Joint Alliance Provides AmbiCom with Access to ECT's Technologies and Markets; Replaces Previously Contemplated Merger
MILPITAS, Calif., June 13, 2011 /PRNewswire/ -- AmbiCom Holdings, Inc. (OTCQB: ABHI), a leader in the development of wireless products for medical equipment suppliers, today announced that it has signed an agreement to form a joint alliance between its AmbiCom Technology, Inc. ("ATI") subsidiary and E-Care Technology Corporation, ("ECT") Taiwan. The agreement became effective May 1, 2011 and runs for a period of three years.
ECT is a leading manufacturer of infrared ear thermometers in Taiwan and also develops other medical devices such as intra-oral camera (dental camera). Under this joint alliance, ECT will develop, test and manufacture infrared ear thermometers and other medical devices as ATI private-labeled products under the brand name "E-Care USA, Inc." This agreement effectively gives AmbiCom new access to the $304 million market for wirelessly connected home health care devices.
"The joint alliance enables us to aggressively enter the home health care market with a differentiated, state-of-the-art suite of products utilizing our wireless technology platform," commented John Hwang, CEO and Chairman of AmbiCom. "As discussions with ECT progressed, it became clear that a joint alliance was more favorable to our shareholders than the previously contemplated merger, as this agreement provides AmbiCom with access to state-of-the-art medical devices and robust engineering to integrate our wireless communications components. Together, we expect to develop and introduce a superior product to US customers by the end of this year. This is another example of our solid relationships within the medical device industry, and we expect the joint alliance will allow both of our companies to leverage their core competencies cost effectively, in order to deliver this product and potential follow-on products in a timely manner."
AmbiCom is headquartered in Milpitas, California, and is a leading designer and developer of wireless products focusing on the wireless medical industry. The Company's wireless modules and devices are based on the Company's innovative application software for both Wi-Fi and Bluetooth technologies. AmbiCom is committed to wireless design and development of software and hardware, and to bringing new and innovative products to the wireless medical markets and other sectors. The Company plans to grow organically, and to augment that growth by selectively acquiring complementary products and technologies via acquisition opportunities deemed to be of strategic value.
This press release contains 'forward-looking statements' within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934. Although the forward-looking statements in this release reflect the good faith judgment of management, forward-looking statements are inherently subject to known and unknown risks and uncertainties that may cause actual results to be materially different from those discussed in these forward-looking statements including, but not limited to, our ability to maintain our website and associated computer systems, our ability generate sufficient market acceptance for our shipping products and services, our inability to generate sufficient operating cash flow, and general economic conditions. Readers are urged to carefully review and consider the various disclosures made by us in the our reports filed with the Securities and Exchange Commission, including those risks set forth in the Company's Current Report on Form 8-K filed on November 13, 2007, which attempt to advise interested parties of the risks and factors that may affect our business, financial condition, results of operation and cash flows. If one or more of these risks or uncertainties materialize, or if the underlying assumptions prove incorrect, our actual results may vary materially from those expected or projected. Readers are urged not to place undue reliance on these forward-looking statements, which speak only as of the date of this release. We assume no obligation to update any forward- looking statements in order to reflect any event or circumstance that may arise after the date of this release.
Dave Fore, Client Manager and Senior Research Analyst, Hayden IR: (206) 395-2711 or [email protected]
SOURCE AmbiCom Holdings, Inc.