Arkados Signs Licensing Agreement with Tatung for Its PEMS Smart Factory Solution

NEWARK, N.J., July 16, 2014 /PRNewswire/ -- Arkados Group, Inc. (OTCQB: AKDS) ("Arkados" or the "Company"), a leading software and hardware design company focused on developing solutions that enable machine to machine communications for the Internet of Things ("IoT"), today announced that it has signed licensing agreement, through its wholly-owned subsidiary, Arkados, Inc. with Taiwan-based Tatung Co., ("Tatung") for its proprietary Process and Event Management System for Smart Factory ("PEMS-SF").  Released in May of this year, PEMS-SF 1.0 is a cloud-based platform which provides real-time status updates and two-way interactions (accessible even via mobile and remote devices) throughout the entire life cycle of a production environment. With its ability to gather, harvest, monitor, analyze and report real-time data for production testing, logistic material tracking, environment management, video analytics and quality reporting, PEMS-SF allows for integrated controls of both the production process and relevant production environment and thus enables significant improvement in efficiency and productivity of a factory.

Pursuant to a licensing agreement signed on July 10, 2014 (the "Licensing Agreement") by both Tatung and Arkados, Arkados will provide Tatung with PEMS-SF enabled stations or subsystems as well as data analytics and reports on a subscription basis in exchange for software license fee per station as well as update and annual maintenance fees from Tatung. Additionally, Arkados expects to collect royalty fee for the products that are manufactured by Tatung and contain software intellectual property owned by Arkados. 

Terrence DeFranco, Chief Executive Officer of Arkados Group, Inc., commented, "Today marks an important milestone for Arkados as our strategic partnership with Tatung enters into a new chapter. The Licensing Agreement attests to Tatung's continued confidence and support for Arkados and sets the stage for broader adoption of PEMS-SF at Tatung's manufacturing facilities as well as potential contract wins at other customers in the future. While the immediate financial benefit of this Licensing Agreement is tremendous for Arkados, we are also thrilled with the long-term prospects of PEMS-SF and believe it can be one of the key drivers for revenue growth and eventual profitability."   

Dr. Alan Pan, Chief Strategy Officer of Tatung's Consumer Business Group, commented, "While Tatung is dedicated to providing industry leading products and solutions to customers around the world through continuing innovation and integration, we believe that Arkados' cutting-edge PEMS-SF solution allows us to gain additional intelligence throughout the entire production cycle and drive down our production costs with its seamless integration into our existing computer systems in our manufacturing processes. We look forward to expanding the scale and scope of our win-win partnership with Arkados."  

About Arkados Group, Inc.

Arkados Group, Inc. ("Arkados" or the "Company") is a leading software and hardware design company focused on developing solutions that enable machine to machine communications for the Internet of Things (IoT). Our solutions support smart grid and smart home applications primarily in the areas of home and building automation and energy management. The Company's solutions are uniquely designed to drive a wide variety of wireless and powerline communication (PLC)-based products, such as sensors, gateways, video cameras, appliances and other devices. By utilizing the Company's solutions, Arkados' customers can bring numerous sophisticated, full-featured products to market faster at a lower overall development cost.  Arkados® is a registered trademark of Arkados Group, Inc. For more information about Arkados, please visit: http://www.arkadosgroup.com.

About Tatung Co.

As the company that best represents Taiwan by media's choice, Tatung Company has three business groups covering power related business, consumer electronics, and system integration. The Company focuses particularly on the development of advanced technologies and global network of operation. Specializing in serving branded customers on a global basis, Tatung offers its customers tremendous advantages on cost, speed, and seamless backend support. With smart home solutions and smart grid applications, Tatung demonstrates its synergy on home area networking (HAN) and energy management to make it affordable and complete. Its cutting-edge new products include PLC module, machine-to-machine bridge, smart plug with HomePlug & ZigBee, smart meter with command & control, in-home display, surveillance camera, and addressable LED lighting speaker.  For more information about Tatung, please visit: http://www.tatung.com.

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SOURCE Arkados Group, Inc.