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May 2, 2012 /PRNewswire/ --
CUI Global, Inc. (NASDAQ: CUI), a platform company dedicated to the acquisition, development, and commercialization of new, innovative technologies, today announced it has signed a Memorandum of Understanding with The Belleau Wood Group (BWG) in
Dubai for distribution of its patented Vergence™ Natural Gas Metering Device in the Gulf Cooperation Council (GCC) region. Specifically, the agreement gives BWG distribution rights for sale of the devices in the
United Arab Emirates, the
Kingdom of Saudi Arabia,
Qatar, the Kingdom of
Kuwait, the Sultanate of
Oman, and the Republic of
The Agreement obligates BWG to purchase a "minimum initial order" of 100 units, valued at
$2,500,000 (based on MSRP), following the successful completion of a thirty (30) day test of one device at a site to be selected by BWG and CUI Global. In order to pass the test, the device must meet the +/-0.5% accuracy standard set forth in the American Gas Association (AGA) Section 5 Standard, a standard the device has met or exceeded in all previous testing.
CUI Global's president & CEO,
William Clough, commented, "This agreement is the first such agreement that obligates the distributor to issue purchase orders and purchase a minimum number of our GasPT2 units in order to test the devices. Previously, we had to provide the devices without such an obligation because of the new, unproven nature of the technology. Now, as a result of our successful testing in
Italy at Snam Rete; in
Poland with GazSystems; with Ofgem in the
United Kingdom; and with Gasunie in
The Netherlands, we are able to insist on confirmed purchase orders before we provide a test device."
Patrick F. Campos, BWG's CEO, stated, "BWG is very enthusiastic about this new relationship with CUI Global. We are convinced that this is the first of many agreements we will establish to market and sell this exciting new technology around the world. In fact, we are in the process of establishing a subsidiary company to be known as BWG-Blue Flame that will focus on distribution of the Vergence™ Technology in partnership with CUI Global. The natural gas market in the Gulf Region is extensive and the efficiencies and real-time monitoring offered by the Vergence GasPT2 device are unparalleled. We are confident that there will be great interest and significant sales of the device in the Gulf once it has been tested, which is why we are wiling to make this commitment to CUI Global and its team."
"This agreement and subsequent agreements with BWG and others will continue to prove the viability and value of the Vergence Technology, while significantly impacting our top and bottom lines," continued Clough.