Oslo, Saturday, January 1, 2000
Stock Exchange Notification
BLOM ENTERS INTO AGREEMENT WITH PICTOMETRY® FOR 13 COUNTRIES IN EUROPE
Blom has entered into an exclusive agreement with Pictometry International Corp., which is securing licensing rights for the company for a total of 13 countries in Europe. Pictometry® is a totally new and unique method of collecting and processing oblique and vertical aerial images, a technology that in the company's opinion will have a long/term impact on the market for geographic information (GIS).
The agreement runs for a period of 10 years with an option for renewal. Over a period of three years Blom will pay a licence fee totalling USD 3.2 million. In addition, Blom will pay an annual royalty to Pictometry of 22 per cent of all sales that are directly related to the use of the technology.
Blom's aim is to have all major urban areas of Europe captured by means of the new technology within a period of three years. This large scale program will require between 15-20 aircraft equipped with Pictometry patented equipment and software for this purpose. The total investment over the period for setting up such a library is estimated at approximately NOK 90 million. Blom will own this library, which will be sold through licences.
The product is considered to both compliment and add to the existing GIS products. The company's investment will therefore be an addition to the existing activities and at the same time create new markets where existing GIS products are not historically used. There are plans to establish a separate corporate structure, which will possess all rights and establish suitable sales channels for the respective countries.
Pictometry in the US has recently entered into an agreement with Microsoft for the exclusive use of this technology for the internet based mapping product "Virtual Earth" on its MSN portal. It is expected that the US “Virtual Earth” with the Pictometry technology will be launched later this year.
Our business in the UK, Simmons Aerofilms Ltd, has had this licence right for the UK since March 2005, and up until now has captured about 15 per cent of the planned areas.
If the acquisition of CGR (see the stock exchange release of 22 September 2005) goes through as planned, Italy and the rest of Western Europe will also be parties to the agreement. CGR, which already has an agreement for Italy, has captured approximately 40 per cent of Italian urban areas with Pictometry.
Pictometry is a registered trademark of Pictometry International Corp