TORONTO, Aug. 10 /CNW/ -- ComnetiX(TM) Inc (Toronto: CXI), a leading provider of biometric identification and authentication solutions across North America, announced that it has closed its acquisition of privately held, Carrollton, GA-based Paragon Total Solutions Inc, a well-established provider of biometric technology serving law-enforcement and government agencies with a significant customer base throughout the southeastern United States. Andy Horton, its former Chief Executive Officer, has joined ComnetiX as the Company's Vice President of Sales, Southeastern Region. ComnetiX Chief Executive Officer Jim Scullion said, "The acquisition of Paragon is the latest manifestation of our vision to become the dominant player in the biometric technology arena, and to change the status quo with our software-centric solutions. With this acquisition we are expanding our presence in a large and whole new region of the US. We are glad to have Andy on board and look forward to leveraging his extensive experience and broad base of contacts to raise awareness and the benefits of ComnetiX, our products and services within the Southeast." As previously announced, the purchase price of the acquisition was US $4.45 million, of which US $1.5 million was paid in cash, certain liabilities were assumed, and the balance paid by way of issuance of approximately 800,000 common shares of ComnetiX. The issued common shares are subject to contractual restrictions on resale for a period of at least one year, with a majority of such shares subject to a contractual escrow. Results for the fourth fiscal quarter ending August 31, 2005, will reflect combined results from the date of closing until the quarter end. The first full quarter of combined results will be reported during ComnetiX's first fiscal quarter ending November 30, 2005. About ComnetiX(TM) Inc ComnetiX(TM) Inc provides secure identification and authentication solutions to both the public and private sectors throughout North America. ComnetiX offers multimode biometric identification solutions for use in areas such as applicant screening, financial services, health care, transportation, airlines and airports, casinos and gaming, and energy and utilities. Clients include American Airlines, Lehman Brothers, New York City Health and Hospital Corporation, New York State Division of Criminal Justice Services, Toronto Police Services Board, Boston Police Department and the Royal Canadian Mounted Police. ComnetiX is also Canada's premier applicant fingerprinting services company, facilitating tens of thousands of criminal background checks each year through its chain of ten offices across Canada. ComnetiX has recently launched over 40 applicant fingerprinting services sites in the US, servicing a wide variety of applicant types, including HazMat endorsees, bankers and brokers, nurses, teachers, security guards, and volunteers. Statements made in this news release that relate to future plans, events or performances are forward-looking statements. Any statement in this release containing words such as "believes," "plans," "expects" or "intends" and other statements that are not historical facts are forward-looking, and these statements involve risks and uncertainties and are based on current expectations. Consequently, actual results could differ materially from the expectations expressed in these forward-looking statements. For further information Investor Relations: Jesse Deal (877) 691-8087 investor.relations@ComnetiX.com Tim Zahavich ComnetiX Inc (905) 829-9988 ext 206 investor.relations@ComnetiX.com Media Relations: Michael Corcoran (416) 529-5709 mcorcoran@hartwellgroup.ca
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