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STOCKGROUP ACQUIRES TCS MOBILE
Stockgroup Acquires Wireless Financial
Data Company
NEW YORK, NEW YORK, Jan 25, 2007 (CCNMatthews via
COMTEX News Network) --
Stockgroup Information Systems Inc. (OTCBB:SWEB)(TSX
VENTURE:SWB), a leading financial media company, today announced
that it has signed an agreement to purchase the Mobile Finance
Division of TeleCommunication Systems Inc., an Annapolis, Maryland
based provider of wireless data solutions.
The acquisition provides strategic value to Stockgroup and its
shareholders. Stockgroup gains:
- A proven set of wireless financial products for migration onto
Stockgroup's platform, which saves Stockgroup significant
development costs and go-to-market time
- A large customer-base through which Stockgroup can leverage its
existing product-line. Customers include Citigroup, HSBC, Merrill
Lynch, Morgan Stanley, Barclays, Bear Stearns and Credit Suisse
First Boston
- Expected to add in 2007, US $6 million in profitable revenue
- Distribution agreements with Reuters, one of the world's
largest financial information providers, and Hutchison, a global 3rd
generation telecommunications provider
"Wireless devices like the Blackberry and those with Windows
Mobile 5 have become critical extensions of the desktop computer and
essential to active investors and traders. This acquisition helps
Stockgroup gain the proven wireless technology and infrastructure
identified on our product roadmap, and enables us to provide value
to our customers with an industry leading product," said Marcus New,
President and CEO of Stockgroup. "Through this transaction, we are
exceptionally well-positioned to provide financial information to
mobile phones and devices."
Stockgroup has agreed to pay 1.5 million restricted shares and
assume the assets and liabilities of the acquired business. Up to an
additional US $500,000 may be paid if gross profit for the year 2007
meets or exceeds an identified threshold.
About Stockgroup Information Systems Inc.
Stockgroup(TM) is a leading financial media company focused on
user-generated content and collaborative technologies. The
Stockgroup platform for web-based portfolio management and financial
content is licensed to top North American brokerage firms and media
companies. This platform is also extended through StockHouse.com, a
leading online financial portal owned and operated by Stockgroup.
StockHouse.com is home to BullBoards(TM) message board - Canada's
largest community of active investors. Recognized for its engaged
audience, StockHouse.com provides a sought-after demographic for
advertisers.
To find out more about Stockgroup (OTCBB: SWEB, TSX-V: SWB),
visit our website at www.stockgroup.com.
This release contains "forward-looking statements" within the
meaning of Section 27A of the Securities Act of 1933 and Section 21B
of the Securities Exchange Act of 1934. Any statements that express
or involve discussions with respect to predictions, expectations,
beliefs, plans, projections, objectives, goals, assumptions or
future events or performance are not statements of historical fact
and may be "forward-looking statements". Forward-looking statements
are based on expectations, estimates and projections at the time the
statements are made that involve a number of risks and uncertainties
which could cause actual results or events to differ materially from
those presently anticipated. Forward-looking statements in this
action may be identified through the use of words such as "expects",
"will", "anticipates", "estimates", "believes", or statements
indicating certain actions "may", "could", or "might" occur.
Forward-looking statements in this press release include those
concerning Stockgroup's belief that the TeleCommunication Systems
acquisition should save Stockgroup significant development costs and
go-to-market time, that the acquisition will provide strategic value
to Stockgroup and that Stockgroup expects to generate $6 million in
profitable revenue. More information about potential risk factors
that could affect our business is included in the Company's Form
10-QSB for the quarter ended September 30, 2006, which are on file
with the SEC and available at the SEC website at www.sec.gov.
Stockgroup is not obligated to update these forward-looking
statements to reflect events or circumstances after the date of this
document.
SOURCE: Stockgroup Information Systems Inc.
Stockgroup Information Systems Inc. Marcus New President and
Chief Executive Officer 1-800-650-1211 Website: www.stockgroup.com
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Stockgroup and marketStream are trademarks of Stockgroup Information Systems Inc.
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