LUM 0.00% 2.3¢ lumacom limited

lumacom breaks through

  1. 683 Posts.
    18-12-2002 12:12


    HOMEX - Perth

    WA based Lumacom Limited has signed a major joint venture alliance
    agreement with one of Europe's largest outdoor advertising and
    billboard companies, the Mega Group.

    The agreement not only provides a unique opportunity for the WA based
    company to enter at the upper level of the international media arena,
    it also consolidates Lumacom's reputation as a credible and
    progressive new player.

    The Mega Group is offering its support in several significant ways.

    Additionally the Mega Group has shown a keen interest in taking a
    shareholding in Lumacom. As such, Lumacom have arranged for a
    placement of three million (3,000,000) shares at 7.5 cents each. This
    will place the Mega Group in the top 20 shareholder list.

    "The Mega group's shareholding is welcomed with excitement and is not
    only a sign of unquestionable support and confirmation of the
    benefits of Lumacom's products, but provides a stamp of approval from
    industry specialists that endorses Lumacom's potential in the
    advertising Industry," said Managing Director Rodd Sala. "It brings
    enormous credibility as well as industry insight". Discussions in
    Progress were advised at Lumacom's recent AGM.

    The joint venture agreement covers representative sale of Lumacom
    products by the Mega Group and also importantly the cooperative
    installation of Lumacom signs on high yielding, highly visible Mega
    Group sites.

    Lumacom will share advertising revenue with the leading outdoor
    advertising group, providing an extremely lucrative revenue stream
    over terms of typically; 4 and 5 years duration. Lumacom's versatile
    product line ranges from the innovative LumaPanel system through to
    the highest resolution video action replay screens. These products
    take advantage of "psycho-physics" based principals which present
    high resolution and high quality images whilst reducing the amount of
    pixel's normally required.

    The Mega Group operates out of London and all business evolving from
    the alliance will be conducted from the UK capital. The Group
    consists of a consortium of offices covering 13 countries across
    Europe. The collective will soon expand to welcome Russia and the
    Middle East into the union.

    The Mega Group is renowned for its success in large out door
    billboards and 'building wraps' which incorporate massive stretch
    vinyl billboards covering entire building facades.

    The unification is significant for Lumacom considering the industry
    status of the Mega Group, which occupies a leading position in
    outdoor advertising, generating turnover in the range of 100 million
    dollars per annum.

    The Chairman of Mega, Mr Andy Hopkinson today announced, "We are very
    excited by the agreement reached with Lumacom. Its superior product
    range and unique advantages - particularly its LumaPanel system -
    provide an unmatched and hugely competitive market edge."

    Lumacom signs will be installed on major and iconic sites where major
    audience numbers prevail and advertising dollars are maximized. The
    joint venture for cooperative installations provides a 50% share to
    Lumacom in the net revenue achieved under advertising contracts for
    signs entered into. This will provide an on-going source of revenue
    for Lumacom.


    On the back of this highly strategic agreement the Mega Group has
    placed its first order for a Lumacom screen for installation in
    Barcelona, Spain.

    The official order, valued at slightly less than $1million has
    already been received and the purchase deposit been paid.

    Mega is providing cash payment as security in advance to expedite
    manufacture and installation of the screen. Commissioning is
    scheduled for mid-March 2003. Manufacture is being undertaken in co-
    operation with LED manufacturing giant Opto-Tech Corporation, under
    the strategic alliance agreement announced with them at Lumacom's most
    recent AGM.

    Once an advertising contract is entered into for the Barcelona site,
    Lumacom will share 50% of the advertising income. Lumacom's share is
    anticipated to be in the order of $750,000 to $1 million per annum
    for 4 years with an option to renew.

    "The cooperative agreement and the strength of it, substantiated by
    this first order, is a direct result of the Company's recent focus in
    the European market," said Rodd Sala. He stated that Lumacom had
    commenced its marketing efforts into Europe at the beginning of 2002
    and quantified, "The first deal in Barcelona is not only lucrative,
    but will provide an excellent reference site - some 80 million people
    visit this Spanish tourism centre every year and you are not
    presented with a much better opportunity than this as your launch
    reference site for a market as big as Europe".

    The Mega group is further negotiating other major and strategic
    sights on a similar basis to the Barcelona installation throughout
    Europe, as well as direct sale opportunities. These will be announced
    as they occur.

    Contact: Rodd Sala (MANAGING DIRECTOR, Lumacom)
    Ph: 9228 8577
    Fax: 9228 8677
    email: [email protected]

    Authorised by: Rodd Sala

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