NEW YORK, Sept. 17 /PRNewswire-FirstCall/ -- MSGI Security Solutions Inc. (OTC Bulletin Board: MSGI) "MSGI" today reported that it has executed a new contract with Hankook Semiconductor, a division of Samsung Electronics, to manufacture and supply advanced technology displays and other electronic products for commercial security purposes for Daewoo International.
Under the terms of the new contract, MSGI will subcontract to Hankook the right to manufacture certain Hi-definition display systems, which will be supplied to Daewoo for its existing customers.
MSGI has similarly entered into an agreement to supply Daewoo with these products based upon Daewoo specifications from its customers. Under the terms of this new agreement, the company is anticipating annual gross revenue of approximately $100 million, as previously disclosed in the company's August 26, 2008 announcement. Profit margin expectations for the revenue generated by this agreement will be made available after the conclusion of the first relevant quarter, which should be for the period ended December 31, 2008.
Jeremy Barbera, Chairman and CEO of MSGI: "Effectively, this accelerates the scope and depth of our relationship with some of the most recognized firms in Asia so that we are direct holders of these contracts rather than sub-contractors as was the case in the past. This will strengthen MSGI's overall market position and our global footprint."
Samsung's Semiconductor Business was founded in Korea with the acquisition of Hankook Semiconductor in 1974. The Semiconductor Business of Samsung Electronics, based in Giheung, Korea, consists of three major divisions: Memory, System LSI and Storage. It has pioneered the development of numerous advancements in chip technology that are now widely used in mobile, desktop and other digital products.
Daewoo International Corporation, with its roots going back to 1967, has been serving a leading role in South Korea's economic development. Daewoo International Corporation has emerged as a company dedicated to international trading and investments. The international trading and construction sector of Daewoo Corporation is now three (3) separate companies: (1) Daewoo International Corporation, (2) Daewoo Engineering and Construction Company Limited, and (3) Daewoo Corporation. Since the completion of the workout on December 27, 2003, Daewoo International Corporation has been rapidly growing to fulfill the vision of becoming a "World Best Global Trading & Investment Company".
About MSGI Security Solutions, Inc.
MSGI Security Solutions, Inc. is a leading international provider of proprietary security solutions to commercial and government organizations. MSGI is developing a combination of innovative emerging businesses that leverage information and technology with a focus on encryption technologies for actionable surveillance and intelligence monitoring. The Company is headquartered in New York City where it serves the needs of counter-terrorism, public safety, and law enforcement in the United States, Europe, the Middle East and Asia. More information on MSGI is available on the company's website at www.msgisecurity.com
The information contained in this news release, other than historical information, consists of forward-looking statements within the meaning of Section 27A of the Securities Act and Section 21E of the Exchange Act. These statements may involve risks and uncertainties that could cause actual results to differ materially from those described in such statements. Although the Company believes that the expectations reflected in such forward-looking statements are reasonable, it can give no assurance that such expectations will prove to have been correct. Important factors, including general economic conditions, spending levels and other factors could cause actual results to differ materially from the Company's expectations.
Linda Decker, VP - Investor Relations
Jeffrey Myhre, VP - Editorial
MSGI Corporate Finance
917-339-7134
SOURCE MSGI Security Solutions Inc.
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