Supercom Ltd., an Israeli high-tech company listed on announced that its US subsidiary, Supercom Technologies Inc., has signed a contract with AutoSmart Inc. of Fairfax, Virginia for a comprehensive contactless smart card system. AutoSmart Inc. will offer to its customers worldwide a unique contactless smart card for their cars. The OTTOSMART card will include: key information on the car, ownership (past and present), maintenance and service history. Initial revenues for Supercom will consist of $2.0 million for database software development, infrastructure and first supply of smart cards and card readers. The huge US and Canada car market and the expansion of the service to the global market, represent a very large potential for Supercom’s contactless smart cards and smart card readers. According to Sami J. Jadallah, President of AutoSmart Inc., the potential for Supercom is between $20 to $40 million in the next four years. Supercom has been chosen as the integrator of the system and the exclusive technology supplier, including software development, contactless smart cards, contactless smart card readers/writers and a central server installation.
The AutoSmart contract represents Supercom’s first contract on the commercial market in the United States. The company’s US subsidiary, Supercom Technologies Inc., has been selected by AutoSmart Inc. for the delivery of a comprehensive contactless smart card system. AutoSmart Inc. is a US company with a global scope focusing on the car industry and offering to its customers a contactless smart card for their cars.
The OTTOSMART card will include among others: manufacturers and technical data, specifications, key information like color, key code, engine numbers, warranty information, recalls, insurance, registration and repairs, maintenance and service history and ownership (past and present). The OTTOSMART card, which functions as a “car ID”, will give proof of the complete car’s history and will enhance the confidence in the car value when buying or selling a second-hand car. The OTTOSMART card will be distributed by automobile dealerships throughout the US, Canada, Europe and the rest of the world, and will allow vehicle owners to keep track of the service history of their car whether such a service was done at the dealerships or at any of the participating service centers. In addition, car owners will have access to the information from home, or at dealerships and service centers. The company is currently active in the United States and Canada, and is prospecting to launch its activities in other continents.
Supercom will be the exclusive technology provider, including database software development, contactless smart cards, contactless smart card readers/writers and a central server installation. Initial revenues will consist of $2.0 million, including database software development, infrastructure, and the first supply of smart cards and card readers. Supercom Technologies Inc. started its operation last May, in view of the siginficant potential in the contactless smart cards field in North America.
Sami J. Jadallah, President of AutoSmart, Inc. says, “OttoSmart is a unique and pioneering service, combining the latest contactless smart card technology from Supercom with the latest Internet technology. In the United States, with over 207 million registered vehicles, the market potential is huge. Last year over 17 million new vehicles/cars and trucks were sold in the US, and this number does not include the more than 35 million vehicles exchanging hands as used/pre-owned cars and the more than 40 millions vehicles under warranty. We carefully looked at the available technology and found the best solution for our potential customers within Supercom. We look forward to many years of successful co-operation with Supercom, not only in the US, but also worldwide, because we are convinced that this new and innovative product will receive acceptance from customers. For Supercom, this represents a business potential of $20 to $40 million in the next 4 years.”
“We are very pleased with the AutoSmart deal. It proves that our leading edge technology and solutions as well as our flexibility in meeting the client’s needs are well received by the American commercial market,” said Danny Gilboa, President of Supercom Technologies Inc.
Supercom has been listed on EASDAQ (SPRC) since April 23, 1999. The company employs about 80 staff. Supercom designs, develops, produces, markets and sells unique technologies for the National ID & professional Commercial smart cards markets – including rapidly growing e-commerce markets-, using its own unique, patented technologies and know-how. Among Supercom’s proprietary technologies are laser printing on thermally sensitive substrates, management software packages, contactless smart card technology and marked toner powder for securing printer applications. The identification documentation includes passports, visas, driver’s licenses, vehicle registrations and national or regional identification cards.
Turnover for the year ending December 31, 1999 was $3.89 million. Supercom has sold its systems in numerous countries throughout the world, such as the UK, Hong Kong, Moldova, China and Israel.