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NavStar Technologies, Inc.: NavStar Technologies, Inc. Narrows Search for Software Company Acquisition

^{Published on 2009-07-21 06:32:55, Last Modified on 2009-07-21 06:33:02 - Market Wire}
 

ANAHEIM, CA--(Marketwire - July 21, 2009) - NavStar Technologies, Inc. (PINKSHEETS: [ NVSR ]), a multinational firm focused on developing and commercializing asset tracking and monitoring devices for vehicles and high value cargo with specific geographic focus in Latin America, today announces that their efforts to acquire an annuity-based services/software company has been narrowed down to two companies.

N. Douglas Pritt, Chairman and CEO, confirmed that negotiations are underway with the final two candidates and that a Letter of Intent will be announced in the next two weeks.

NavStar also re-affirmed guidance regarding its expected financial performance over the next 5 years. The successful achievement of these financial objectives assumes the company's procurement of up to $2.0 million of funding in the 3rd quarter of this year and the completion of the services/software company. The summary financial income statement follows:

 Year ($M) 2009 2010 2011 2012 2013 --------- ---- ---- ---- ---- ---- Revenue 2.2 17.2 26.4 35.3 46.9 COG 1.2 9.3 15.1 20.5 27.1 Gross Profit 1.0 7.9 11.3 14.8 19.8 SG&A 1.5 3.7 5.3 6.9 8.6 EBITDA (.5) 4.2 6.0 7.9 11.3 

Based on the additional service revenue which will accrete to the base financial model, this acquisition should allow NavStar to galvanize additive revenue which will reoccur year to year based on the deployment of the asset tracking devices through customers in Latin America. Several Latin American customers/governments have already indicated under binding Letters of Intent a desire to acquire the company's products.

N. Douglas Pritt, Chairman and CEO, said, "In addition to the reoccurring monthly service revenue which we will realized from this acquisition, we will also be in a position to respond quickly to customers' request for quotes (RFQ) and offer customized solutions that competitors will have difficulty matching."

For further information about NavStar Technologies Inc. visit the company's website at [ www.navstarinc.com ].

FORWARD-LOOKING STATEMENT

This press release contains forward-looking statements within the meaning of U.S. federal securities laws, that involve known and unknown risks and uncertainties that may cause actual results to differ materially from those expressed or implied in this press release.

About NavStar Technologies, Inc.

NavStar is focused on the creation of products and services that provide tracking and monitoring of vehicles and high value cargo, equipment, and other valuable and personal assets.