• Deploys Intellectual Assets Management (“IAM”) as a strategic business thrust
  • Will use valuation to springboard overseas expansion and venture into product licensing

Singapore, 5th Aug 2004 – Stratech Systems Limited ("Stratech") announces today that the intellectual assets of two of its core competencies, Computer Vision and intelligent Transport Systems, have been independently valued at more than S$78 million each by PricewaterhouseCoopers (“PwC”) as part of efforts by the Intellectual Property Office of Singapore (“iPOS”) to promote intellectual asset management of homegrown companies.

The homegrown Singapore Exchange Main Board-listed Stratech announces the valuation by PwC, after completing the key phases of the Intellectual Asset Management exercise supported by International Enterprise Singapore (“IE Singapore”) under iPOS’s national IAM Framework SCOPE IP, or "Strategies for Creation, Ownership, Protection and Exploitation of Intellectual Property”.

The international accounting firm said that the valuation was arrived at after assessing the pattern of adoption of the technology life cycle of each product and after assigning probabilities of the achievement of contracts as represented by the management to the free cash flows.

Stratech, an emerging world-class Advanced Technology and e-Systems developer, is the first company to have come on board SCOPE IP which was launched in September 2003 as an initiative to help companies adopt best practices in IAM so that they may effectively compete in the global marketplace. It helps companies identify and categorise the IP it owns, and assess the company's ability to manage the risk involved.

“This report is a strong reflection of the vast store of intangible value that Stratech has built up from intensive R&D and product development over the years. Stratech is constantly evolving from a project-focus, to not only a product focus, but towards an eventual IP licensing business model, in order to maximize the value of our IP. This report also underscores the need to implement the company’s strategy to tap the overseas market so as to build a strong and sustainable growth in order to “monetise” our intellectual assets,” said Dr. David K.M. Chew , Executive Chairman of Stratech.

“Stratech has always regarded intellectual asset management as a key business process. Our participation in SCOPE IP stems from our belief that it is important to manage our intellectual assets with the best practices in order to exploit our intellectual assets globally,” he said.

Since its inception, Stratech has placed great emphasis on developing proprietary technology and owning key patents in the technological field. The organisation is now ready to expand globally in order to sustain growth and tap new avenues of business such as technology licensing.

Speaking on the SCOPE IP initiative, Ms. Liew Woon Yin, Director-General for iPOS, said: “Companies today compete on their ability to create innovative products and services and gain market share through effective IP strategies. They need a holistic approach to harvest the full value of their intellectual property. This is why we developed SCOPE IP. We are happy that Stratech Systems has come forward to beta test SCOPE IP. We understand that the framework has helped in shaping Stratech’s globalization strategy. Going forward, we hope that more companies will adopt the SCOPE IP framework and put in place a robust IP management system for their organisations.”

The valuations are subject to, among others, the following:
  1. The valuations are based on potential market opportunities over time and other factors. The company cannot guarantee that it will secure businesses equivalent to such potential opportunities.
  2. As the valuations will not be reflected in the company’s financial statements, there will be no material impact on the company’s income statement and balance sheet.
  3. Modern technology is changing rapidly due to increasing new discoveries. As a result, new competitive technologies and applications are continually being introduced in the markets. This may negate the competitive advantages of our patents, technologies, products and systems, and render them obsolete.
  4. The significance of this valuation will depend on overall future market acceptance. The company cannot warrant that the technology and application offered will be received by a willing buyer
  5. The performance of the company and the value of its intellectual assets depend on having the resources and fundings to continue product development and improvement.

About Stratech Systems Limited

Stratech Systems Limited ("Stratech") is an emerging world-class Advanced Technology and e-Systems developer. Stratech delivers large-scale real-time mission critical systems for Governments and Businesses in the Homeland Security / Defense, Transportation and e-Business / e-Government markets. Stratech brings together world-class expertise, software, intellectual assets and unique technology capabilities in the areas of Computer / Intelligent Vision, intelligent Transport Systems (iTS) and e-Systems to enable her customers to meet existing and future operational challenges, gain significant strategic advantage and seize new business opportunities. Stratech focuses on providing products and solutions to real-world challenges where traditional IT technologies are inadequate. Stratech's "Connected Reality" solutions exploit state-of-the-art Info-Comm Technologies that connect the Net and the real-world more effectively and transparently, thereby enabling customers to leverage on the power of the Net to solve difficult real-world challenges.

Formed in 1989, Stratech has established an impressive track recording serving customers in industries such as Government, Homeland Security, Defense, Transportation (land, air and sea), Aerospace, Healthcare and Financial Services. Stratech is recognised as a leader in innovation and technology, is extremely entrepreneurial, developing and implementing advanced technology solutions that achieve significant business transformation and competitive advantage for its customers.

Listed on the Main Board of the Singapore Exchange, Stratech is headquartered in Singapore and targets markets in Asia, the Middle East, Australia, Europe, North and South America.

For more information, please contact:

Gary Tan
Corporate Communications Division
Tel: +65 6799 6650
Fax: +65 6323 2177