TUALATIN, Ore.--(BUSINESS WIRE)--CUI Global, Inc. (OTCBB: CUGI), a platform company dedicated to the acquisition, development, and commercialization of new, innovative technologies, today announced that it has entered into a three (3) year, exclusive distribution agreement with Orbital-UK for sales, marketing, distribution, and service of its Vergence™ GasPT2 gas metering device in the United Kingdom.
The agreement calls for sales of as many as 1,500 to 2,000 units and is valued from $30,000,000 to $40,000,000 over the three year term. The company expects to begin delivering product in the late First Quarter 2012. Orbital suggests that, conservatively, there are tens of thousands of natural gas metering sites worldwide and that, due to several factors, most will eventually require a faster, more accurate, more economical metering system. Those factors include:
- Diversity of supply, resulting in rapid changes in gas quality;
- New and non-conventional sources of natural gas, requiring additives to maintain combustion parameters; and,
- Pressure from governing bodies to ensure product safety and increased monitoring.
For its part, Orbital is one of the largest system integration providers in the UK industrial gas market. Orbital is a specialist gas engineering company, delivering integrated instrumentation and engineered solutions to the gas utilities, industrial process and environmental industries.
In addition to becoming exclusive distributors in the UK, Orbital has also agreed to package its patented VE-Probe Technology with the Vergence devices, producing a combined metering solution which will allow gas producers, transmitters, and consumers to receive accurate, in-pipeline gas quality analysis in less than five (5) seconds from gas sampling to final analysis. This compares with the more than 14 minute cycle time for current sampling/analysis systems. CUI Global will market both the VE-Probe Technology and the GasPT2 devices under its Vergence™ brand.
“This is our first distribution agreement for our Vergence product line and, coupled with our ability to package the Orbital VE-Probe Technology under our Vergence gas metering brand, will greatly enhance our ability to penetrate the natural gas industry in the UK and Europe,” explained CUI Global’s president & CEO, William Clough. “Having a partner with the status and reputation of Orbital confirms the dynamic nature of our technology. It will allow the company to rapidly produce, market, and deploy a unique, accurate solution to gas quality metering that is faster, simpler, and less expensive than anything currently available to the market.”
“We expect the relationship between CUI Global and Orbital to become a model by which we will deliver this exciting new technology to natural gas transporters, producers, and consumers in Europe, North America, and beyond,” concluded Clough.
Andrew Ridge, Director of Orbital Gas Systems Ltd. concurred that, “we at Orbital are very enthusiastic about this new relationship with CUI Global. The combination of our VE Probe Technology and the Vergence Gas Metering Device will provide the natural gas industry with a metering system without peer. We can provide economical, accurate gas quality analysis in a cycle time of less than 5 seconds, which is simply unavailable using any other currently available technology.”
“We look forward to a long and rewarding relationship between our two companies and these dynamic technologies,” concluded Ridge.
About CUI Global, Inc.
CUI Global is a publicly traded platform company dedicated to maximizing shareholder value through the acquisition and development of innovative companies and technologies. From its Vergence GasPT2 platform targeting the energy sector, to its subsidiary CUI Inc.'s industry leading digital power platform targeting the networking and telecom industries, CUI Global has built a diversified portfolio of industry leading technologies that touch many markets. As a publicly traded company, shareholders are able to participate in the opportunities, revenues, and profits generated by the products, technologies, and market channels of CUI Global and its subsidiaries. CUI Global prides itself on operating with the same level of integrity, respect, and philanthropic dedication that was put in place by CUI Inc.’s founder more than 20 years ago. It is these values that allow the company to make a difference in the lives of their customers, their community, their employees, and their investors. Recently, a move was made to merge and streamline resources with its subsidiary CUI Inc. in order to create a unified, international brand that now positions CUI Global for further strategic expansion.
For more information, please visit www.cuiglobal.com and www.cui.com.
About Orbital-UK
Orbital is a privately owned specialist gas control & instrumentation solutions provider. It has over the last 25 years, developed a portfolio of products, solutions, services and resource that offers the market a diverse range of control & instrumentation as well as bespoke engineering solutions to the gas utilities, power generation, emissions, manufacturing and automotive industries plus many others. Orbital has extensive facilities with the capability to build any number of large instrumentation houses as well as small control system manufacturing and outside build areas capable of receiving multiples of the largest of fiscal metering skids. Orbital is one of the largest system integrators within the UK and can offer a complete project management service from conceptual design through design approval, project engineering, procurement activities, production delivery, testing and commissioning, site survey, civil works, site installation, handover as well as after sales service and training. It offers a 24/7 technical helpline and call out facility to many of its customers and it is accredited to BSEN ISO9001 and BSEN ISO14001 and Achilles UVDB – verify and operate in compliance with BS OHSAS 18001.
For more information, please visit www.orbital-uk.com.
Important Cautions Regarding Forward Looking Statements
This press release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. Such statements and the volume of sales and value related thereto as well as the timing and number of gas metering sites discussed above are estimates that are subject to risks and uncertainties that could cause actual results to vary materially from those projected above. The company may experience significant fluctuations in future operating results due to a number of economic, competitive, and other factors, including, among other things, our reliance on third-party manufacturers and suppliers, government agency budgetary and political constraints, new or increased competition, changes in market demand, and the performance or reliability of our Vergence GasPT2 product. These factors and others could cause operating results to vary significantly from those in prior periods, and those projected in forward-looking statements. Additional information with respect to these and other factors, which could materially affect the company and its operations, are included in certain forms the company has filed with the Securities and Exchange Commission.