Varitek Links With Electronics Giant, Recoton
6 January 2000
Varitek Links With Electronics Giant, Recoton, in Manufacturing And Distribution Accord for Wireless Auto Navigation/Security System
LAS VEGAS, Jan. 6 -- Varitek Industries, Inc.
(OTC Bulletin Board: VATK) announced today the signing of an exclusive
manufacturing and distribution agreement with global electronics giant,
Recoton Corporation, Inc. , for Varitek's wireless auto security
and navigation system. The announcement, from Varitek Technologies Group
Chairman and CEO, Randy S. Bayne, was made at the 2000 International Consumer
Electronics Show, the nation's largest consumer electronics exhibition and
conference, where the product is being introduced as The Sentinel(TM).
Under the agreement, Recoton secures exclusive rights to manufacture,
mass-market and distribute the Varitek-controlled telematics technology under
Recoton's powerful and highly-regarded Jensen(R) brand. ("Telematics" is the
term used to refer to mobile technology products, which combine navigation and
security with Global Positioning Systems and wireless communication for real-
time surveillance and services.)
"This represents a remarkable opportunity for both Varitek and Recoton,"
stated Bayne. "We are now positioned to enter this huge growth market with
not only a superior product/service ... but also with the unmatched marketing
and distribution power of Recoton. Together we're going to make a real
impact, real fast."
Bayne's remarks were delivered at the on-going live, real-time
demonstration of the Sentinel(TM) at Recoton's expansive CES exhibit. The
Sentinel(R), offers affordable on-vehicle telematics features heretofore
available only through high-cost systems like GM's Onstar. The Sentinel(TM)
product/service combines cellular communication with Global Positioning
Technology; advanced on-vehicle integrated communications; and a 24-hour live-
operator monitoring service to deliver a range of services from emergency help
to travel information. Many cite telematics as a natural extension of the
$15 billion home security market.
"With the distribution muscle of Recoton (and the brand power of
Jensen(R)) behind it," concluded Bayne, "Sentinel(TM) could be appearing in
major national retail outlets as early as the third quarter of 2000."
As part of the agreement, Recoton has paid an up-front licensing fee to
Varitek and will begin finalizing manufacture and distribution plans
immediately.
Varitek Industries, Inc. and its wholly-owned subsidiary, Varitek
Technology Group develop, acquire, market and distribute cutting-edge wireless
data systems and technologies in response to identified consumer, commercial
and/or institutional needs and demands. Market-driven products and solutions
are derived from proprietary technologies developed in-house via its R&D
subsidiaries as well as through emerging strategic partnerships with third
party manufacturing and development firms.
Except for historical information, the matters discussed in this news
release may be considered forward-looking statements and could be subject to
certain risks and uncertainties that could cause the actual results to differ
materially form those projected. These include uncertainties in the market,
competition, legal, success of marketing efforts and other risks detailed from
time to time in the Company's SEC reports. The company assumes no obligation
to update the information in this release.
Further information regarding Varitek Industries, Inc. may be obtained by
calling 281-648-7770.