+++++++++++++++++++++++++ MXL has signed an agreement with Softline Company for the distribution of MXL's eMinerva into the Russian Federation. Softline is one of the leading suppliers of licensed software to the Russian and Commonwealth of Independent States. Softline has been operating since 1993 and has been awarded status of Microsoft Gold Certified Partner. Softline has a distribution network of over 500 software dealers throughout its geography and has a catalogue circulation list of 30,000 to I/T and business decision makers. The signing of this agreement can be attributed in some way to the recently announced partnership between MXL and Microsoft Business Solutions.
The Russian and contiguous markets are vast with potential business opportunities measured in the thousands. MXL expects to initially sell 200 licenses per year which would generate $6m in license fees p/a. Ongoing enrolment fees, should the targeted license sales be met, would generate $12m p/a in total over three years.
Work will begin in November 2002 promoting eMinerva. into the Russian market. MXL has targeted the first quarter 2003 for the release of the Russian translated version of eMinerva. This will be the first version of release 4 of eMinerva to be translated from English.
Updating on otheractivities, MXL continues to work with Microsoft on a number of strategic issues with a preliminary proposal already with one state government in Australia for its school education system. If successful this will generate $6m in annual enrolment revenues. A second government tender is due shortly. Discussions are also nearing conclusion with a Microsoft partner as a potential distributor of eMinerva in Australia. MXL remains on track for the integration of the Microsoft general ledger package for beta testing in January 2003. The completed package will be the first flexible web-based one step product for financial and management control of education institutions.
A number of other substantive issues are under negotiation both in Australia and internationally and these will be announced once they have reached finality.
R Clements CEO
MXL Price at posting:
0.0¢ Sentiment: None Disclosure: Not Held
