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EXHIBIT 99.1
[on CalAmp letterhead]
FOR IMMEDIATE RELEASE
CalAmp Announces Settlement Agreement with Key DBS Customer
OXNARD, Calif., December 17, 2007--CalAmp Corp. (NASDAQ: CAMP), a
leading
provider of wireless products, today announced that it has entered
into a
settlement agreement with a key customer that resolves matters
regarding a
previously disclosed product performance issue affecting Direct
Broadcast
Satellite (DBS) equipment manufactured by CalAmp for this customer
that
resulted in the customer returning product and putting orders on
hold
pending the requalification of products.
Among other agreement terms, CalAmp will issue to the customer one
million
shares of CalAmp common stock and a three year warrant to purchase
an
additional 350,000 shares of common stock subject to certain
restrictions.
CalAmp will also issue a $5 million non-interest bearing promissory
note to
this customer. Please
refer to CalAmp's 8K filed today for details.
"In reaching this agreement, we have reaffirmed our commitment to
stand
firmly behind our products and regain the confidence of this key
customer,"
commented Fred Sturm, CalAmp's President and Chief Executive
Officer. "This
customer has accounted for a substantial portion of CalAmp's
revenues during
the last three fiscal years, so a successful resolution of this
matter and
retention of this customer were important for our Company.
The settlement
addresses the customer's claims in a manner that mitigates the cash
flow
impact on CalAmp.
Furthermore, we believe this agreement aligns the
interests of both companies to expeditiously resume our
commercial
relationship and we will work closely with the customer to
finalize
requalification of our products."
Based on currently available information, the Company believes that
its
previously established reserves as of August 31, 2007, the end of
its most
recently reported fiscal quarter, will be adequate to cover the
total costs
of this settlement agreement. However
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