| [April 26, 2006] |
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Statement From Applied Wireless Identifications Interim Chairman and CEO Larry Kellam
MORGAN HILL, Calif. --(Business Wire)-- April 26, 2006 -- The Board of Directors of Applied Wireless Identifications (AWID) has terminated former Chairman and Chief Executive Officer Donny Lee's employment after senior management and the Board of Directors determined that some of the Company's products do not fully comply with Federal Communications Commission (FCC) equipment authorization rules. For example, among other issues, some of its products lack the necessary FCC certification.
This issue does not affect AWID reader assemblies embedded in devices manufactured by others, such as handhelds, printers, and applicators. These manufacturers obtain certification on their own and, to our knowledge, those manufacturers have satisfied their FCC certification obligations.
Senior management first detected possible issues on March 20, when Vice President of Marketing Louis Sirico was forwarded a fax from a customer stating that products shipped to the customer were not certified by the FCC. On that date, Mr. Sirico informed Company President Jeffrey Jacobsen, and Mr. Sirico began to investigate at Mr. Jacobsen's request.
On April 5, the Company retained Wilkinson Barker Knauer LLP as new FCC counsel and began a comprehensive investigation regarding compliance with FCC equipment authorization rules. On April 5, the Board of Directors also retained Orrick, Herrington & Sutcliffe LLP as new outside counsel and the firm has commenced an independent investigation as to why the Company did not comply with FCC equipment authorization rules and who was responsible for the noncompliance.
On April 7, the Board of Directors terminated Mr. Lee's employment and appointed Board member Larry Kellam as Chairman and Interim CEO.
The Company has begun to inform its customers by letter and telephone of the equipment authorization issues and has also informed the FCC staff of the pending compliance investigation. The Company intends to do its utmost to complete the investigations, come into compliance, and resume its sales of its products as quickly as practicable, as well as cooperate with all governmental authorities. The Company will also work with all of its customers to ensure that these matters are resolved appropriately.
About AWID
Founded in 1997, Applied Wireless Identification Group (AWID) has been a trusted name in RFID technology. AWID has twice been honored as one of only 25 companies designated "Rising Stars" by the Deloitte Technology Fast 500. AWID is a founding member of EPCglobal; a founding member of the RFID IP Patent Pool & participates in the Intermec RFID Rapid Start licensing program.
For more information, visit http://www.awid.com/support
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