PRESS RELEASES
IQ
Biometrix Signs Major Acquisition Pact; DC-Based, Fast-Growing
Network Storage Solutions is a Pioneer in $12 Billion Secured
Network Storage Market
FREMONT,
Calif. & CHANTILLY, Va, May 5, 2003
IQ Biometrix Inc. (OTCBB:IQBM) announced today that it has
entered into a letter of intent for the acquisition of Network
Storage Solutions (NSS), a leading developer and supplier
of network storage software and products for security and
other applications. NSS is based in Chantilly Virginia,
just outside of the Washington DC Beltway. The transaction,
which is expected to close this quarter, is subject to required
approvals and other closing conditions.
"This acquisition is expected to expand the company's
geographic presence and leverage its technology into new
markets," said Bill Scigliano, CEO and President of
IQ Biometrix. "In addition, it combines the strength
of the Network Storage Solutions brand, the breadth of our
product line and our global reach with NSS's technical excellence,
outstanding products and time-to-market."
IQB
will issue 12.5 million shares of its common stock to NSS
and options for 3.5 million shares of IQB common stock vesting
over 3 years to NSS management and staff.
"The
acquisition of NSS should provide several key elements to
help IQ Biometrix achieve continued development and succeed
as a major provider of facial composite, recognition and
tracking systems," said Scigliano. "First, NSS
is a fast-growing company with a high-quality customer base
of leading global companies and several government agencies,
which meets our goal of achieving geographic diversity.
Second, they offer a wide range of competitive products
with state-of-the-art, full-functioned technology that meets
the needs of our customer's storage requirements. The NSS
software, SPANStor, is the foundation to support Storage
Resource Management (SRM) and additional emerging requirements
for the storage marketplace."
"As
the two companies combine technologies, we expect to provide
the law enforcement and security industries with increased
digital storage capabilities that should further enhance
IQ Biometix's offering. Customers are expected to have the
ability to identify, communicate, store and distribute information
seamlessly," said Tom Makmann, President and CEO of
Network Storage Solutions. "The current market for
network storage is estimated at over $12 billion with the
mid-range considered the largest growth sector. The NSS
product offerings, with our SPANStor software as the foundation,
are positioned for increased growth based on its functionality,
flexibility, and performance. The technology supports multiple
industry requirements in addition to the IT sector such
as the security market of IQ Biometrix," concluded
Makmann.
"This
major transaction is expected to deliver several long-term
strategic benefits, continued growth in diversified markets,
and represent outstanding value for the stockholders of
IQ Biometrix: most importantly, it is also expected to be
accretive in fiscal 2003," said Scigliano. "We
expect to enter into other agreements in the near term that
will further expand our NAS business with the same type
of high returns for the company and its shareholders,"
Makmann added.
About
IQ Biometrics
IQ Biometrix,
Inc. (IQBM.OB) provides law enforcement and security technology
solutions for government and private industry.
IQ Biometrix,
an innovative California-based company is a leading provider
of facial composite technology for law enforcement agencies
in North America. FACES is currently used by thousands of
policing agencies worldwide, including the Central Intelligence
Agency and the Federal Bureau of Investigation.
IQB
is currently developing new applications based on this foundation
technology tailored to meet the needs of national, business
and personal security. Its solutions practice is focused
on integrating IQB and partner technologies to provide customized
responses to client needs. Further information about IQB
can be found at www.iqbiometrix.com.
About
Network Storage Solutions
Headquartered
in Chantilly, VA, Network Storage Solutions (NSS) designs,
develops and markets SPANStor, an award-winning Network
Attached Storage (NAS) operating system: a full line of
NAS/SAN gateways and storage appliances: and the Thunderbolt
storage system series. Its SPANStor V5 NAS software is built
on an open NetBSD kernal with a powerful Journaling File
System that was designed to operate on virtually any Intel-based
server platform and support virtually any storage backend.
Key features and functions include Snapshots, Replication,
Failover, Active Directory support, LDAP, Kerberos, ACLs,
IPv4, IPv6, CIFS, NFS. It is deployed on industry-standard
Intel hardware platforms supporting SCSI, FCAL, SAN Fabrics,
and iSCSI. Network Storage Solutions markets its products
through a channel of reseller and OEM partners. Additional
information about NSS can be found at www.nssolutions.com.
Safe
Harbor Statement
To the
extent that any of the statements contained herein are forward-looking,
such statements are based on current expectations that involve
a number of uncertainties and risks. Such uncertainties
and risks include, but are not limited to, growth in the
NAS market, market acceptance of products, the development
of new products, the enhancement of existing products, manufacturing
delays, dependence on principal customers, competitive pricing
pressures, product volume and mix, global economic conditions,
dependence on international operations, availability of
key components, timing of orders received, and introduction
of competitor products having technological and/or pricing
advantages. As a result, the Company's operating results
may fluctuate, especially when measured on a quarterly basis.
Actual results may differ materially from such expectations.
Investors are directed to consider other risks and uncertainties
in documents, including forms 8K and 10QSB, filed by the
company with the Securities and Exchange Commission, www.sec.gov.
SPANStor(TM),
Thunderbolt(TM), uStor(TM), NASengine(TM), and ProStor(TM)
are trademarks of Network Storage Solutions. Any other product,
trademark, company, or service names mentioned herein are
the property of their respective owners.
Contacts
IQ Biometrix
Media/Investor relations: Robert Schechter, 212/499-6809
Fax: 212/557-2397
E-mail: rschechter@iqbiometrix.com
or
Liviakis Financial Communications, Inc.
John Liviakis, 415/389-4670
Fax: 415/389-4694
Email: john_liviakis@sbcglobal.net
or
Network Storage Solutions
Tom Makmann, 510/608-4044
Fax: 510/608-4012
E-mail: tom.makmann@hammerstorage.com
or
K-Comm, Inc.
Sinan Kanatsiz, 714/854-0800
Fax: 714/854-0820
E-mail: sinan@kanatsiz.com
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