October 19, 1998 - Strategic Partner Launches New Product
TORONTO, ONTARIO--ZTEST Electronics Inc., ZTST-CDN, ("ZTEST") is pleased to announce that its strategic partner, Gametele Systems Inc. ("Gametele") has signed a long-term agreement with Ontario Brain Injury Association ("OBIA") whereby Gametele will install and maintain its proprietary tracking system for OBIA's use in operating its charitable media bingo events. This system is a client-server application which is used to validate and track bingo card sales from multiple remote vendor sites as well as to provide inventory management and accounts receivable information.
In accordance with our exclusive manufacturing rights for the Gametele system, Gametele has placed its initial order with ZTEST for 1,000 remote sales terminals, at an aggregate value of $800,000, to be delivered between January 1999 and April 1999. It is anticipated that further orders will be received in the near future which will enable the expansion of OBIA's system by an additional 1,000 units by November 1999.
In addition to the exclusive manufacturing rights, ZTEST also holds 920,000 common shares of Gametele representing approximately 14.8 percent of the issued and outstanding common shares. ZTEST also has the right, through the conversion of existing debt, to increase its ownership by 3,500,000 common shares.
ZTEST, in addition to its proprietary line of Automatic Test Equipment, offers strategic partner services in electronic design, development and manufacturing to emerging high tech companies in return for long-term manufacturing contracts together with a combination of fees and equity positions.