Business & Finance
Business and Finance
Business and Finance
Wed, January 7, 2009 Route1 Inc.: Route1 Grants Qwest Exclusive Rights That Positions Route1 for Positive Cash Flow in 2009
TORONTO, ONTARIO--(Marketwire - Jan. 7, 2009) - [ Route1 Inc. ] ("Route1") (TSX VENTURE:ROI) and Qwest Government Services Inc. ("Qwest"), a wholly-owned subsidiary of Qwest Communications International Inc. (NYSE:Q) today announced that they have signed an agreement granting Qwest the exclusive rights to resell Route1 security and [ identity management ] solutions to the U.S. Federal Government in 2009.
As part of the agreement, Qwest has committed to purchase a minimum of 30,000 Route1 [ MobiKEY ](TM) devices along with [ TruOFFICE ](TM) subscription-based services, which is valued at approximately US$8.0 million in 2009. The potential reoccurring annual revenue stream to Route1 from these 30,000 TruOFFICE subscription-based services is estimated at US$5.5 million. In addition to the purchase commitment, Qwest will provide advertising and marketing support to promote Route1's solutions to various U.S. Federal departments and agencies. Qwest will also provide network-hosting services to Route1 from their facilities.
"This exclusive agreement and relationship with Qwest represents an important milestone for Route1," said Andrew White, President and CEO of Route1. "The financial impact of this agreement means that we are well-positioned to generate positive cash flow in 2009, resulting in a stronger balance sheet to support our organic growth initiatives."
[ ABOUT ROUTE1 ]
Route1 delivers award-winning security and [ identity management ] solutions to customers world-wide. These solutions provide universal, [ secure access ] to all digital resources and sensitive data. At the heart of Route1's solutions is [ MobiNET ], a communications and service delivery platform focused on identity management and [ entitlement-based ] access to resources. Route1's patent-pending solutions are based on FIPS-140-2 cryptographic modules, and simplify the process of meeting increasingly stringent regulatory requirements around privacy and security. Headquartered in Toronto, Route1 is listed on the TSX Venture Exchange (symbol:ROI). For more information, visit [ www.route1.com ].
This news release, required by applicable Canadian laws, and does not constitute an offer to sell or a solicitation of an offer to buy any of the securities in the United States. The securities have not been and will not be registered under the United States Securities Act of 1933, as amended (the "U.S. Securities Act") or any state securities laws and may not be offered or sold within the United States or to U.S. Persons unless registered under the U.S. Securities Act and applicable state securities laws or an exemption from such registration is available.
Certain statements in this press release may contain words such as "could", "expects", "may", "anticipates", "believes", "intends", "estimates", "targets", "envisions", "seeks" and other similar language and are considered forward-looking statements or information under applicable securities legislation. These statements are based on Route1's current expectations, estimates, forecasts and projections about the operating environment, legal environment, economies and markets in which Route1 operates. These statements are subject to important assumptions, risks and uncertainties, which are difficult to predict and the actual outcome may be materially different from those contemplated in forward-looking statements. Unless otherwise required by applicable securities laws, Route1 disclaims any intention or obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.
(C)2008 All rights reserved. Route1, the Route1 Logo, Mobi, Route1 MobiKEY, TruOFFICE, PurLINK, EnterpriseLIVE, DEFIMNET, IBAD and Route1 MobiNET are either Registered Trademarks or Trademarks of Route1 Inc. in the United States and or Canada. All other trademarks and trade names are the property of their respective owners.
The TSX Venture Exchange has not reviewed or approved the contents of this press release and does not accept responsibility for its adequacy or accuracy.
