Ultradata will acquire 18.9 percent of Talon, and 70 percent of a new U.S. company, jointly formed by Ultradata and Talon, which is dedicated to GPS applications. Talon is a major supplier to Ultradata of the GPS receivers used to link Travel*Star GPS navigational devices to the network of positioning satellites orbiting earth. The agreement also gives Ultradata options, exercisable until mid-1999, to acquire 100 percent of Talon Research Development, Ltd.

``We feel this will be a very positive relationship for both companies, and that this transaction is strategically significant for Ultradata and positions us for growth,'' said Monte Ross, Ultradata's president and chief executive officer.

David Biernbaum, Ultradata's chief operating officer, said: ``The relationship with Talon gives us an opportunity to obtain favorable costing on GPS receivers, which are the most significant cost factor in our GPS product. As an investment, it enables Ultradata to participate in the growth potential of Talon's marine electronics and GPS business. We believe that a lack of capital has constrained Talon's growth until now.''

In discussing the potential benefits of the transaction, Biernbaum noted: ``Establishing a U.S. operation specializing in GPS applications gives Talon access to the U.S. market, and enables us to participate in growth related to the emerging GPS industry. Talon has significant manufacturing and technological capabilities, while we have the working capital to enable them to address its backlog of approximately US$4 million, and to pursue new business with the knowledge that they will have the capital resources to fill new manufacturing orders.''

Biernbaum said Ultradata invested approximately $300,000 for the 18.9 percent stake in Talon, and that in addition, Ultradata anticipates making periodic secured loans to Talon to supply working capital as Talon receives purchase orders from U.S. companies. Biernbaum noted that following the transaction, Ultradata has more than $4.5 million in cash, no long-term debt, and a $2 million revolving line of credit.

Biernbaum said he anticipates that Talon, a privately-held company, will have revenues of approximately US$5 million for its fiscal year ending March 31, 1998. Talon has already taken complex technology and integrated it into numerous GPS applications, including marine electronics products such as GPS fish-finders and chart-plotters, two of several commercially proven uses for GPS.

``We welcome the opportunity to join with Ultradata to further address the exciting and emerging market for GPS applications,'' said Peter Maire, Talon's president. ``We now have direct access to U.S.-based customers, and also access to the working capital needed to fill existing and new orders.''

GPS UPDATE - SpaceDaily Special Report

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