Exhibt
99.1
PRESS
RELEASE
|
SOURCE:
WPCS International
Incorporated
|
WPCS
to Acquire Southeastern Communication
EXTON,
PA — (PR Newswire-First Call) - June 26, 2006 - NASDAQ: WPCS
- News)
WPCS
International Incorporated (WPCS), a leader in design-build engineering services
for specialty communication systems and wireless infrastructure, has announced
that it has signed a letter of intent to acquire Southeastern Communication
Service, Inc. (SECS) www.secs-wireless.com
of
Sarasota, Florida for $1.8 million in cash and $1.4 million in WPCS stock.
SECS
is an engineering firm that has deployed and maintained wireless systems for
many corporate, government and educational clients, including the National
Oceanic and Atmospheric Administration (NOAA), Verizon, BellSouth, Comcast,
Time
Warner, University of Florida and Puerto Rico Telephone.
SECS
has
maintained a history of profitable operations while establishing itself as
a
leader in the design, deployment and maintenance of wireless networks throughout
the Southeastern U.S. For FY2005 ending December 31, 2005, SECS generated $6.4
million in revenue and $730,000 in adjusted EBIT or earnings before interest
and
taxes, excluding certain non-recurring owner expenses (a non-GAAP measure).
The
current annual forecast for SECS, ending December 31, 2006 is to achieve $7.5
million in revenue and $850,000 in EBIT.
Dan
Lester, CEO of Southeastern Communication Service, Inc., commented, “Our company
is continuing to expand in this fast growth wireless sector. We believe for
us
to keep pace with the demands of this market, we need the financial and
engineering support of a national organization. In our opinion, WPCS has
established itself as a national leader in the design and deployment of wireless
networks for a variety of applications. By teaming up with WPCS, our current
and
future customers will continue to receive the highest quality of service and
support available.”
Andrew
Hidalgo, CEO of WPCS International Incorporated, commented, “WPCS continues to
focus on its goal of organic growth and strategic acquisitions that will
strengthen our geographic scope and engineering capacity. With the pending
acquisition of SECS, we gain a company with a reputation for offering
outstanding wireless engineering services to a highly visible customer base.
Without question, this acquisition will increase our capabilities and allow
us
to continue to build upon our reputation as a premier wireless engineering
company. In addition, this acquisition will give us the opportunity to achieve
a
higher EPS target for FY2007.”
About
WPCS International Incorporated:
WPCS
provides design-build engineering services for specialty communication systems
and wireless infrastructure including site design, network integration,
structured cabling, electrical work and project management. The company has
an
extensive customer base that includes corporations, government entities and
educational institutions. For more information, please visit the website at
www.wpcs.com.
Statements
about the company's expectations, including revenue and earnings and all other
statements in this press release, other than historical facts, are "forward
looking" statements and are made pursuant to the safe harbor provisions of
the
Private Securities Litigation Reform Act of 1995. Such forward looking
statements involve risks and uncertainties and are subject to change at any
time. The company’s actual results could differ materially from expected
results. In reflecting subsequent events or circumstances, the company
undertakes no obligation to update forward-looking statements.
Contact:
Heather
Tocket / Corporate Communications Manager
WPCS
International Incorporated
610-903-0400
x102
ir@wpcs.com