has developed a unique networking and trunking technology that offers the mobile radio industry and end users the ability to network independent sites utilizing different protocols and frequencies into a seamless wide-area, cellular-like system.
The product is unique in the world inasmuch as it allows previously incompatible radio sites to be networked together into an advanced communications network with enhanced handoff features, real time simplex, full duplex voice communications, state of the art dispatch, group calling and full public telephone interconnect.
King is a publicly traded corporation whose shares are quoted on the Canadian Venture Exchange (symbol: KCI). King operates through its wholly-owned subsidiary, King Communications USA, Inc. www.kingusa.com which designs, manufactures, markets and supports innovative voice and data solutions to a wide range of markets. Its primary focus on the manufacture and sale of mobile data terminals and related software applications.
King Communications mobile data products and software are in active use in the ground transportation industry, in particular the taxi, ambulance and courier markets. King is active as well in the governmental arena and has advised Digi Link it currently has a purchase order backlog of approximately $2 Million.
King Director Bill Scott stated that ``The marriage of Digi Link Technologies INTELLICOM® network licenses with SmartLink's state of the art wide area dispatch networking capabilities, and with the mobile data technology of King Communications is a powerful combination of licensed spectrum and advanced technologies that will provide the basis for the rapid and cost effective deployment of a highly advanced, competitively priced network services offering for fleet users. This should be a very positive long term step to the fulfillment of Digi Link's business vision and growth''.
SmartLink Chairman Mark Hatten expressed the following ``the contemplated transactions represent a significant step towards the offering of a needed solution for the fleet user market segment, namely a cost effective, wide area dispatch service with enhanced data capabilities. Today, there is no apparent cost effective wireless mobile service offering that meets the unique demands of fleet customers. The INTELLICOM® network should be embraced by the fleet customer market as well as other undeserved specialized mobile markets.''
``This was a logical step. Technology and a new recognized management team will allow Digi Link to expand nationally.'' said Peter Jegou, President & CEO of Digi Link Technologies. ``We are pleased with this opportunity to fulfill our business plan, as a publicly traded company, which we believe will enhance shareholder value and capital raising alternatives.''
This release includes forward-looking Statements. Statements contained in this Release that are not historical facts may be deemed to be forward-looking statements. Investors are cautioned that forward-looking statements are inherently uncertain. Actual performance and results may differ materially from those projected or suggested herein due to certain risks and uncertainties which including, without limitation, ability the companies to obtain necessary financing and regulatory and shareholder approvals for anticipated actions. Many of these risks and uncertainties will set forth in far greater detail in the companies' public filings. Additional information concerning certain risks and uncertainties that could cause actual results to differ materially from those projected or suggested may be identified from time to time in Digi Link's filings with the Securities and Exchange Commission, Digi Link's public announcements, copies of which would be available from the SEC or from Digi Link upon request.
Digi Link Technologies, Inc.
Director of Communications