Optelecom-NKF Reports on Strategic Initiatives

GERMANTOWN, Md., July 1 /PRNewswire-FirstCall/ -- Optelecom-NKF, Inc. (Nasdaq: OPTC), manufacturer of market leading Siqura^® advanced video surveillance solutions, today reported it completed the consolidation of manufacturing operations in the U.S. into its existing Dutch manufacturing facility, supplemented with U.S. based contract manufacturing at ACDI, a manufacturing services firm based in Frederick, Maryland. The changes are part of a series of anticipated restructuring initiatives announced April 12, 2010 that are designed to strengthen the Company's financial and operational framework.

The Company has also completed the realignment of U.S. sales to focus on three distinct market sectors; Transportation, Government, and Critical Infrastructure.  Each sector will be supported by a dedicated team of individuals, including Sales Directors, Industry Solutions Managers and Solutions Architects.  U.S. Customer Service will continue to be based in the Company's Germantown, MD global headquarters.

Chuck Queri has been named Sales Director for the Transportation sector. He was formerly Sales Director for the Americas Region. Prior to joining Optelecom-NKF, Queri was Director of Sales for Primas Software and also held senior positions with U.S. LEC, On-Site Access, Intermedia Communications, and Siemens Communications.

Dan Connole has been named Sales Director for the Government sector. Prior to joining the Company he was Senior Director of Business Development for BAE Systems, were he worked to expand opportunities in Intelligent Boundaries and Protection Solutions. Connole also led the Federal business of Siemens Building Technologies. He is active in the Security Industry Association Government Relations group.

Steve Williams joined the firm on June 1, 2010, and has been named Sales Director for Critical Infrastructure. He is based in the Gulf Coast region.  Prior to joining the Company, Williams was Industry Manager - Oil & Gas, Energy & Maritime, for Pelco Inc. He actively supports ASIS, the Energy Security Council, and the American Port Authorities.

Most of the Company's planned initiatives are now in place.  It is anticipated that all measures will be completed by year-end.   These actions are expected to increase operational efficiency and should generate annualized savings of approximately $2.0 million in 2011, with partial savings expected this year.  

"These actions align our core strengths in developing and supplying top-performing video surveillance solutions for our customers," stated Dave Patterson, Optelecom-NKF's President and CEO.  "Our cost structure had to be optimized to enable the Company to be profitable at reduced revenue levels, while we concentrate on improving U.S. sales performance. This new structure significantly lowers our fixed costs, while enabling our U.S. sales teams to address the unique needs of their respective industry sectors."

"An industry-focused approach will enable us to develop key relationships and brand awareness within each targeted industry," Mr. Patterson continued. "We will utilize the insights gained from end-users and system integrators to drive our ongoing development of specific solutions to meet their needs.  A key advantage that Optelecom-NKF provides to customers is our ability to respond quickly to customer needs, by drawing upon a complete portfolio of video surveillance technologies and products, concentrating our engineering capabilities in developing fit-for-purpose solutions.  Our Solutions Architects are experts in Video over IP and Fiber, which allows a technology migration strategy to be developed for mission-critical applications.  This construct works very well in our European, Middle East, and Asia Pacific regions and is expected to make the difference in strengthening sales performance in the United States. Concentrating our U.S. resources on sales, marketing and corporate management will help us drive profitability across our global enterprise."

Safe Harbor Statement

This press release contains "forward-looking statements," a term used here as defined in the amended Securities Exchange Act of 1934, and it includes statements related to the impact of the restructuring initiatives discussed herein regarding the Company.  Forward-looking statements typically include the words "expect," "anticipate," "believe," "estimate," "intend," "may," "will," and similar expressions as they relate to the Company or its management.  Forward-looking statements are based on our current expectations and assumptions, which are subject to risks and uncertainties, including potential negative effects on our operations and financial results from the restructuring initiatives discussed herein and the risks and uncertainties discussed in detail in the Company's recently filed Annual Report on Form 10-K and other subsequent filings with the Securities and Exchange Commission.  These forward-looking statements speak only as of the date hereof and the Company disclaims any intent or obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.

About Optelecom-NKF

Optelecom-NKF, Inc. (Nasdaq: OPTC) manufacturer of Siqura® advanced video surveillance solutions, provides a full range of network products based on an open technology platform that simplifies integration and installation. Our Siqura® solutions offer a perfect blend of ease of use and processing power, enabling end users to optimize the effectiveness of their surveillance systems while reducing the total cost of ownership. All products and solutions are developed and tested for professional and mission critical applications, such as at highway departments, airports, seaports, casinos, public transport authorities, hospitals, city centers, shopping centers, military bases, and corporate and government campuses. Founded in 1972, Optelecom-NKF is committed to providing its customers with expert technical advice and support.  

SOURCE Optelecom-NKF, Inc.

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