WPCS Acquires Energize Electrical of Australia

WPCS International Incorporated (Nasdaq: WPCS), a leader in design-build engineering services for specialty communication systems and wireless infrastructure, has announced that it has completed the acquisition of 100% of Energize Electrical of Brisbane, Australia for approximately $1.7 million in cash at closing which can be adjusted upon the verification of any variance of a net tangible asset value of approximately $293,000 for Energize Electrical at closing.

Founded in 1992, Energize Electrical is an electrical contractor specializing in underground utilities, maintenance and low voltage applications including voice, data and video for commercial and building infrastructure companies. The company is now expanding its wireless deployment capabilities. Energize Electrical has built a solid reputation for quality workmanship and comprehensive electrical services for such clients as McDonalds, BSF Arkell Group and R.N. Bailey & Sons.

Historically profitable, Energize Electrical is projected to achieve approximately $2.4 million in revenue and $1.0 million in earnings before interest and taxes for their current fiscal year ending June 30, 2008. Over the past few years, gross margins have averaged approximately 45%. The transaction closed on April 4, 2008.

Richard MacKay, Managing Director of Energize Electrical, commented, "The Australian economy continues to expand and the market for our services remains strong. We believe that becoming part of WPCS will allow us the opportunity to achieve our next level of growth. In addition, with the support and training offered by WPCS, we can increase our focus in the wireless sector here in Australia. We are very pleased to be a part of WPCS and its superb global reputation for high level design-build engineering services."

Andrew Hidalgo, CEO of WPCS International Incorporated, commented, "WPCS continues its focus on expanding our international operations. We believe there is significant growth potential in Australia for our services and by adding an outstanding organization such as Energize Electrical we now have enhanced our engineering capacity and expanded our customer base. We will be assimilating our two recent Australian acquisitions to maximize operational efficiency and develop joint business opportunities."

WPCS is a design-build engineering company that focuses on the implementation requirements of wireless technology. The company serves the specialty communication systems and wireless infrastructure sectors and provides services that include site design, technology integration, electrical contracting, construction and project management for corporations, government entities and educational institutions worldwide.

Source: WPCS