British Telecommunications Acquires NumereX Derived Channel Subsidiary - Bronzebase - Company Business and Marketing

Cambridge Telcom Report, Nov 15, 1999

NumereX Corp. Friday announced the sale of the shares of Bronzebase Ltd., a NumereX wholly owned subsidiary, which holds Versus Technology, Ltd. and related derived channel patents to British Telecommunications, Plc. (BT) for approximately US$20,000,000.

"This transaction is an implementation of NumereX's previously announced wireless data transport initiative, a broad strategic plan designed to focus the company's resources while optimizing the value of business assets deemed non-essential to the development of a wireless core competency," stated Stratton Nicolaides, chief operating officer of NumereX. "An important element of this transaction is the company's retention of certain commercial interests and licensed rights to technology which provides NumereX a continuing relationship with BT."

"BT RedCARE's ability to expand service in the United Kingdom and globally is strengthened by BT's acquisition of derived channel multiplexing technology," stated Simon Scott, General Manager of the BT's RedCARE division. "In addition, our continuing relationship with NumereX offers our respective businesses increased opportunities in respect to both technology development and global marketplace expansion."

NumereX and BT have also entered into a separate agreement which allows NumereX to retain licensing rights to market, sell and develop derived channel technology in certain territories, principally the Americas. In addition, NumereX and BT have entered into an agency agreement whereby NumereX can market BT's Digital Services Platform (DSP), a multi-functional gateway product for wireless and analog/digital wireline including the BT RedCARE Global System for Mobile (RedCareGSM) wireless product in certain territories, principally the Americas. Furthermore, NumereX will retain, in exchange for certain services, an interest in the BT RedCARE Telemetry venture, a revenue sharing agreement previously announced.

British Telecommunications plc is one of the world's leading providers of telecommunications services. With a market capitalization of around $114 billion, it is one of the largest private sector companies in Europe. Its principal activity is the supply of local, long distance and international telecommunications services and equipment in the UK, serving 28 million exchange lines. International direct-dialed telephone service is available to more than 200 countries and other overseas territories -- covering 99 per cent of the world's 800 million telephones. BT is expanding its presence overseas rapidly and has operations in more than 30 countries worldwide, with joint ventures in the Republic of Ireland, France, Switzerland, Spain, Germany, Italy, the Netherlands, Sweden, Japan, Latin America, Singapore, Malaysia, Korea and India. In the United States, BT's presence includes its ownership of Minnesota-based e-commerce and integration company Control Data Systems Inc. which it bought earlier this year through its market-leading systems integration business Syntegra. BT also owns Yellow Book USA, the largest independent yellow pages publisher in the States.

In July 1998, BT announced the formation of a multi-billion dollar global venture combining its trans- border assets and operations with those of AT&T and developing an intelligent Internet Protocol (IP)-based network which will support services such as global electronic commerce, global call centers and new Intranet based solutions. The joint venture, to be known as Concert, will include the US- based wholly owned subsidiary of BT also formerly known as Concert, which develops advanced networking services for global companies. Its intelligent network platform provides an array of global telecommunications services to more than 4,700 companies in over 50 countries. In the year to March 31, 1999, total turnover, including BT's share of its ventures' turnover, was $29,156 million with a pre-tax profit of $6,872 million including exceptional gains of $1660.8 million. Profit before these gains was $5,211.2 million.

NumereX is a communications company, which presently develops and markets a wide range of information transport services. These services enable customers around the globe to monitor and move information for a variety of applications ranging from home and business security to distance learning networks. Through its three major business units, NumereX offers products and services in wireless communications (Cellemetry), broadband communications (fiber optics and EDCOMM), and wireline communications (Derived Channel Systems). Additionally, NumereX provides network management systems to the operating telephone companies. FMI: www.nmrx.com