RAE Systems Signs Definitive Agreement to Sell Its Interest in Its RAE Fushun Joint Venture
13 Janeiro 2011 - 7:15PM
Marketwired
RAE Systems Inc. (NYSE Amex: RAE), a leader in delivering
innovative sensor solutions to serve industrial, energy,
environmental, and government safety markets worldwide, announced
it has signed a definitive agreement to sell its 70 percent
interest in the RAE Fushun joint venture (the "Joint Venture") to
the Shenyang Research Institute of China Coal Research. Although
the company will not receive any direct compensation for its
ownership interest in the Joint Venture, under the terms of the
agreement the Shenyang Research Institute of China Coal Research
will assume all documented joint venture liabilities at the closing
of the transaction as well as repay to RAE Systems amounts owed to
RAE KLH and RAE Shanghai for products and services previously
provided to the joint venture. The agreement is expected to close
on or before March 31, 2011, subject to customary closing
conditions.
Robert Chen, RAE Systems president and CEO, stated: "We
previously stated our intention to exercise a disciplined exit from
our investment in RAE Fushun as the performance of this business
has not met our long-term revenue and operating margin growth
expectations. We expect going forward that the exclusion of RAE
Fushun operating losses will result in improved operating and net
income for the company in the future. We are focusing on long-term
growth prospects that fit within our mission to be the leading
innovator of safety and security products that deliver wireless
real-time data to enable our customers to make faster, better
decisions to keep people and property safe."
Established in December of 2006, the joint venture was
established with Liaoning Coal Industry Group Co., Ltd for the
purposes of engaging in the manufacturing and sale of safety
equipment for the coal mine industry.
About RAE Systems
RAE Systems is a leading global provider of rapidly deployable
connected, intelligent gas detection systems that enable real-time
safety and security threat detection. RAE Systems products are used
in more than 95 countries by many of the world's leading
corporations and government agencies.
RAE Systems offers a full line of wirelessly enabled solutions
including personal, hand-held, transportable, and fixed instruments
designed to meet the needs of any usage scenario. Applications
include energy production, refining, industrial and environmental
safety, public venue safety, and government first responder
markets.
For more information about RAE Systems, please visit
raesystems.com.
Safe Harbor Statement
This presentation may contain "forward-looking" statements, as
that term is used in Section 21E of the Securities Exchange Act of
1934. Forward-looking statements include, without limitation:
expressions of "belief," "anticipation," or "expectations" of
management; statements as to industry trends or future results of
operations of RAE Systems and its subsidiaries; and other
statements that are not historical fact. These types of statements
address matters that are subject to risks and uncertainties, which
could cause actual results to differ materially. Factors that could
cause or contribute to such differences include, but are not
limited to, the general economic and industry factors and
receptiveness of the market to RAE Systems and its products, and
the failure to close the sale of the interest in the Fushun joint
venture. In addition, our forward-looking statements should be
considered in the context of other risk factors discussed in our
filings with the Securities and Exchange Commission, including but
not limited to our annual report on Form 10-K and Form 10-Q
filings, available online at http://www.sec.gov. All
forward-looking statements are based on information available to
the company on the date hereof, and the company assumes no
obligation to update such statements.
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Company Contact: Investor Relations 408-952-8449
investorrelations@raesystems.com IR Agency Contact: Becky
Herrick 415-433-3777 bherrick@lhai.com
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