UVEL.L Regulatory News (UVEL)

17 May 2006 07:00

UniVision Engineering Ltd17 May 2006 Embargoed until 7am 17 May 2006 UniVision Engineering Ltd ("UniVision" or "the Group") Spearheading Growth into China Though the Acquisition of Taiwanese Security Company UniVision, the Hong Kong based designer and installer of digital surveillance and integrated security systems, today announces its drive into the Greater China region through the acquisition of a majority shareholding in one of Taiwan's largest specialist security companies, T-Com Tech. Co. Ltd ("T-Com"). UniVision will pay NT$30,287,500 (approx. HK$7.3 million or approx. GB£514,000)in cash to acquire 52.25% of the shares of T-Com. Established in 1998, T-Com is one of Taiwan's largest security system integrators and a turn-key provider of technology-based security solutions for medium and large commercial enterprises in Taiwan, as well as government agencies. It is one of the largest sellers of CCTV, access control and integrated security systems in the Taiwan region with a pool of blue-chip clients and employs over 50 highly skilled technical staff in Taiwan. The Board of UniVision is confident that the acquisition will create important synergies to the Group. T-Com's wide portfolio of complementary products and integrated engineering services will offer UniVision new competitive opportunities which will provide improved market exposure. The Group continues to endeavour to provide its customers with a "total solutions" package from advanced intelligence expertise through to state-of-the-art design and newdigital technologies. The acquisition will also result in cost saving efficiencies, due to the convergence of R&D knowledge and optimised engineering resources. The Board believes that the enlarged Group will be able to attract additional prestigious customers as well as strengthening and consolidating its vendor/supplier base, improving purchasing power. In addition, UniVision will also acquire all the competitive advantages of T-Com, such as: • Low product costs as a result of self-design and ODM (Original Design Manufacturer)• Lower set-up costs for running machines and systems as a result of T-Com's self-developed standalone DVR (Digital Video Recorder) which is expected to bring revolutionary changes to the industry• Strong project reference, beneficial for tendering large multinational projects The audited accounts of T-Com for the year ended 31 December 2005 showed turnover of £2.7 million, with an operational profit of £46,225 and a retained profit for the year of £30,152. Net assets at 31 December 2005 were £985,562. Mr. Stephen Koo, Chairman of UniVision, commented: "I am pleased with our acquisition of such a well respected company. T-Com has created an additonal gateway for us to explore the Greater China region and we are ready to take advantage of the significant business opportunities that we believe this will present. The synergies from this acquisition should impact positively on our profitability and we are conducting further discussions with similar companies outside China with the view to expanding UniVision's market." The Directors anticipate that UniVision's preliminary results announcement for the year ended 31 March 2006 will be released in mid-June. - ends - For further information visit www.uvel.com or contact: UniVision Engineering Limited +852 2389 3256Stephen Koo, ChairmanJohnny Tang, Finance Director Tavistock Communications 020 7920 3150Christian Taylor-WilkinsonMatt Ridsdale Notes to Editors: About UniVision Engineering Limited:UniVision , incorporated in Hong Kong in 1979, is well established in Hong Kong,Macau and China. The Group designs, sources and sells its own brand-name products and OEM products including, Microprocessor CCTV Control Systems, Video Distribution Amplifiers, Fibre Optic Transmission Systems and Smart Card Access Systems. UniVision currently offers hybrid security systems and has a portfolio of cutting edge digital technology used by its blue chip client base and the Hong Kong Government. UniVision is included in the Hong Kong Government's list of "Approved Suppliers and Installation of Video Electronics Equipment". The Group listed on AIM, part of the London Stock Exchange, in December 2005. This information is provided by RNS The company news service from the London Stock Exchange