CUI Global Signs (US) $1,000,000 Agreement for Global Distribution Rights of Its Vergence™ GasPT2 Inferential Metering Device
TUALATIN, Ore., June 18, 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 Distribution Agreement with Blue Flame, a global distribution company formed by The Belleau Wood Group ("BWG") in Dubai, United Arab Emirates (UAE). The Agreement calls for distribution of CUI Global's patented Vergence™ Natural Gas Metering Device. Specifically, the agreement gives Blue Flame global distribution rights for sale of the device excluding the United Kingdom, Italy, and North America.
Among other provisions, the Agreement calls for a one-time payment of $1,000,000 to CUI Global from BWG-Blue Flame as a "Distribution Fee." For its part, Blue Flame has already made initial penetration into various international energy markets in which it has either signed or is in the process of finalizing agreements that are expected to result in substantial sales of the product. These markets include Romania, Thailand, Mexico, Turkey, and the recently announced testing agreement in the UAE.
CUI Global's President & CEO William Clough commented, "This agreement with BWG/Blue Flame is yet another step towards full commercialization and international sales of our patented Vergence™ Technology. BWG, through its distribution company Blue Flame, is committed to rapidly placing our technology with various international energy leaders in both the government and private sectors. Their extensive network of energy professionals, end users, and regulatory authorities worldwide will enable us to present and sell our devices to a broader customer base in a highly strategic fashion."
Patrick F. Campos, BWG's CEO, stated, "We are delighted to be CUI Global's worldwide distribution partner for the groundbreaking Vergence™ Technology. We have clearly seen that the Vergence device receives a ready and enthusiastic reception in the international energy community. Through Blue Flame, we will be working hand-in-hand with CUI Global to rapidly open new distribution channels for this exciting product in the global energy markets."
"Execution of this agreement with BWG/Blue Flame, coupled with agreements already signed and announced with Orbital-UK in the United Kingdom and Socrate s.p.a. in Italy, means that we now have professional sales coverage and representation on a worldwide basis, leaving us to concentrate our efforts on penetrating the North American energy market. We will be addressing North America, including the United States and Canada, over the next few weeks," explained Clough.
"In the meantime, we are quite confident that Blue Flame will begin to immediately introduce this ground breaking technology to new customers in the Middle East, South America, Europe, and Asia – all leading to increased revenues and, thereby, increased value for CUI Global and its Shareholders," concluded Clough.
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.
BWG has established Blue Flame as a distribution platform for the Vergence™ Natural Gas Analysis Device and other specialized and innovative technologies. For more information, please see www.bwg-blueflame.com.
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.