C2SAT (NGM-stock exchange) and the Company’s board of directors has decided to establish a subsidiary, C2SAT Asia Pacific Pte Ltd, based in Singapore, for more focus on the fast growing Southeast Asian markets — the growth of installed VSATs in the region was 30 percent in 2007 and accelerating growth is forecast for the coming years. C2SAT Asia Pacific (Pte) Ltd. will first and foremost focus on establishing a network of strong, non-exclusive local distributors and service- and installation partners. C2SAT’s new agreements with Can Traders and Services (Pte) Ltd., Singapore, and Consilium Singapore (Pte) Ltd., Singapore, two established and recognized service organizations focused on the maritime sector with large regional coverage, are of critical importance to the company. Accordingly, C2SATs clients will have access to about 20 qualified service technicians. Both Can Traders and Services and Consilium Singapore will also, on a non-exclusive basis, market and sell C2SAT products.
C2SAT has also secured a continued close cooperation with PT AJN Solusindo in Indonesia, to which C2SAT has, previously through Maritime Communications Pty Ltd., delivered six C-band antenna systems. C2SAT has decided to terminate all corporation with Maritime Communication Pty Ltd., the exclusive distributor of C2SAT products since 2007 on the Southeast Asian markets together with Australia and New Zeeland, as Maritime Communications Pty Ltd. has not fulfilled its commitments. Further deliveries of antennas will be made directly to PT AJN Solusindo and are expected to take place during the autumn of 2009.
C2SAT has also entered a Memorandum of Understanding with Fong´s Engineering and Manufacturing (Pte) Ltd., Singapore, a leading high precision engineering company in Singapore, regarding the establishment of local production of C2SAT antennas. Local production in Singapore will enable C2SAT to offer shorter lead times and more cost effective distribution in Southeast Asia. Furthermore, significant cost advantages in production are expected to be reached. Production in Singapore is forecast to be in place by latest first quarter 2010.
