ILCO INNOTELCO Signs Joint Venture Agreement with Kaner Inc.; Kaner Inc Will Distribute INNOTELCO Telecom Equipment in the $800 Million USD Annual Balkan Market
Business Wire - May 10, 2005 9:00 AM (EDT)
TORONTO, May 10, 2005 (BUSINESS WIRE) -- INNOTELCO, Inc. (NASDAQ - Pink Sheets: ILCO), a marketer and distributor of telecom hardware and network solutions, announced today it has signed a joint venture agreement with Kaner Inc., a distribution company located in Sarajevo, to distribute their products in the Balkan region of Europe. The agreement with Kaner, a highly respected 15 year old distribution company with a large network of sales associates located throughout Southeastern Europe, immediately establishes INNOTELCO's corporate presence in this region. In the past, Kaner has worked closely with regional government contacts for their distinguished client base, including many large multinational corporations.
Kaner CEO Nedad Kazic, former CEO of Maslesa d.o.o., one of the largest manufacturing concerns in the former Yugoslavia, with annual sales in excess of $500 million USD, is well known in the region both for his business successes and his work in bringing the 1984 Olympic Games to Sarajevo. "We are proud to have this agreement in place with INNOTELCO and I look forward to a long and very beneficial relationship. In this region, countries import about $800 million dollars USD annually worth of telecom communications equipment, with Croatia alone importing $200 million USD. The mobility market has decent market penetration but the Internet market penetration is only at 20%. There is a huge upside potential to capture in this market, and INNOTELCO supplying telecom hardware has an opportunity to make a serious dent." (Nedad Kazic, CEO of Kaner Inc.)
"DSL is only in major cities in the region, and higher broadband/fibre is offered to a very small portion of the population, with internet access via cable TV has only now starting to blossom, these are all opportunities and products we can supply as the region grows. There are serious opportunities before us, and the governments (Croatia, Bosnia Herzegovina, Serbia Montenegro) are spending the money they want to join the European Union within the next decade, and need to get their infrastructures on par with Western Europe's. Governments are all making infrastructure updating a top priority, and we believe this will be a billion dollar market." (Ross Sehovic, INNOTELCO)
INNOTELCO is now able to take advantage of the sales channels already established by Kaner. In addition to product distribution, Kaner will be providing necessary sales and administrative services to perform day to day operations, freeing INNOTELCO's management to focus on long term strategic growth.
"It's a model we are sure to have success with, handing over the tasks of selling to an experienced group who will mine leads through their rolodex and contacts. There are no upfront costs to our company, with everything paid out on a commission basis, and I am excited at the fact Kaner feels enough business can be generated to make it worth their while. I truly believe this will yield some very nice returns for INNOTELCO in the years to come" added Mr. Sehovic.
The Joint venture goes into effect immediately.
About INNOTELCO, Inc.
INNOTELCO, Inc. is a telecom hardware supplier, specializing in servicing emerging markets looking to expand their telecommunications networks. INNOTELCO's products range from indoor and outdoor coaxial cables and accessories to fibre optics and switching equipment.
About Kaner Inc.
Kaner is a 15-year-old distribution company located in Sarajevo, Bosnia Herzegovina, with a network of sales associates located throughout Southeastern Europe. The Company specializes in selling hardware and software equipment for the telecommunications industry, and various other manufacturing sectors. Kaner has extensive experience in procurement procedures in the region and is often engaged by foreign companies to help prepare and present bids in government tenders.
Safe Harbor Statement
This press release contains forward-looking statements as defined in the Securities Litigation Improvements Act of 1996. The words "believe," expect," estimate" and "project" and similar expressions define forward-looking statements, which speak only as of the date the statement was made. INNOTELCO, Inc. undertakes no obligation to publicly update or revise any forward-looking statements, whether because of new information, future events or otherwise. Forward-looking statements are currently subject to risks and uncertainties, some of which cannot be predicted or quantified. Future events and actual results could differ materially from those set forth in, contemplated in, or underlie the forward-looking statements. The risks and uncertainties to which forward-looking statements are subject include, but are not limited to, the Company's ability to meet its projected growth, the effects of government regulation, competition and other material risks.
SOURCE: INNOTELCO, Inc.
INNOTELCO, Inc., Toronto
Ross Sehovic, +1-416-565-0043
Copyright Business Wire 2005
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