Digital Dispatch intends on acquiring Maddocks Systems

RICHMOND, B.C. (July 7, 2004) — Digital Dispatch Systems Inc. of Richmond, B.C. has entered into a non-binding Letter of Intent to purchase neighbouring trucking software company Maddocks Systems Inc.

Digital Dispatch — a global provider of turnkey wireless mobile data solutions for real-time dispatching, vehicle location, and tracking — will pay a total consideration of $10 million in cash with $9 million payable upon closing and $1 million to be paid as an employment retention bonus over the next three years.

Maddocks, also based in B.C., is one of North America’s leading wireless fleet management software providers, representing about 60,000 trucks.

The transaction — which is still subject to due diligence and other regulatory approvals — is intended to be effective August 31st, 2004, and is expected to close on September 17th, 2004, or at a date mutually agreed by both parties. Both parties can cancel the LOI unilaterally prior to entering into the definitive purchase agreement.

Maddocks and its shareholders have agreed to deal exclusively with Digital Dispatch with respect to the sale of Maddocks for the next eight weeks.

Certain key Maddocks employees will be required to enter into employment and Non-Disclosure contracts with Maddocks and Digital Dispatch, the company says.

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