FT. LAUDERDALE, Fla., Jan. 23 /PRNewswire-FirstCall/ -- InkSure Technologies Inc. (BULLETIN BOARD: INKS) , a leading provider of covert machine-readable security solutions ("CMRT") for the detection of counterfeiting, fraud and diversion, today reported upon its activities involving global market opportunities created by the widespread counterfeiting of tax stamps and marks.
As previously announced, during the fourth quarter of 2006 InkSure shipped the largest equipment order in its corporate history. The international order involved the utilization of InkSure's covert security solutions in a project associated with the application of secure tax marks to hundreds of millions of individual product containers in order to prevent the loss of government and manufacturer revenues due to the counterfeiting activities. In addition to sales related to the shipment of the Company's SignaSure(TM) electro-optic readers, the contract should generate recurring revenues from the consumption of encoded security ink in 2007 and future years.
"The counterfeiting of government-issued tax stamps and marks that are attached to tobacco, wine, beer, liquor and export products has created one of the largest potential market opportunities for our covert security machine-readable technology," stated Elie Housman, Chief Executive Officer of InkSure Technologies Inc. "Governments throughout the world suffer huge revenue losses each year due to these counterfeiting activities, and we are actively involved in negotiations involving tax stamp contracts in several major European countries. We were hopeful that one such contract might materialize before the end of 2006, but this did not happen. This in no way diminishes our convictions that the tax stamp market represents a major opportunity for InkSure."
During 2006, the Company and its partner, MTM Holographic, submitted a bid involving a tax stamp project in Turkey. In accordance with the bid requirements, InkSure's covert security technology was to be incorporated into a paper "banderol" tax stamp utilizing a number of overt and covert security features and applied to tobacco, liquor and beer products. The bids were submitted in December, and the Company subsequently learned that a lower bid was submitted by a competitor. As of the current date, the Turkish Ministry of Finance has yet to announce the winner of the contract.
"While InkSure was not the low bidder on the Turkish contract, we believe that our security is unequalled by any other bidder, and we remain confident that additional tax stamp/mark contracts will be awarded to our Company during 2007," noted Housman. "Our security solutions, which are virtually impossible to 'reverse engineer,' invisible to the naked eye, and provide a very high degree of security, accuracy and customization, are ideal for tax stamp applications, and we are confident that such markets will play an important role in InkSure's long-term success."
About InkSure Technologies Inc.
InkSure Technologies Inc., with its corporate headquarters in Ft. Lauderdale, Florida and its research and development center in Science Park, Rehovot, Israel, specializes in comprehensive, covert security solutions designed to protect high profile brands and documents of value from counterfeiting, fraud and diversion. The Company's sales and marketing activities target a number of market opportunities, including financial, pharmaceutical, branded products, transportation, and government/institutional, on a global scale. The Company's R&D activities include the development of "chipless" RFID technology for affordable item-level secure logistics and track-and-trace applications.
The Company's common stock is listed on the OTC Bulletin Board under the symbol "INKS". Additional information on the Company is available on its website at http://www.inksure.com/.
This press release contains certain forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Act of 1934, as amended, which are intended to be covered by the safe harbors created thereby. Investors are cautioned that all forward-looking statements involve risks and uncertainty. Although InkSure (the "Company") believes that the assumptions underlying the forward-looking statements contained herein are reasonable, any of the assumptions could be inaccurate, and therefore, there can be no assurance that the forward-looking statements included in this press release will prove to be accurate. Important factors that could cause actual results to differ materially from the forward-looking statements include the Company's need to obtain substantial additional capital (through financings or otherwise) to fund its operations, the progress of development, government and regulatory approvals and licensing/commercialization of the Company's technologies, and other factors noted in the Company's periodic report filings with the Securities and Exchange Commission. In light of the significant uncertainties inherent in the forward-looking statements included herein, the inclusion of such information should not be regarded as a representation by the Company or any other person that the objectives and plans of the Company will be achieved. By making these forward-looking statements, the Company undertakes no obligation to update these statements for revisions or changes after the date of this release.
For further information, please contact:
R. James Assaf, CEO, U.S. Operations at +1-954-772-8507 or via e-mail at
RJ Falkner & Company, Inc., Investor Relations Counsel at +1-800-377-9893 or
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