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CSI Wireless Signs Supply Agreement with Launch of Fixed Wireless Telephone
CALGARY, AB, May 14, 2002 - (TSX:CSY): CSI Wireless Inc, a leader in GPS
and wireless technology products for automotive, consumer and commercial
applications, announced today that it has signed a Development and Supply
Agreement with a major organization. The signing of the agreement coincides
with today's official launch of the CSI Wireless fixed-base, digital
wireless
telephone.
Under this new agreement, the telephone will be distinctly branded both
domestically in the U.S. and internationally. The new organization partner
will maintain exclusivity on the fixed wireless telephone for as long as it
purchases a minimum of approximately $12.5 million per quarter. The
agreement
term specifies one-year periods, which automatically renew at the end of
each
year based on the mutual satisfaction of the parties.
The first deliveries are planned to begin in the third quarter of 2002.
The agreement also includes non-recurring engineering fees payable over the
first year. The first of these payments was received by CSI Wireless upon
the
signing of the agreement.
The issuance of initial purchase orders to CSI Wireless under the
agreement is conditional upon the fixed wireless telephone passing product
certification, reliability testing and manufacturing line certification, to
the satisfaction of the new organization partner.
The new organization partner in this agreement is a new partner for CSI
Wireless and not the organization represented by the previously announced
conditional letter of intent (LOI), originally disclosed by CSI Wireless in
November, 2000. Accordingly, prior to signing the new agreement, the Company
gave notice to the organization under the LOI that CSI Wireless was taking
another path for sales of the fixed wireless telephone product.
The new product from CSI Wireless resembles a typical desktop or wall-
mounted telephone but communicates wirelessly using cellular networks rather
than linking to traditional copper wire telephone networks. These fixed
wireless telephones are used as part of wireless local loops (WLL),
primarily
in rural areas and developing countries where current landline systems are
either unavailable or inadequate. In developing countries, wireless local
loop
(WLL) telephone systems often represent the fastest and most cost-effective
method of providing basic telecommunications services.
"I am pleased to report this important step as it firms up our entry into
the enormous fixed wireless telephone market." said Mr. Verhoeff. "In many
countries throughout the world, the development of cellular telephone
service
takes precedence over traditional wire-line networks, due to lower system
costs and quicker deployment. Fixed wireless products, including CSI's new
fixed wireless telephone - are instrumental in meeting these countries'
needs."
Annual General Meeting Today
The Company also invites its shareholders and members of the investment
community to attend the CSI Wireless Annual General Meeting today, Tuesday
May
14, at 3:00 p.m. (Calgary time) in Calgary at the Lakeview Endrooms of the
Westin Hotel at 4th Avenue and 3rd Street S.W.
About CSI Wireless
With offices in Calgary, Silicon Valley, and Phoenix, CSI Wireless
designs and manufactures innovative, cost-effective, wireless and GPS
products
for mobile and fixed applications in the agriculture, marine, automotive and
other markets. Through the integration of GPS and wireless, CSI has begun
serving several emerging high-growth markets including Fleet Management,
Asset
Tracking, Telematics and Mobile Computing applications. The Company owns
several patents and intellectual property relating to wireless and GPS
technologies. CSI Wireless has licensed its cellular technology to GPS,
cellular handset, and chipset manufacturers. The company's common shares
trade
on The Toronto Stock Exchange under the trading symbol "CSY", with
approximately 18.4 million outstanding. For online information about CSI
Wireless, go to www.csi-wireless.com
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