IKONA GEAR INKS POTENTIAL MULTI-MILLION DOLLAR DEVELOPMENT AGREEMENT
Prototype Satellite Product Provides Initial $108,000 in Revenue with Long Term Commercial Potential Upwards of $3 Million
COQUITLAM, B.C. 10/26/2005 08:00 AM GMT (TransWorldNews)
Ikona Gear International, Inc. (OTC: IKGI), a leader in innovative gearing systems technology, today announced a new prototype development project with a tier one U.S. defense contractor. Under the terms of the five-year agreement, Ikona will initially receive $108,000 for the design, development and customization of a satellite antenna pedestal based on its patented gear technology platform. The new pedestal will, at the onset, be limited to government and military tactical applications. The license agreement also provides the client an option to either purchase additional units from Ikona, or have units manufactured by a third party. The agreement calls for the first five production units to be available at $60,000 per unit, and for prices to be scaled down progressively on annual orders of 25, 50 or 100 units. At 100 units per year, the agreement would result in revenues in excess of $3 million. A five-year volume commitment of 180 units is required for the client to maintain exclusivity in the military and tactical satellite market.
"We are pleased to add a global telecommunications company and tier one U.S. defense contractor to the growing list of adopters of the Ikona Gear platform," said Ikona CEO and President Laith I. Nosh. "This project is the first major win for our new management team, and for our new approach of incorporating our technology into manufactured solutions for the global engineering community."
Nosh continued, "This project further demonstrates the value of our intellectual property as it applies to highly precise actuation applications, and holds tremendous potential to be a multi-million dollar commercial product. We look forward to working closely with our market partners as we strive to make Ikona the gearing technology platform standard."
The Ikona Gear's patented tooth form provides several advantages over conventional gear designs, including near - Zero Backlash for higher precision, extremely high gear ratios for high precision positioning, and very rigid, light-weight and compact design.
About Ikona Gear International
Ikona Gear designs, manufactures and markets innovative gearing-enabled applications and gear increasing and reduction systems. Ikona's patented intellectual property involves a unique gear tooth form that provides very high gear reduction and very high gear tooth contact. The company's patented technology affords significant advantages over traditional planetary gearing systems including: very high torque, reduced size and weight, zero backlash, accurate back-and-forth actuation, low wear, superior efficiency and low noise. Ikona trades on the Over the Counter market under the symbol "IKGI" and on the Frankfurt Exchange under the symbol "IG2". For more information on Ikona, please visit us at http://www.ikonagear.com.
Safe Harbor Statement under the Private Securities Litigation Reform Act of 1995: This news release contains forward-looking information within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, including statements that include the words "believes," "expects," "anticipate" or similar expressions. Such forward-looking statements involve known and unknown risks, uncertainties and other factors that may cause the actual results, performance or achievements of the company to differ materially from those expressed or implied by such forward-looking statements. In addition, description of anyone's past success, either financial or strategic, is no guarantee of future success. This news release speaks as of the date first set forth above and the company assumes no responsibility to update the information included herein for events occurring after the date hereof.