Altech wins SAPS tender in excess of R500 Million

Altech wins SAPS tender in excess of R500 Million:

 Altech subsidiary, Alcom Systems, has been awarded the South African Police Service tender for the supply, delivery, installation, commissioning and testing of a complete Digital Terrestrial Trunked Radio (TETRA) communications network system for Gauteng. The contract, the largest radio communications contract ever awarded on the African continent, is valued in excess of R500 million and will be allocated over the three year period of the roll-out.
 

Altech is a leading JSE Securities Exchange telecommunications, multi-media and information technology group, while its subsidiary, Alcom Systems, recently re-named Alcom Matomo, has a 30 year track record of providing sophisticated integrated communications Motorola, a worldwide leader in the field of complex public safety radio systems.

Last year the Altech group's 100 percent-owned subsidiary, Alcom Systems, concluded a significant black empowerment deal which involved the sale of 30 percent of its business to the Matomo ICT Group to form Alcom Matomo.

In a statement released in Johannesburg today the CEO of Altech, Craig Venter, said he applauded the South African Police Service (SAPS) and therefore the government's decision to support a local company, as well as a "black empowered" company. "The creation of employment, the development of skills and the promotion of black empowerment will certainly benefit the overall South African economy," he said.

However, in addition to the above, he stated that Alcom Matomo would never have been awarded the contract as a local company had it not proved within the tender process that its sophisticated technologies and capabilities were of the very best global standards.

"In awarding this tender to Alcom Matomo government has reinforced its commitment to South African business and has sent yet another clear message that local businesses should indeed fully embrace and support its empowerment imperatives," said Venter.

He said he was confident that Alcom Matomo would fully meet the highest of standards required by the contract. "The company recently successfully installed a TETRA system for the City of Cape Town. This multi-million Rand project was the first TETRA public safety system in Africa."

Venter said the Motorola solution was also currently being deployed in many countries, including a United Kingdom-wide system for the British police. "Further proof of the technological excellence of this communications solution is that Motorola was recently awarded the contract for the provision of a TETRA system for the 2004 Olympic Games being held in Athens," he said.

"It's my belief that a single integrated communications system, such as the digital TETRA system, is an imperative for all of South Africa's emergency services," said Venter. "The ability to communicate between the police, fire, ambulance and hospital services is critical in times of major emergencies and disasters. I believe this was aptly proved in the United Sates during the September 11 disaster when all emergency services and rescue operations were co-ordinated by means of a single communications system. I believe that if this had not been the case, many more lives would
have been lost."

The Executive Chairman of the Matomo Group, which has the 30 percent stake in Alcom Matomo, Thozamile Botha, said the contract was the first of hopefully many more for the partnership. "This was the second major South African contract awarded for this advanced digital communications technology," said Botha, "and bodes well for a future where possibly only one integrated communications system will be deployed to uplift emergency service provision throughout South Africa." He said the standardisation of private radio communication technology, using TETRA, was critical to the future success of co-ordinated emergency services and community safety throughout South Africa.

Botha added that he had always had the greatest of confidence in Alcom Matomo's high level of engineering and integration strengths and that he was extremely proud to be sharing in such a major contract together with the Altech group.

Ends.

For additional information contact:
Ken Slade
Altech Media and Investor Relations Liaison Office

Tel: 011-715-9000

Cell:082-895-1310