RemoteMDx Separates from Operations Its Volu-Sol Subsidiary as it Continues to Grow Its Offender Tracking Business
SANDY, UT--(MARKET WIRE) — December 9, 2008 – RemoteMDx, Inc. (OTC BB:RMDX.OB), a national leader in delivering patented monitoring and integrated GPS/Cellular/RF tracking systems, which observe and track offenders no matter where they may be, announced that on September 29, 2008, the Company had effected the separation of the business and assets of its former subsidiary corporation, Volu-Sol Reagents Corporation ("Volu-Sol"). As a result of steps taken to date to accomplish the separation, the Company presently holds a minority interest equivalent to approximately 16% of the issued and outstanding common stock of Volu-Sol.
The separation is part of the Company's continuing efforts to focus on its core business model of tracking, monitoring and case managing criminal offenders, and to improve operational cash flow, overall profitability and concerted research and development initiatives. Over the course of approximately 12 months, the Company has taken steps to divest itself of and to separate from Volu-Sol, its medical stain and reagents operating division. Strategically, both entities are now free to pursue independent business models and unique development paths.
"RemoteMDx is focused upon the deployment and expansion of its offender management solution that is experiencing good growth. Volu-Sol, on the other hand, is focused on medical diagnostics and creating products that help manage the lives of the elderly. As RemoteMDx's management, we feel that the Company's focus and resources must be singly centered around the growth of its offender tracking solutions. Through this separation both entities will better be able to focus on success," said John Hastings, president of RemoteMDx.
Since its deployment in August 2008, over 1,900 of the Company’s new TrackerPAL II devices have been shipped. The Company estimates that as a direct result of these shipments, the annualized revenues from 13 of the Company’s top 25 accounts will increase by approximately $1,800,000. In addition, the Company has added 30 new agencies, counties or jurisdictions as customers over the past 90 days, which the Company estimates will result in annualized incremental revenues of approximately $4,000,000.
About RemoteMDx
RemoteMDx, through its SecureAlert subsidiary, delivers patented monitoring systems that observe and track offenders no matter where they may be -- in their car, home or office. SecureAlert can intervene in real-time with direct voice communication when an offender is in violation of probation or parole, such as sex offenders who are prohibited from entering school areas, parks, etc. Highly trained case managers monitor the offender's activities 24/7 through satellite mapping and computer systems. The SecureAlert programs allow convicted criminals to re-enter society by keeping them accountable 24 hours a day, every day, while reducing the burdens and costs carried by the criminal justice system. To learn more about RemoteMDx, visit www.remotemdx.com.