Del Norte expands Hemisphere GPS' product offerings, market share, global reach Toronto Stock Exchange Symbol: CSY CALGARY, Jan. 3 /CNW/ - CSI Wireless Inc., a designer and manufacturer of advanced wireless and GPS products used in more than 50 countries, today announced that its Hemisphere GPS division is acquiring Del Norte Technology Inc. of Euless, Texas, for US$940,000. The transaction is effective January 1, 2006, and is expected to close prior to January 31, 2006. With 2005 sales of approximately US$1.7M, Del Norte(R) has more than 20 years experience designing and manufacturing specialized GPS products for the aerial guidance market -- primarily crop dusting or aerial spraying. It has been achieving annual sales growth of between 15% and 20% in recent years. Hemisphere GPS is already a global leader in aerial guidance for agriculture, through its popular Satloc(R) brand that includes AirStar(TM), LiteStar(TM) and M3(TM) products. Hemisphere will offer its Satloc products and the Del Norte products -- including DGPS Flying Flagman(R) FliteTrac(TM), IntelliFlow(R) and Spray Off(TM) -- through a new division called Hemisphere Air. "Combining the capabilities of the Satloc and the Del Norte brands will enable us to offer a broad range of products across almost all product application levels and geographic regions," said Rick Heiniger, President of Hemisphere GPS. "Our primary goal is to serve the growing aerial application industry with very focused effort. We will also be the worldwide market leader -- accounting for about three-quarters of all GPS aerial guidance sales." Satloc has a strong customer base in North and South America, Africa and Australasia that will very effectively complement Del Norte's customer base in Central America, Australasia and Africa. Satloc and Del Norte will also capitalize on each other's strong distribution networks, and achieve other cost-saving operational efficiencies. "Hemisphere GPS is committed to the aerial guidance market, and our Del Norte acquisition underlines that fact," Mr. Heiniger said. "We plan to be an increasingly dominant player in this space. Combining our expertise in pilot guidance and situational awareness with Del Norte's expertise in aerial flow control systems and automation will help us succeed." Del Norte President Ron Spinek, who becomes Vice-President of Hemisphere GPS and General Manager of Hemisphere Air, added: "This transaction brings together two of the strongest teams in the industry. Combining our engineering resources and other product development strengths, while achieving important cost efficiencies, will mean added value to all Del Norte and Satloc customers." Hemisphere GPS is a technology leader in several specialized niche markets, including both aerial and ground-based agricultural applications. The company is intent on leveraging its leadership and underlying intellectual property to increase its dominance in existing GPS markets and in emerging GPS markets, including forest firefighting, pest control, data collection and environmental initiatives. "Being the best in the GPS precision agriculture market is very important to us," said Stephen Verhoeff, CSI's President and CEO. "The quality of our products, the growing demand they are generating, and our reputation in the marketplace, have made precision agriculture an important part of business for many years. Satloc and Del Norte are leaders in the aerial precision market, and combining our strengths will ensure that CSI and Hemisphere GPS remain leaders too." Transaction Overview Hemisphere GPS will purchase the Del Norte business and assets -- including working capital of approximately US$250,000 -- for US$940,000 in cash. Hemisphere GPS will assume control of Del Norte's leased facilities in Euless, Texas, and locate Hemisphere Air's headquarters there. The transaction is subject to certain conditions, including completion of formal documentation, final board approvals, regulatory approvals and there being no material adverse change in the business and affairs of Del Norte before the closing date. In the short-term, Del Norte and Satloc will operate in a business-as- usual fashion. Customers can expect no changes or disruptions in service or in their respective Del Norte, Satloc and Hemisphere GPS contacts. About Hemisphere GPS Hemisphere GPS is the world's largest after-market supplier of GPS products for use in Agricultural Guidance, and a global player in other rapidly growing GPS-aided sectors including Marine Guidance and GIS & Mapping. Owned by CSI Wireless Inc., Hemisphere's major house brands are Outback, Satloc, Crescent and CSI. Hemisphere is a leader in the design and development of GPS and differential GPS technology. About CSI Wireless CSI Wireless designs and manufactures innovative, cost-effective, wireless and GPS products for mobile and fixed applications in the agriculture, marine, automotive and other industries. CSI is a leader in several high-growth markets including Precision Guidance in Agriculture, Telematics and Desktop Cellular Telephones. The Company, through its Wireless and its Hemisphere GPS divisions, owns numerous patents and other intellectual property. CSI's common shares trade on The Toronto Stock Exchange under the trading symbol "CSY", with approximately 46 million outstanding. The company's head offices are in Calgary, Alberta, and it has major product development, sales and marketing facilities in California's Silicon Valley, Arizona, Kansas and now Texas. For more information about CSI, go to www.csi-wireless.com. The above disclosure contains certain forward-looking statements that involve substantial known and unknown risks and uncertainties. These forward-looking statements are subject to numerous risks and uncertainties, certain of which are beyond CSI Wireless' control, including: the impact of general economic conditions, industry conditions, increased competition, the lack of availability of qualified personnel or management, fluctuations in foreign exchange or interest rates, stock market volatility and market valuations of companies with respect to the announced transactions and the final valuations thereof, and obtaining required approvals of regulatory authorities. CSI Wireless' actual results, performance or achievement could differ materially from those expressed in, or implied by these forward-looking statements and, accordingly, no assurances can be given that any of the events anticipated by the forward-looking statements will transpire or occur, or if any of them do so, what benefits, including the amount of proceeds, CSI Wireless will derive therefrom.