Servision PLC Regulatory News (SEV)

SerVision PLC

("SerVision" or the "Company")

New distribution agreement with Live Video USA Inc.

SerVision (AIM: SEV), the AIM quoted developer and manufacturer of digital security systems, is pleased to announce that it has entered into a distribution agreement appointing Live Video USA Inc. ("Live Video") as a distributor of SerVision's video gateway products in the United States and Canada (the "Agreement"). Live Video is an affiliate company established by Sol Mayer for the purpose of the Agreement with a focus on mobile DVR products for school and public buses in the United States.

Under the terms of the Agreement, Live Video will have limited exclusivity over the distribution of all of the Company's video gateway products in these territories until 31 December 2015 and over this period they have committed to an order schedule comprising six purchase orders with an aggregate value of US$4.0 million. This is based on certain terms and conditions being met by SerVision and Live Video as stipulated in the Agreement.

SerVision has received an initial purchase order from Live Video with an aggregate value of US$500,000 of which $250,000 in cash has been paid to SerVision and a 120 day letter of credit, valued at $250,000, which is expected to be opened by Live Video within 45 days. Pursuant to the Agreement Live Video has also agreed to submit additional purchase orders with an aggregate value of $500,000 prior to 31 December 2014 in order for them to maintain distribution rights in the United States and Canada for the 12 month period commencing 1 January 2015. They have also agreed to submit a further four purchase orders in 2015 with an aggregate value of $3.0 million according to an order schedule and pricings as detailed in the Agreement.

The products being supplied to Live Video from SerVision fall across its entire range of video gateway solutions including fixed and mobile commercial systems (SVG, UVG and MVG), home security (HVG) and body worn camera systems (CVG and CVG-M).

Under the terms of the Agreement SerVision is permitted to continue direct sales to its existing customers in United States and Canada for the duration of the Agreement.

Gidon Tahan, Chairman and CEO of SerVision, commented, "We are delighted to enter into this new distribution agreement covering the North American marketplace with a focus on school buses and public buses. We are confident that our partnership with Sol Mayer and the agreement with Live Video will help SerVision further enhance the reach of our market leading digital video products into the US and Canada."

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