OTTAWA, ONTARIO — (Marketwire) — 02/21/12 — International Datacasting Corporation (TSX: IDC), a leader in digital content distribution solutions for the world-s premiere broadcasters, announces a second round of vendor financing and follow on new orders worth nearly US$5 million (gross revenue basis) with the Wananchi Group Ltd. for the expansion of its Direct-to-Home (DTH) broadcast service in East Africa.
International Datacasting further announces that it has successfully secured a second vendor financing package totaling US$5 million, which builds on its previously announced revolving credit facility for the transaction with Wananchi. This credit facility had been developed in co-operation with Export Development Canada (EDC) and a Canadian financial institution. The first round of financing was announced in July, 2011.
Wananchi Group Ltd. launched the first triple-play network in Africa last year, and successfully added Zuku Satellite to bring video, voice and data services to consumers in the Sub-Saharan region of Africa.
Mohamed Jeneby, the Managing Director of Zuku Satellite stated, “This structure continues to act as an important element for our relationship going forward. Canadian technology has played a key role for Wananchi in the growth of its pay TV service. As the business grows, we look forward to this facility growing along with it.”
In addition to financing, IDC was awarded new orders by Wananchi for products and services which total approximately US$5 million (gross revenue basis). With these new orders, IDC expects to supply over 40,000 customer premises units with new generation PVR-s, LNB-s, and antennas.
“IDC is very pleased with being able to support the ongoing success of the Wananchi Group. We have worked well together in the past and this financing structure, developed in collaboration with EDC and Wananchi, is another example of our productive working relationship,” stated Frederick Godard, President and CEO, IDC. “The expansion of this credit facility and second round of financing demonstrates our confidence in the Wananchi business model and in the growth of the African market as a key business opportunity.”
In June 2010, IDC announced an initial contract with Wananchi that included IDC broadcast products and professional services for the development, build and roll-out of the network. The contract included head-end equipment to enable a satellite-to-set-top-box distribution platform for the delivery of a secure broadcast system to homes throughout the region.
In July 2011, IDC announced the first round of vendor financing and two additional contracts with Wananchi for a multi-year Support Agreement for the expansion of their DTH network.
Forward-Looking Statements:
This press release contains forward-looking statements reflecting IDC-s objectives, estimates and expectations that may involve risks and uncertainties, including statements about the expected revenue impact of the Wananchi Group project. IDC-s actual results, performance, achievements and developments may differ materially from the results, performance, achievements or developments expressed or implied by such statements. Factors that might cause actual results to differ materially include, but are not limited to, competitive developments; risks associated with IDC-s growth; any difficulties with integrating acquired product lines into IDC-s business and/or manufacturing procedures; any difficulties or disputes with IDC-s subcontractors, contract manufacturers and suppliers; IDC-s dependence on the development and growth of the satellite datacasting market; a lengthy and variable sales cycle for IDC-s products and services; IDC-s reliance on a small number of customers for a large percentage of its revenue; regulatory risks and intellectual property infringement. IDC assumes no obligation to update these forward-looking statements to reflect events or circumstances after the date hereof except as expressly required by applicable law. Forward-looking statements are provided to assist external stakeholders in understanding IDC-s expectations as at the date of this release and may not be appropriate for other purposes. Readers are cautioned not to place undue reliance on such statements. More detailed information about potential factors that could affect IDC-s financial and business results is included in the public documents IDC files from time to time with Canadian securities regulatory authorities and which are available on SEDAR at , including, without limitation, IDC-s Annual Information Form dated April 29, 2011.
About International Datacasting Corporation:
International Datacasting Corporation (TSX: IDC) is a global leader in digital content distribution over satellite for the world-s premiere broadcasters in radio, television and digital cinema. IDC offers a broad portfolio of advanced solutions including Pro Audio, Pro Video, Pro Cinema and Pro Data for implementing broadcast content contribution and distribution applications. IDC-s solutions and IDC Systems are in demand for radio and television networks, digital cinema, 3D live events, distance learning, satellite news gathering, sport contribution, digital signage, and IPTV among others. IDC is headquartered in Ottawa, Canada, with regional offices in Arnhem, the Netherlands and in San Diego, California. IDC has installations in over 100 countries and service offices in Australia, Singapore and China with an international network of value-added partners and distributors.
Contacts:
International Datacasting Corporation
Christine Rozak, Director of Marketing
613-596-4120 x 2215
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