Softcat Regulatory News (SCT)

27 Sep 2006 07:00

Screen Technology Group plc27 September 2006 For Immediate Release 27 September 2006 Screen Technology Group plc ("Screen Technology" or "the Company") Technical and financial partnership with Wilden AG Screen Technology Group plc ("Screen Technology" or "the Company" or "theGroup") the designer and manufacturer of revolutionary high-resolutionlarge-screen displays for high ambient light environments today announces anexciting new technical and financial partnership with Wilden AG. Highlights • Long-term supply arrangement for Wilden to supply injection moulded light-guides to Screen Technology.• Wilden will set up a production "cell" to produce light guides and operate Screen Technology's tile assembly machine to produce finished tiles.• Wilden will provide funds to acquire the first high-speed machine and provide long-term finance of the injection moulding tools.• Total investment by Wilden totalling over £1.2 million and over £500,000 by the beginning of 2007.• The partnership will accelerate Screen Technology's expansion of production resources.• Potential for Wilden to reproduce further production cells in locations around the world.• Wilden has the technical competence, financial resources and global reach to be a valuable partner for Screen Technology for the future. Peter Smyth, non-executive Chairman said "We are very excited by the partnership with Wilden AG, which will give us astrengthened platform for growth. Wilden, has the technical competence, theresources and the global reach to be a valuable partner and the investmentWilden is putting into the partnership will give us a greater ability to expandto meet expected market demands." Technical and financial partnership Screen Technology is pleased to announce that it has signed letters of intentwith Wilden AG ("Wilden") to enter into a partnership for the production ofinjection moulded light guides and the operation of the Company's first highspeed tile assembly machine. Wilden is a major producer of specialist high-quality high-technology injectionmouldings for the automotive, electronic and telecommunications and medicalindustries. Its customers include Daimler Chrysler, Astra Zeneca, Siemens,Sennheiser and Roche. Wilden has a broad international presence with facilitieslocated in North America, Western and Eastern Europe, and the Middle and FarEast. The agreement provides that Wilden will manufacture two new injection mouldingtools to produce light guides for use in the manufacture of ITrans tiles. Thecost of these tools will be spread over three years. Furthermore, Wilden has agreed to fund the acquisition of the first high speedtile assembly machine when it completes its factory acceptance testing, expectedto be in October of this year. Wilden will provide cash to meet the finalpayment due on the delivery of the machine with further payments amounting tothe full £1.1 million cost of the machine. Wilden's total contribution to thecost of moulding tools and the tile assembly machine is expected to amount toover £500,000 by the beginning of next year. In addition, Wilden will investitself in dedicated injection moulding machinery to produce the light guides ona 24/7 basis. Wilden will operate the tile assembly machine at its own premises on a sub-contract basis although the machine and all the intellectual property that goeswith the ITrans process will continue to belong to Screen Technology. The boardexpects this production "cell" making light guides and ITrans tiles at onelocation to be a model for more cells which may be located around the world. This partnership is a very exciting opportunity for Screen Technology. InWilden, we have found a partner with the technical competence and the resourcesand global reach to work with us through a period of rapid expansion.Furthermore the investment that Wilden is putting into this project in time andresources as well as significant cash commitment underlines the faith we bothhave in the success of ITrans. For more information please contact Screen Technology Group plc www.screentechnology.comThomas Jarman, CEO 01223 559600Simon Barton, Finance Director Buchanan Communications 020 74665000Isabel Podda Notes to Editors Screen Technology is the designer and manufacturer of revolutionaryhigh-resolution large-screen displays designed for high ambient lightenvironments. The high resolution and high definition of the Company's displays give ahigh-quality image suitable for advertising images and video as well as publicinformation displays. They are visible at short viewing distances as well asacross larger venues making them particularly suitable for large retail outlets,shopping malls, control rooms and transport concourses where customers might bewithin 10m of the display, a distance at which LED display technologies becomeunsuitable. The high brightness means that the displays are also easily visiblein the kind of high ambient light environments where conventional LCD or plasmatechnologies become unusable. Screen Technology's patent protected technology uses moulded optical fibre tilesto produce seamless large displays using standard production LCD panels. Thescaleable modular technology enables screens to be built in a wide variety ofshapes and of theoretically unlimited size. Screen Technology Group plc listed on AIM, a market operated by the London StockExchange, on 1 August 2005. This information is provided by RNS The company news service from the London Stock Exchange