MONTVALE, N.J., June 18, 2015 /PRNewswire/ -- Micronet Enertec Technologies, Inc. (NASDAQCM: MICT) announced today that its Mobile Resource Management (MRM) subsidiary Micronet executed a binding Memorandum Of Understanding (MOU) to be the exclusive supplier of rugged tablets and other telematics equipment to a leading MRM solution provider. The exclusivity arrangement pursuant to the MOU is for the later of two years or the delivery by Micronet to the customer of 20,000 units of Micronet's All In One A317 rugged tablet and a new Android-based On Board Computer. The parties agreed to use best efforts to enter into a definitive supply and purchase agreement, which will replace the MOU, by July 15, 2015. As part of the MOU, the customer agreed to place an initial purchase order for 4,000 units, valued at a minimum price of $950,000, which will be delivered by Micronet by the end of 2015. Based on inputs from the customer, management estimates that the potential value of this engagement may reach $4.7M.
The customer focuses on driver safety, efficiency and compliance, providing a comprehensive suite of Fleet Management solutions including Electronic Logging Devices (ELD) and Hours of Service (HOS), driver coaching, fuel reports and more for local fleets and heavy duty trucks and Equipment.
"We are very pleased to continue our momentum and sign this additional long term agreement with a new customer supporting new and sophisticated applications. This follows the previously announced agreement to supply our solution for installment in yellow busses servicing student transportation. Our All In One tablet is becoming an industry leader thanks to its unique features and flexible architecture. We are in different stages of discussions with more service providers that are adapting their applications and services to use our Tablets and solutions. We recognize and are preparing ourselves for the opportunity of the expected ELD mandate (expected in September 30, 2015) that should create an approximate 1.8 million unit opportunity within two years," said Shai Lustgarten, Micronet Ltd Chief Executive Officer.
About Micronet Enertec Technologies, Inc.
Micronet Enertec Technologies, Inc. (NASDAQCM: MICT) operates through two primary companies, Enertec Systems 2001 Ltd its wholly-owned subsidiary, and Micronet Ltd , in which it has a controlling interest. Micronet operates in the growing commercial MRM market, mainly in the United States. Micronet designs, develops, manufactures and sells rugged mobile computing devices that provide fleet operators and field workforces with computing solutions in challenging work environments. Enertec operates in the Defense and Aerospace markets and designs, develops, manufactures and supplies various customized military computer-based systems for missile defense systems, command and control and others. The Company's products, solutions and services are designed to perform in severe environments and battlefield conditions. For more information, please visit: www.micronet-enertec.com, the content of which is not incorporated by reference into this press release.
Forward-looking Statement
This press release contains express or implied forward-looking statements within the Private Securities Litigation Reform Act of 1995 and other U.S. Federal securities laws. These forward-looking statements include, but are not limited to, those statements regarding the expected receipt of purchase order for 4,000 units, the estimated potential value of this engagement, or when we discuss future opportunities, including the expected ELD mandate that should create an approximate 1.8 million unit opportunity within two years. Such forward-looking statements and their implications involve known and unknown risks, uncertainties and other factors that may cause actual results or performance to differ materially from those projected. The forward-looking statements contained in this press release are subject to other risks and uncertainties, including those discussed in the "Risk Factors" section and elsewhere in the Company's annual report on Form 10-K for the year ended December 31, 2014 and in subsequent filings with the Securities and Exchange Commission. Except as otherwise required by law, the Company is under no obligation to (and expressly disclaims any such obligation to) update or alter its forward-looking statements whether as a result of new information, future events or otherwise.
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SOURCE Micronet Enertec Technologies, Inc.
