Sure Trace Establishes Structure for Sure Trace Asia

Sure Trace Security Corporation (OTCBB:SSTY) is proud to announce that it has begun developing various key relationships on a global basis for the procurement of beneficial contracts for its I.D.ology product line.

The relationships follow a distribution model that generates a royalty fee together with an equity stake in these regional distributors by which Sure Trace retains a predetermined equity stake in the various distributors and a percentage fee from gross revenues.

This distribution model provides a significant return for Sure Trace as the expenses born from executing various large-scale contracts on a regional basis will be the responsibility of the regional distributor of the I.D.ology products.

The first regional distributor to be established is Sure Trace Asia, which has been incorporated as STA Inc. in Hong Kong. Sure Trace along with its Asian partners are entering into a two part agreement, one for the Distribution rights that Sure Trace will realize both a fee for granting the right to distribute I.D.ology products as well as an equity stake for the shareholders of Sure Trace based upon the distribution model in Sure Trace Asia.

Sure Trace shall receive a distribution fee of 15% of all gross revenues and an equity stake in SSTY Asia, the details of which are to be finalized and disclosed by next week. As part of that announcement encompassing this detail, Sure Trace will also include a breakdown of how Sure Trace intends to distribute the equity interest in the regional distributor by way of share dividend to Sure Trace shareholders, as well as the value of the dividend on a per share basis. This first relationship shall form the basis of all regional global distributors going forward and may vary region to region.

Sure Trace management has developed this distribution model because it diverts the expenses of executing these contracts to its subs and allows Sure Trace to concentrate on its technology improvements and global proliferation and not on regional execution.

This methodology also allows for regional players who have expertise in the geography, language and culture to market Sure Trace product lines to the specific region. Cultural and language barriers can form a significant impediment in trying to market these products in various regions. The distribution model allows for regional partners that have expertise in their countries and/or regions to market Sure Trace products.

Sure Trace will receive a 15% fee calculated on gross revenues without taking the added risk and cost of integrating and managing anti counterfeiting and loss prevention products in a region they may have no expertise or knowledge in. In addition, as a condition of the distributorship agreement, the distributor must take their company into a public vehicle. This provides Sure Trace, and later its shareholders with a significant equity stake in other public vehicles with revenue as well as retaining their Sure Trace shares with their own license fee revenue stream.

Contacts

SmallCap Corporate Partners Inc.
John Kuehne - Frank Quinby
(250) 380-2274
Email: info@smallcap.ca
Website: www.smallcap.ca / www.suretrace.com

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