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NeoMedia Micro Paint Signs Distribution Agreement for Products and Systems With Buying Consortium for New Car Franchised Dealers in Western Canada

Published on 2004-08-05. Author : SpecialChem


FT. MYERS, FL -- NeoMedia Technologies, Inc. (OTC BB: NEOM), said that its Micro Paint Repair Systems business unit has signed a distribution agreement with MDA Co-Auto Ltd., the largest buying consortium for new car franchised dealers in Western Canada.

The agreement, which runs through 2006, provides exclusive rights to MDA (Motor Dealer's Association) Co-Auto, and would generate a minimum of $2 million to NeoMedia if the minimum sales target is achieved. Based in Edmonton, MDA Co-Auto has 1,050 member dealers in British Columbia, Alberta, Saskatchewan, Manitoba and the Yukon, who are franchised dealers for virtually all cars, including Ford®, General Motors®, Chrysler®, Honda®, Toyota®, BMW®, Volkswagen® and Audi®.

'Targeting the Worldwide Auto Aftermarket'

"NeoMedia Micro Paint is targeting the worldwide auto aftermarket," said Art Gilfus, the company's vice president of Global Sales. "Here, for example, MDA Co-Auto will private-label our products and system for sale to its member dealers, who should then be able to quickly and efficiently repair paint on new cars damaged in transport, trade in or leased vehicles and cars brought in by customers.

"NeoMedia is also actively marketing to stand-alone body and repair shops, auto glass specialists, and entrepreneurially-driven businesses which want to add to or create a new profit center," he said.

This is the second major distribution agreement for NeoMedia Micro Paint in recent months. In June it took a major step toward worldwide expansion by contracting with Micro Paint Systems (Australasia) Limited of New Zealand to be its exclusive distribution for products and systems there and in Australia. Contingent on minimum sales targets being met, that agreement could produce approximately $23 million in revenue to NeoMedia over the next five years.

New Paint System Can Boost Dealer Profits

Mike Reid, president of MDA Co-Auto, said his group "does everything we can to help our member dealers get a handle on costs, and, when possible, create new profits. That's where NeoMedia Micro Paint Repair Systems can really help. Now member dealers should be able to grow the repair side of their businesses," he said. "Micro paint repair can help them retain existing customers while gaining incremental revenues from new customers who bring their cars to the dealerships."

While only about one-third of MDA Co-Auto's member dealers currently have body and repair shows, Reid said that all 1,050 have service areas. "Because NeoMedia's Micro Paint Repair System does not require special drying or baking areas and is environmentally safe," said Reid, "these dealers can start offering micro paint repair as soon as their personnel are trained."

Reid said MDA Co-Auto works with similar member dealer-owned buying consortiums in Canada and the U.S. and that "we all learn from one another. As we roll-out in September, we know they'll be watching our progress carefully on behalf of their members," he said.

Repairs in Less Than an Hour

The proprietary NeoMedia Micro Paint Repair System uses a chemical adhesion rather than old-fashioned mechanical adhesion, and completes undetectable repairs of scratches, scrapes and blemishes on vehicles in a fraction of the traditional time . . . usually less than an hour. "This incredibly quick turnaround lets shops work on many more cars a day," said Gilfus. "In MDA Co-Auto's case, dealers should be able to show increases in margins and profits while satisfied customers can drive away in their perfectly-repaired cars rather than lose use of them for one, two or even three days."

With the NeoMedia System, the area to be repaired is isolated, without extensive and time-consuming masking or costly removal of panels or parts, much like arthroscopic surgery, which allows repair of injuries to humans in a far-less-invasive manner. Scratches down to bare metal, oxidized paint - even high metallic, pearl and tri-coat finishes - can all be corrected with NeoMedia's products and process, which employs proprietary technology and safe materials, totally free from harmful isocyanates.

About NeoMedia Technologies, Inc.

NeoMedia Technologies, Inc., is a developer and international marketer of software and patented technologies which link products, print, and physical objects directly to targeted online data, with expertise in homeland security and e-authentication applications. NeoMedia markets PaperClick® and PaperClick for Cell/Mobile Phones™, which link physical information and objects to the Internet, and its Systems Integration Group specializes in providing expert-based IT consulting, hardware, and software solutions.

About NeoMedia Micro Paint Repair, Inc.
NeoMedia Micro Paint Repair, Inc., is a wholly-owned subsidiary of NeoMedia Technologies, Inc. Formerly known as CSI International Inc. (www.csi-intl.com), the company specializes in products and services for the worldwide micro paint repair industry, including a system and processes utilizing proprietary technology.

Source: NeoMedia

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