SEPTEMBER 07, 2009

ERICTEL increases share capital through acquisition of 75 percent of OWASYS.

As a result of this capital increase, Erictel will reinforce its bid for and involvement in the new telecommunication’s project, whilst simultaneously boosting the business continuity of Owasys Biscayan Company.

Following the capital increase approved by the Board of Directors on 21st July 2009, Erictel increased its share capital by a nominal amount of Euro 350,000, which represents 75 percent of the share capital of Owasys.

ERICTEL will not only provide sufficient liquidity to Owasys but it will also consolidate the company’s current business plan as well as define its future strategic procedures.

With a strong commercial presence in the Latin American market, Erictel will now launch Owasys products in that continent.

Owasys is already working on new products for their launch next term this year and by early 2010; these will include a device for residencial operation in cordless telephone systems and another device for telemetry and telecontrol.

After the acquisition in June 2009 of 60 per cent of the share capital of Owasys, a month later, Erictel has already acquired 75 percent of the shares of the Biscayan Company.

Owasys, whose share capital, to date, is in the region of a million euros, specializes in the development and manufacture of hardware and software solutions for the design of all those cordless products that serve the wireless communication industry.

Whilst meeting the need for any such products in the worldwide market, Owasys caters to those specific market niches which large corporations may not or do not wish to approach.

This capital increase will mean a larger direct involvement of Erictel in the strategic procedures of Owasys. Erictel is eager to tackle new entrepreneurial endeavours:

• Investment in R & D with special focus on the high quality of the design and manufacture of products entirely developed by Owasys, through avant-garde technology development for wireless communications.
• Complete Guidance and integral Customer Service: product, implementation, start-up and installation/ after-sales support.
• The launch into the Latin American market of Owasys products by Erictel, prior agreement with the corresponding operators.
• The launch of new products by the end of this year both for residential and industrial operation.

Under the current crisis, Owasys has eventually managed to overcome the financial difficulties that it had been dragging out since 2005, and which had put the company’s survival at risk.

“The merger with Erictel and its announcement to the Customer Base have meant our company’s economic recovery, with a subsequent important increase in our order inflow.” says Owasys Administrator and Managing Director, Javier Larrucea.

For furthe rinformation: maite.ruffo@owasys.com