Sydney, Nov 14, 2008 AEST (ABN Newswire) - We welcome the announcement that MVSS, a company partly owned by IBM representing the major shareholder Group of Zylotech, have pledged their full support to Zylotech Limited (ASX:ZYL), its business model and direction set out by the current management and the synergistic market opportunities both local and overseas (see attached letter of support).
Importantly, this major shareholder Group has pledged its support in future capital raising by the company and to assist in the bolstering of the company for the benefit of all shareholders.
The letter is reproduced below:
MVSS
IBM
IBM Delivery Partner
12th November 2008
Nick Sikiotis
Chief Executive Officer
Zylotech Limited
Dear Nick,
You will no doubt be aware that Deancorp Pty Ltd, MVSS (Multi Vendor Support Services Pty Ltd) and myself personally, are collectively "substantial shareholders" of Zylotech Ltd. Our Current Shareholding totals just over 9%.
MVSS, a company partly owned by IBM, is a 24/7 Third Party Maintainer of high-end sewers and a 2nd & 3rd level Support Partner for IBM. We operate via channel partners through Australia, Asia, Middle East and Europe and our current turnover exceeds $10M.
Like Zylotech, MVSS is also an IBM Delivery Partner and we are committed to explore synergistic opportunities with Zylotech, both in Australia and particularly overseas, to assure mutually beneficial business outcomes. To that end, I would be pleased to discuss this matter with you in the very near future. Unfortunately I am committed to a trade fair in the Middle East whilst your November 2008 AGM is on.
MVSS has been watching developments at Zylotech very closely and we are more than impressed with what we see in the ASX announcements. The business model and direction sit well with us. We believe that the various technology offerings of Zylotech, including the end-to-end security solutions via strong channel partners, show significant promise and should significantly improve Zylotech's market share in this emerging market.
We have a very good understanding of the issues of under-capitalisation with small-cap companies in the technology sector and we are more than happy to pledge our support in future capital raisings by the company.
I conclude by stating, without equivocation, that our interest in Zylotech is long term and we look forward to assisting in any way we can to bolster the financial results of the company for the benefit of all shareholders.
Regards,
Mal Fraser-Clay
Chief Executive Officer
##END##
Contact
Nicholas Sikiotis
CEO
TEL: +61-2-9427-2134
FAX: +61-2-9427-2788
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