Servelec Group Regulatory News (SERV)

19 Jun 2006 07:00

Servocell Group PLC19 June 2006 Servocell Group plc ('Servocell') to supply Beloxx Gmbh ('Beloxx') with A1 Active Latch Servocell Group plc is pleased to announce that it has reached agreement withBeloxx GmbH, Germany's leading cabinet maker, to supply its AL1 Active Latch fora new Be-Code active cabinet handle. The Be-Code system will combine Servocell's AL1 Active Latch with a very lowpower code system and a robust locking mechanism. The device has a selfcontained battery and is compatible with Beloxx's current range of cabinet locksenabling easy retrofitting. The agreement is for a minimum value of approximately £170,000 for delivery overan 18 month period, with initial deliveries expected to begin in Q3 2006.Servocell anticipates increasing demand going forward as Beloxx promotes its newproduct via an agreement with a major European cabinet manufacturer. This contract represents one of the Company's prospects highlighted at the timeof float and had been expected earlier but the scope of Servocell's involvementincreased to include mouldings, casting and assembly at its sub-contractfacility in Malaysia. This has resulted in a greater revenue per AL1 suppliedthan initially expected. Simon Powell, CEO of Servocell, commented:- 'This project started out as a sub-assembly, but we found that our extensivesub-contract network could deliver the whole solution to the customer in ashorter time and to a better cost than the alternates. The project will launchabout 3 months later than we anticipated at the time of float mainly due to thebroadening of the project scope but will ultimately save our customer valuabletime in bringing product to market' Matthias Blunck, CEO of Beloxx:- 'Servocell was able to deliver a very compact solution to a high standard, andby moving to a fully assembled product we have been able to save a considerableamount of development time.' Servocell Group plc Simon Powell, CEO 01279 621 500 Steven Weaver, CFO Bell Lawrie Ian McInally 0141 221 7733 Biddicks Shane Dolan 020 7448 1000 This information is provided by RNS The company news service from the London Stock Exchange