TO: Australian Stock Exchange Ltd Company Announcements Office FROM: C E Pizzey, Company Secretary DATE: 2 September 2005 RE: VISION SYSTEMS TO INVESTIGATE SEPARATING ITS FIRE & SECURITY BUSINESS SUMMARY OF CONTENTS OF ANNOUNCEMENT: • VSL completes a comprehensive strategic review of its businesses • Conclusion is current share price does not reflect fair value of core businesses • Caliburn Partnership Pty Ltd appointed to unlock shareholder value • Strategic options include complete ownership separation of the Vision Fire & Security business • Value release work targeted for completion within the first half of the 2006 calendar year Full details of the announcement are attached. C E Pizzey Company Secretary VSL 0295ASX.pmw Page 2 ASX ANNOUNCEMENT 2 SEPTEMBER 2005 VISION SYSTEMS TO INVESTIGATE SEPARATING ITS FIRE & SECURITY BUSINESS Value Release Strategy Long term Vision Systems Limited shareholders will recognize that historically the Company has had as a cornerstone of its wealth creation strategy, the identification and commercialization of a variety of technology based businesses. Top of mind examples of this are the historic investments and realizations in TTP Com (UK) and Vision Defense both of which released significant returns that in turn enabled significant reinvestment in current Vision Systems’ businesses. Consistent with this, the Directors of Vision Systems Limited have recently completed a comprehensive strategic review of Vision Systems’ businesses. The Directors believe that the prevailing Vision Systems’ share price does not reflect the fair value of its core businesses; Vision BioSystems, Invetech and Vision Fire & Security. As a result, the Directors have appointed Caliburn Partnership Pty Ltd (Caliburn) to investigate opportunities to unlock shareholder value, particularly in relation to Vision Fire & Security. Current Core Businesses Vision Systems’ core businesses operate in different industry sectors and are at different stages of development: �� Vision Fire & Security is a profitable and growing business which has established strong market positions in the global video surveillance and fire detection industries. The fact that both ADPRO® video surveillance and VESDA® fire detection systems were used at the recent meeting of the world’s most powerful leaders at Gleneagles in the UK and that VESDA® has been specified to protect the Forbidden City in Beijing are clear examples that Vision Fire & Security is at the forefront in its particular global markets. �� Vision BioSystems and Invetech, whose revenues are largely derived from the international clinical healthcare market, are at an earlier stage of business development in comparison to Vision Fire & Security. However, the value proposition of these businesses has become clearly evident as all facets of their businesses (cancer detection reagents and instruments and contract medical instrument development and manufacture) continue to grow strongly in a largely recession proof international market that is showing strong and consistent growth. Strategic Options for Vision Fire & Security Strategic options may include a complete ownership separation of Vision Fire & Security from Vision Systems. Any form of separation, if considered to be in the best interests of Vision Systems’ shareholders, will be aimed at ensuring that the market is able to better recognize the underlying value of Vision Systems’ core businesses, potentially facilitating a distribution of funds to Vision Systems’ shareholders and providing the optimal platform to support the rapid growth of Vision BioSystems and Invetech. VSL 0295ASX.pmw Page 3 Proposed Timetable Further details in relation to a possible separation of Vision Fire & Security will be provided to shareholders in due course but it is not expected that any further announcements will be made prior to Caliburn completing its investigation of alternative separation options. As a guide, it is anticipated that this work will be completed within the first half of the 2006 calendar year. About Vision Systems Vision Systems creates, develops, manufactures and delivers high value, technology rich products and services to large and growing international markets. With 90% of the Company’s revenues drawn from customers in the USA, Europe and Asia, markets served include cancer detection, contract R & D and medical instrument development and video surveillance and fire detection. About Vision Fire & Security Leaders in providing systems that protect Life, Property and Business; through researching, developing and marketing innovative technology based solutions for preventing loss associated with fire and security events. For further information please contact: Dr James Fox Mr C Euan Pizzey Managing Director Director of Finance Vision Systems Limited Vision Systems Limited Telephone: 61 3 9211 7018 Telephone: 61 3 9211 7020 Facsimile: 61 3 9211 7001 Facsimile: 61 2 9211 7001
VSL Price at posting:
0.0¢ Sentiment: None Disclosure: Not Held
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