VANCOUVER, May 11 /CNW/ - Smartcool Systems Inc. (TSX-V: SSC) has signed a major distribution agreement with Tegma Asia Pte Ltd., giving this corporation the right to sell Smartcool's energy efficiency retrofit technology across select Asia Pacific markets. The agreement is for a five year term with a required purchase minimum of $9 million over the duration of the contract with 1.2 million being in 2010. Tegma now holds exclusive distribution rights for Smartcool's ESM(TM) and ECO(3)(TM) within the following territories: Hong Kong, Macau, Singapore, Malaysia, Guam, Saipan, Laos, Cambodia, Myanmar, Vietnam, Taiwan, Thailand, Indonesia and the Philippines.
"This agreement is a significant milestone for Smartcool as it moves us closer towards our goal of providing our energy efficiency solutions on a truly global scale," says George Burnes, President and CEO of Smartcool. "We are looking forward to working with such a strong regional partner in an area with a very significant market for energy efficiency products."
Relatively high electrical rates and a hot, humid climate, make these Asia Pacific countries an ideal market for Smartcool's energy efficiency technology for air conditioning and refrigeration systems. In addition to these clear advantages, Smartcool's new relationship will have the added benefit of access to the existing customer base of Tegma Asia's parent company, OMG Asia Pte Ltd. OMG is the largest integrated retail marketing service Company in Asia, with an extensive network of clients including some of the largest retailers in the region such as Tesco, Wellcome, Hero and Giant.
Bob Mebreur, CEO of OMG Asia, is enthusiastic about the potential for matching Smartcool's products with OMG's existing customers. "We estimate that the market for the ESM(TM) and ECO(3)(TM) within our present customer base is $30 million within the exclusive territories under contract. This gives us a solid platform from which to launch Smartcool's products into the highly lucrative Asian markets. Further expansion to other verticals, such as the Telecom sector where Smartcool has already established successful roll-outs will also significantly enhance these values in the Asia Pacific region."
About OMG Holdings
OMG Asia is the largest integrated retail marketing service company in Asia.
Over the years, it has built an extensive retail network with the top retailers throughout the Asia-Pacific, including China, Hong Kong, Indonesia, Malaysia, Philippines, Singapore, Taiwan, Thailand and Vietnam. An estimated total of 36 million consumers pass through the doors of OMG's retail network annually.
OMG Asia offers its clients a comprehensive suite of products and services to meet their in-store marketing needs. From in-store media applications to in-store demonstrations, merchandising, precision marketing, data analytics and below-the-line solutions; OMG's products and services have been developed with the aim of helping their clients better attract shoppers and marketers to build brand loyalty through proven, effective and precise means.
About Smartcool Systems Inc.
Smartcool Systems Inc. (TSX-V: SSC) manufactures and distributes the Energy Saving Module (ESM)(TM) and the ECO(3)(TM), which make refrigeration and air conditioning systems more efficient, resulting in proven cost savings, reduced energy consumption, and a smaller carbon footprint. More than 26,000 units have been installed worldwide for customers such as supermarkets, food distributors, telecommunications companies, hospitals, and hotels.
SOURCE Smartcool Systems Inc.
For further information: For further information: Further information for investors: George Burnes, Smartcool Systems, (604) 669-1388 or email@example.com; Jeff Walker, Howard Group, (403) 221-0915 Ext. 222