Arkados Signs Licensing Agreement with Tatung for Its PEMS Smart Factory Solution

NEWARK, N.J., July 16, 2014

Pursuant to a licensing agreement signed on July 10, 2014 (the "Licensing Agreement") by both Tatung and Arkados, Arkados will provide Tatung with PEMS-SF enabled stations or subsystems as well as data analytics and reports on a subscription basis in exchange for software license fee per station as well as update and annual maintenance fees from Tatung. Additionally, Arkados expects to collect royalty fee for the products that are manufactured by Tatung and contain software intellectual property owned by Arkados. 

Terrence DeFranco, Chief Executive Officer of Arkados Group, Inc., commented, "Today marks an important milestone for Arkados as our strategic partnership with Tatung enters into a new chapter. The Licensing Agreement attests to Tatung's continued confidence and support for Arkados and sets the stage for broader adoption of PEMS-SF at Tatung's manufacturing facilities as well as potential contract wins at other customers in the future. While the immediate financial benefit of this Licensing Agreement is tremendous for Arkados, we are also thrilled with the long-term prospects of PEMS-SF and believe it can be one of the key drivers for revenue growth and eventual profitability."   

Dr. Alan Pan, Chief Strategy Officer of Tatung's Consumer Business Group, commented, "While Tatung is dedicated to providing industry leading products and solutions to customers around the world through continuing innovation and integration, we believe that Arkados' cutting-edge PEMS-SF solution allows us to gain additional intelligence throughout the entire production cycle and drive down our production costs with its seamless integration into our existing computer systems in our manufacturing processes. We look forward to expanding the scale and scope of our win-win partnership with Arkados."  

About Arkados Group, Inc.

Arkados Group, Inc. ("Arkados" or the "Company") is a leading software and hardware design company focused on developing solutions that enable machine to machine communications for the Internet of Things (IoT). Our solutions support smart grid and smart home applications primarily in the areas of home and building automation and energy management. The Company's solutions are uniquely designed to drive a wide variety of wireless and powerline communication (PLC)-based products, such as sensors, gateways, video cameras, appliances and other devices. By utilizing the Company's solutions, Arkados' customers can bring numerous sophisticated, full-featured products to market faster at a lower overall development cost.  Arkados® is a registered trademark of Arkados Group, Inc. For more information about Arkados, please visit: http://www.arkadosgroup.com.

About Tatung Co.