Genesis Worldwide Poised to Fulfill Saudi Risin...

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[{"type":"text","content":"\n \n\nFOR: GENESIS WORLDWIDE INC.\n\nTSX, AIM SYMBOL: GWI\n\nAugust 18, 2008\n\nGenesis Worldwide Poised to Fulfill Saudi Rising Housing Demand\n\nEnters into Licensing Agreement to Open Three Light Steel Frame Manufacturing Plants\n\nMISSISSAUGA, ONTARIO--(Marketwire - Aug. 18, 2008) - Genesis Worldwide Inc. (\"Genesis\" or the\n\"Company\"), (TSX:GWI)(AIM:GWI), a leading provider of \"green\" structural building technology using\nlight gauge steel aimed at the residential, commercial and institutional building markets, is pleased\nto announce that, as stated in the Company's press release dated August 6, 2008, it has entered into a\nlicense and services agreement (the \"Agreement\") with Sawabeh International Group (\"Sawabeh\") of\nRiyadh, Saudi Arabia, a diversified technology and construction group of companies.\n\nThe Agreement calls for the construction of three light steel panel manufacturing facilities within\nthe Kingdom of Saudi Arabia (\"KSA\"). The first plant will be commissioned in Riyadh by July 2009, with\ntwo other plants to be built within the licensed territory in the KSA by July 2011 and July 2012,\nrespectively. Genesis will earn initial revenue of approximately US$2.2 million from licensing the\nGenesis technology, the sale of industrial equipment and hardware, and various training and consulting\nservices required for the commissioning of the first plant. Genesis will earn similar revenue from the\ncommissioning of each of the two additional plants, with revenue recognized at the time the plants are\ncommissioned. Genesis will also earn a minimum of US$3.5 million in royalty fees over the next five\nyears. Sawabeh will be the exclusive provider of Genesis' building systems in the Kingdoms of Saudi\nArabia and Bahrain, and will maintain exclusivity as long as annual minimum gross sales targets are\nachieved. The term of this Agreement is for a five-year period and will automatically renew for an\nadditional ten years.\n\nPart of the backdrop of this announcement is the strategic plan developed by the government of Saudi\nArabia to reinvest in its economy by using its budgetary surplus-the result of record high oil prices-\nin the development of new 'economic cities'. Through the development of these 'cities', the Saudi\neconomy will continue to be integrated into the world economy. The goal, which has gen...

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