china deal

Some more info from CEOs address to agm below. China will be a huge market for this product as so much of the world's manufacturing is done there. Someone else agrees and are forking out $10 million for the privilege of distributing it.


I am delighted to be able to announce today that our joint venture company has already
concluded a distribution agreement for DataTraceDNA in China.
Under the terms of the Agreement our JV company has granted the distributor an exclusive
distribution licence to market DataTraceDNA in certain designated applications in China for
a period of 10 years, with the right of renewal for a further 10 years. All rights to intellectual
property will remain with the JV company and continuation of the contract over the term is
subject to appropriate performance by the distributor.
The agreed licence fee is $10 million, of which the first non-refundable payment of
$500,000 has already been received. Three remaining payments are scheduled for
September 2006, and March and September 2007.
So you can see why we are very pleased with our progress with DataTraceDNA. We have
a fantastic product, a world-renowned business partner, and even before we have signed
our JV Agreements we have a $10 million distribution agreement, of which the first
$500,000 is already in the bank!