CUI Global Signs $40,000,000 Agreement for North American Distribution Rights of its Vergence™ GasPT2 Metering Device
TUALATIN, Ore., July 23, 2012 /PRNewswire/ -- CUI Global, Inc. (NASDAQ: CUI), a platform company dedicated to the acquisition, development, and commercialization of new, innovative products and technologies, today announced it has signed a non-exclusive agreement with Energy Measurement Consulting LLC (EMC) out of Houston, Texas for North American Sales of its Vergence™ GasPT2 natural gas metering device.
Among other provisions, the agreement places significant minimum annual order requirements on the Distributor. Under the terms of the agreement, EMC commits to selling, at a minimum, approximately 2,000 units, valued at between $40,000,000 and $50,000,000 over the five-year term. The agreement further calls for EMC to make an initial purchase of 150 units, valued at $2,500,000, for delivery in 2012.
The Vergence GasPT2, designed by GL Industrial Services (GL) and exclusively licensed worldwide to CUI Global, provides a low cost solution to measure gas quality. When connected to a natural gas system, the GasPT2 provides a fast, accurate, close to real-time measurement of physical gas properties such as thermal conductivity, speed of sound and carbon dioxide content. From these measurements the device infers an effective gas mixture comprising five components: methane, ethane, propane, nitrogen, and measured carbon dioxide and then uses ISO6976 to calculate, among other things, the gas quality characteristics of calorific value (CV), Wobbe index (WI), relative density (RD), and compression factor (Z).
EMC's President and industry veteran Brian McKenzie states, "To bring a new but proven technology like the GasPT2 into the North American market is a very exciting venture for us. The natural gas industry is shaping up to be a long term driver for an efficient and inexpensive fuel source, especially in the power generation field. We feel our network of energy professionals can effectively introduce this technology to the U.S. and Canadian markets and eagerly accept the challenge."
CUI Global's president & CEO William Clough commented, "The association with and commitments from Energy Measurement Consulting and the introduction of the Vergence Technology into the North American energy sector marks a major step toward worldwide exposure and acceptance of this exciting product and technology. We are delighted to have EMC's industry experience and marketing expertise behind us as we move forward in the global energy markets."
About CUI Global, Inc.
Delivering Innovative Technologies for an Interconnected World . . . . .
CUI Global is a publicly traded platform company dedicated to maximizing shareholder value through the acquisition and development of innovative companies, products, and technologies. From its Vergence™ GasPT2 platform targeting the energy sector, to its subsidiary CUI Inc.'s industry leading digital power platform targeting the networking and telecom industries, CUI Global has built a diversified portfolio of industry leading technologies that touch many markets. As a publicly traded company, shareholders are able to participate in the opportunities, revenues, and profits generated by the products, technologies, and market channels of CUI Global and its subsidiaries. CUI Global prides itself on operating with the same level of integrity, respect, and philanthropic dedication that was put in place by CUI Inc.'s founder more than 20 years ago. It is these values that allow the company to make a difference in the lives of their customers, their community, their employees, and their investors. Recently, a move was made to merge and streamline resources with its subsidiary CUI Inc. in order to create a unified, international brand that now positions CUI Global for further strategic expansion.
About CUI Inc.
CUI Inc. is a technology company dedicated to the development, commercialization, and distribution of new, innovative electro-mechanical products. Over the past 20 years, CUI has become a recognized name in electronic components worldwide in the areas of power, interconnect, motion control, and sound. CUI's solid customer commitment and honest corporate message are a hallmark in the industry. CUI is a wholly owned subsidiary of CUI Global, Inc.
About Energy Measurement Consulting LLC
Energy Measurement Consulting was created to provide the natural gas, pipeline, and gas combustion power industries with a reliable source for gas quality measurement. As the authorized North American distributor of the Vergence GasPT2 system, Energy Measurement Consulting combines a network of natural gas professionals dedicated to providing innovative products and consulting services. The revolutionary GasPT2 is an instrument to provide fast and accurate, real-time monitoring of the caloric value and relative density of natural gas in the pipeline. For more information, visit www.energymeasurement.net.
Important Cautions Regarding Forward Looking Statements
This document contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. Such statements are subject to risks and uncertainties that could cause actual results to vary materially from those projected in the forward-looking statements. The company may experience significant fluctuations in future operating results due to a number of economic, competitive, and other factors, including, among other things, our reliance on third-party manufacturers and suppliers, government agency budgetary and political constraints, new or increased competition, changes in market demand, and the performance or reliability of our products. These factors and others could cause operating results to vary significantly from those in prior periods, and those projected in forward-looking statements. Additional information with respect to these and other factors, which could materially affect the company and its operations, are included in certain forms the company has filed with the Securities and Exchange Commission.
SOURCE CUI Global, Inc.