CUI Global Signs Agreement to Sell 100 Vergence™ GasPT2 Devices, Valued at $2,500,000, in the United Arab Emirates
TUALATIN, Ore., May 2, 2012 /PRNewswire/ -- CUI Global, Inc. (NASDAQ: CUI), a platform company dedicated to the acquisition, development, and commercialization of new, innovative technologies, today announced it has signed a Memorandum of Understanding with The Belleau Wood Group (BWG) in Dubai for distribution of its patented Vergence™ Natural Gas Metering Device in the Gulf Cooperation Council (GCC) region. Specifically, the agreement gives BWG distribution rights for sale of the devices in the United Arab Emirates, the Kingdom of Saudi Arabia, Qatar, the Kingdom of Bahrain, Kuwait, the Sultanate of Oman, and the Republic of Yemen.
The Agreement obligates BWG to purchase a "minimum initial order" of 100 units, valued at $2,500,000 (based on MSRP), following the successful completion of a thirty (30) day test of one device at a site to be selected by BWG and CUI Global. In order to pass the test, the device must meet the +/-0.5% accuracy standard set forth in the American Gas Association (AGA) Section 5 Standard, a standard the device has met or exceeded in all previous testing.
CUI Global's president & CEO, William Clough, commented, "This agreement is the first such agreement that obligates the distributor to issue purchase orders and purchase a minimum number of our GasPT2 units in order to test the devices. Previously, we had to provide the devices without such an obligation because of the new, unproven nature of the technology. Now, as a result of our successful testing in Italy at Snam Rete; in Poland with GazSystems; with Ofgem in the United Kingdom; and with Gasunie in The Netherlands, we are able to insist on confirmed purchase orders before we provide a test device."
Patrick F. Campos, BWG's CEO, stated, "BWG is very enthusiastic about this new relationship with CUI Global. We are convinced that this is the first of many agreements we will establish to market and sell this exciting new technology around the world. In fact, we are in the process of establishing a subsidiary company to be known as BWG-Blue Flame that will focus on distribution of the Vergence™ Technology in partnership with CUI Global. The natural gas market in the Gulf Region is extensive and the efficiencies and real-time monitoring offered by the Vergence GasPT2 device are unparalleled. We are confident that there will be great interest and significant sales of the device in the Gulf once it has been tested, which is why we are wiling to make this commitment to CUI Global and its team."
"This agreement and subsequent agreements with BWG and others will continue to prove the viability and value of the Vergence Technology, while significantly impacting our top and bottom lines," continued Clough.
"This agreement is yet another step forward in the company's efforts to expand our market share, increase our revenues, and enhance and increase our shareholder value," Clough concluded.
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 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 The Belleau Wood Group (BWG)
The Belleau Wood Group (BWG) is a strategic asset-gathering platform built around a unique special projects development business. Employing a highly skilled, multidisciplinary team of professionals, BWG operates worldwide across a wide range of industries in partnership with dynamic companies to create value and build upon BWG's unique proprietary portfolio of assets.
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.