Navicom to Transform From a Reseller to a Tier 1 Provider

Navicom Anticipates Selling About 1,000 Units Each Month with Reoccurring Revenue

SCOTTSDALE, Ariz., May 26 -- NowAuto, Inc. announced today as a follow up to yesterday's release, Navicom's undertaking of this initiative is strategic from a market positioning and financial perspective. This was critical to Navicom's goal of being a premier Telemetry provider on a Domestic and International level.

Today, Navicom is a reseller of various types of GPS hardware that is purchased from two different tier 1 providers. The type of hardware and its associated applications are dictated to Navicom then passed onto the customer. All backend applications such as custom mapping, report configurations currently run through the provider that Navicom purchased units through. Navicom has no control over that and no input on specific applications. These providers have a direct relationship with the Satellite carrier which in turn mark up airtime and pass it on to Navicom.

The significance of this project is that it will allow Navicom to control costs of its own front line hardware and backend revenue stream. Not only will Navicom have the ability to customize applications for clients based on specific need, they will also be able to decide what types of hardware will be certified to run on their state of the art backend. Navicom will have a significant edge over what is currently available in the GPS marketplace because they will be in a very exclusive group of tier 1 providers that can offer customized GPS solutions along with owning and operating their own backend server software combo. Many providers offer a limited choice of products or do not house their own backend server. Navicom will have both and more (i.e. better mapping, customized applications, multiple product suites and a server that is open to accept other manufactured products). The added benefit from being able to have a direct relationship with Microburst and GSM providers, will significantly change the margin structure for both the hardware and re-occurring monthly revenue stream.

"We're excited about having telemetry devices that are both Microburst and EGPRS capable; however, we also realize the need to have a server platform capable of accepting other manufactured devices as well. Applications are exploding in the telemetric industry; we want to be able to carry the best products available for our clients and distributors, while still maintaining the quality control on the backend," said Keith Tench, President of Navicom.

Navicom will also begin to transform their operation from a reseller to a provider. The company anticipates selling about 1,000 units each month with reoccurring revenue each month from those units. The Navitraq units combined with the q network will allow Navicom to sell direct to companies who operate under the same business model that Navicom operates under today. Nationwide there are thousands of these companies looking for another alternative to what is currently available.

"Navicom is actively seeking channel partners in the GPS industry. We're reaching out, creating partnerships, taking pre-orders and solidifying our go to market partners. Because of the wide array of products and configurations that we can offer combined with an enhanced mapping and software application, we are seeing many companies express interest in partnering with Navicom," said Scott Miller, CEO of NowAuto.

Navicom's new business model will allow them to pursue nationwide partnerships with large retailers as well as direct auto, truck and heavy equipment manufactures in both the United States and abroad.

Those interested in learning more about Navicom and the benefits of GPS Technology can contact info@nowgps.com.

Those interested in learning more about NowAuto, Inc. and wholly owned subsidiary Navicom can send an email to info@nowauto.com and request to be added to future news and upcoming events.