FOR IMMEDIATE RELEASE
Empower Technologies™ Update
January 14, 2013 – Richmond, British Columbia, Canada – Empower Technologies Corporation (TSX.V: EPT) (“Empower” or the “Company”) is pleased to provide to its shareholders an update regarding the Company’s business and operations.
Empower Defense Systems Inc.
Commencement of Empower Defense Systems Inc. operations and the securing of a defence contract for the production and supply of military application control systems will be the Company’s principal focus for the 2013 fiscal year. The Company will make further announcements as progress is made.
Purchase Orders with Asian Automotive Camera & Electronics Manufacturer
On March 30, 2012, the Company announced that it was close to completing the development of two automotive products for a Taiwan based customer. At that time, the customer advised the Company of its intention to submit a firm order and estimated quantities in April of 2012. As a result, the Company announced the tentative target date for first delivery for the end of the summer of 2012. Following the Company’s completion and delivery of the software code to the customer for approval, the Company was advised that no firm order or estimated quantities or product delivery would be made until the prototype was approved by the customer’s OEM (original equipment manufacturer) client. The customer loaded the Empower software into its proprietary hardware prototype and delivered it to their European client for evaluation and acceptance in November 2012.
There is no assurance the European client will accept the prototype. If the approval is not received by end of February 2013, the Company anticipates that no approval and no product delivery will be likely forthcoming and that more development may have to follow. Further, it is possible that the product may have to be cancelled as a result of the customer’s hardware problem. The Company’s automotive product has a long development cycle that may require many iterations and a number of years and delays before it is accepted by the customer’s OEM client. However, the Company still believes that, once fully developed and if approved, the product will generate strong order volume with a long product cycle that is typically at least 10 years for each car model.
Joint Product Development Agreements with OPT Corporation
On May 2, 2011, Empower announced the signing of two joint product development agreements with OPT Corporation (OPT) of Nagano-Ken, Japan (http://www.optnagano.co.jp/). Subsequent to the announcement, the parties could not come to agreement on financial terms to share the product development costs and, as a result, the parties mutually agreed to cancel the agreements.
360 degree cameras are starting to garner interest in the automotive, security and military imaging industries. The Company may revisit the relationship with OPT once Empower and/or OPT have the financing in place to jointly fund the development of the 360 degree camera.
Empower IFC Proprietary Media Player
On February 23, 2011, the Company announced that it had shipped the first customized, production ready Empower media player module to Inflight Canada, Inc. (IFC) for final product assembly and certification. Subsequently, there were disputes with IFC over the additional cost to complete the product development and obtain certification. As a result, the customer and the Company mutually agreed to terminate the development agreement. No further product will be shipped to IFC until a new agreement is in place and the additional cost issue is resolved. There is no assurance such a new agreement and acceptable financial terms will ever be resolved by the two parties. The Company will continue to pursue other ODM (original designed manufacturer) customers to adopt this fully developed media player into their respective product lines as and when such opportunities arise.
Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
This news release includes forward-looking information within the meaning of applicable securities laws. All statements included in this news release that are not historical facts are forward looking statements, including statements regarding management’s plans for the Company’s business and anticipated future performance of the Company. Such statements are based on management’s current estimates, assumptions and projections using available information. These statements are not guarantees of the Company’s future performance and are subject to risk uncertainties and other important factors, which could cause the Company’s actual performance to be different from that projected. Factors that could cause actual results to differ materially from these forward- looking statements include those risks set out in the Company’s public documents filed on SEDAR at www.sedar.com. Although the Company believes that the assumptions and factors used in preparing the forward-looking statements are reasonable, undue reliance should not be placed on these statements, which only apply as of the date of this news release, and no assurance can be given that such events will occur in the disclosed time frames or at all. Except where required by law, the Company disclaims any intention or obligation to update or revise any forward-looking statement, whether as a result of new information, future events or otherwise.
About Empower Technologies™
Founded in 2000, Empower Technologies (TSX.V: EPT) has transformed from an embedded technology company to a full-fledged innovative technology, products and services and manufacturing company. Empower Technologies as a group caters to security and surveillance, military, automotive and transportation, healthcare, industrial control and consumer electronics industries. Under the Empower Group, the Company has three operating divisions – Empower Embedded Engineering, Empower Imaging Laboratories and Empower Defense Systems. For more information, please visit www.empowertechnologies.com.
Empower’s brands are “LEOs®”, Linux-based embedded operating systems, “BullsEye”, Real-Time Video Stabilizer, “PowerPlay™”, smart consumer electronics.
More Information on Empower Technologies: www.empowertechnologies.com
Chairman, President and CEO
Empower Technologies Corporation
# 130-3751 Shell Road
Airport Executive Park
Richmond, BC, Canada V6X 2W2
Empower Technologies, LEOs, PowerPlay and BullsEye are the trademarks of Empower Technologies, Inc. All other brands are trademarks of their respective owners.