Magal Announces Termination of an Agreement by a Customer in Europe
April 21 2006 - 7:18AM
PR Newswire (US)
YAHUD, Israel, April 21 /PRNewswire-FirstCall/ -- Magal Security
Systems, Ltd. (NASDAQ NM: MAGS, TASE: MAGS) today announced that
the European customer referenced in the Company's press release of
April 7, 2006, has given notice that it has decided to terminate
its agreement with Magal. The Company believes that such
termination has no legal basis or factual merits and intends to
take all legal actions and proceedings necessary to enforce the
agreement and compensate Magal for all expenses incurred as a
result of the improper termination of the agreement. Jacob
Even-Ezra, Chairman of Magal, said: "While management believes that
the termination of this agreement will not have any long term
negative affect on the Company's performance, it will likely result
in lower than forecast revenues and earnings in the first six
months of this year." Magal also announced that it will be
releasing its first quarter 2006 results on Monday, May 1st 2006,
before the US market opens. The Company will also be hosting a
conference call on the same day at 10:00am EST. On the call, Mr.
Jacob Even-Ezra, Chairman of the Board & CEO, and Ms. Raya
Asher, V.P. Finance & CFO, will review and discuss results and
will then be available to answer questions. To participate, you may
call any one of the teleconferencing numbers that follows: US
Dial-in Number: 1-866-860-9642 Canada Dial-in Number:
1-866-485-2399 ISRAEL Dial-in Number: 03-918-0610 INTERNATIONAL
Dial-in Number: +972-3-918-0610 At: 10:00am Eastern Time 7:00am
Pacific Time 5:00pm Israel Time The call will also be broadcast
live and will be accessible through a link on Magal's website. A
replay of the call will be available online for three months from
the day after the call. Magal's website can be found at:
http://www.magal-ssl.com/. About Magal Security Systems, Ltd.:
Magal Security Systems Ltd. (Magal) is engaged in the development,
manufacturing and marketing of computerized security systems, which
automatically detect, locate and identify the nature of
unauthorized intrusions. Magal also supplies Video Monitoring
Services through Smart Interactive Systems, Inc., a subsidiary
established in the U.S. in June 2001. The Company's products are
currently used in more than 70 countries worldwide to protect
national borders, airports, correctional facilities, nuclear power
stations and other sensitive facilities from terrorism, theft and
other threats. Israeli-based Magal has subsidiaries in the U.S.,
Canada, the U.K., Germany, Mexico, Romania and an office in China.
Magal trades in the U.S. on the NASDAQ National Market since 1993
and in Israel on the Tel-Aviv Stock Exchange (TASE) since July
2001, under the symbol MAGS. This press release contains
forward-looking statements, which are subject to risks and
uncertainties. Such statements are based on assumptions and
expectations which may not be realized and are inherently subject
to risks and uncertainties, many of which cannot be predicted with
accuracy and some of which might not even be anticipated. Future
events and actual results, financial and otherwise, may differ from
the results discussed in the forward-looking statements. A number
of these risks and other factors that might cause differences, some
of which could be material, along with additional discussion of
forward-looking statements, are set forth in the Company's Annual
Report on Form 20-F filed with the Securities and Exchange
Commission. Contacts: Magal Security Systems, Ltd GK International
Raya Asher Ehud Helft/Kenny Green Tel: +972-3-539-1444 Tel:
1-866-704-6710 Fax: +972-3-536-6245 Int'l dial: +972-3-607-4717
E-mail: E-mail: / DATASOURCE: Magal Security Systems Ltd. CONTACT:
Magal Security Systems, Ltd - Raya Asher, Tel: +972-3-539-1444,
Fax: +972-3-536-6245, E-mail: . GK International - Ehud Helft/Kenny
Green, Tel: 1-866-704-6710, Int'l dial: +972-3-607-4717, E-mail: /
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