YAHUD, Israel, December 24 /PRNewswire-FirstCall/ -- Magal Security Systems, Ltd. (NASDAQ GM: MAGS) , today announced that it has sold its U.S. based video monitoring business operated by Smart Interactive Systems Inc. to iVerify US, Inc. for $8.5 million. Magal expects to record a gain of approximately $2 million on the sale, which will be reflected in its 2007 results. The sale was made in furtherance of Magal's strategy to focus on its core business of perimeter security projects and products.
Mr. Izhar Dekel, CEO of Magal, said: "As part of our overall strategic vision and plan to focus our energies on our core perimeter security business, we decided to sell this non-core business. We intend to use the proceeds of the sale to support the expansion and growth of our core business."
About Magal Security Systems, Ltd.:
Magal Security Systems Ltd. (Magal) is engaged in the development, manufacturing and marketing of computerized security systems, which automatically detect, locate and identify the nature of unauthorized intrusions. The Company's products are currently used in more than 70 countries worldwide to protect national borders, airports, correctional facilities, nuclear power stations and other sensitive facilities from terrorism, theft and other threats. Magal trades under the symbol MAGS on the NASDAQ Global Market and on the Tel-Aviv Stock Exchange (TASE).
This press release contains forward-looking statements, which are subject to risks and uncertainties. Such statements are based on assumptions and expectations which may not be realized and are inherently subject to risks and uncertainties, many of which cannot be predicted with accuracy and some of which might not even be anticipated. Future events and actual results, financial and otherwise, may differ from the results discussed in the forward-looking statements. A number of these risks and other factors that might cause differences, some of which could be material, along with additional discussion of forward-looking statements, are set forth in the Company's Annual Report on Form 20-F filed with the Securities and Exchange Commission.
Contacts:
Company
Magal Security Systems, Ltd
RRaya Asher, CF
Tel: +972-3-5391444
Fax: +972-3-5366245
E-mail: magalssl@trendline.co.il
Investor Relations
G.K. Investor Relations
Ehud Helft/Kenny Green
Tel: +1-646-201-9246
E-mail: info@gkir.com
Magal Security Systems Ltd
