COLORADO SPRINGS, Colo., June 15, 2004 (PRIMEZONE) -- Maximum Dynamics, Inc. (OTCBB:MXDY), a projects management and back office services company focused on projects in the banking, communications, energy and logistics sectors, announced today that it has formed a joint venture with Cooperative Development Agency CC ("CDA"), a South African banking and financial services entity. CDA CC provides village banking management and financial services to 37 village banking branches throughout South Africa. The joint venture will be a new entity called Cooperative Development Agency (Pty), Ltd ("CDA Pty") wherein CDA shall own 60% and Maximum shall own 40%.
CDA CC is a South African company that has worked at the grass roots level of village banking since the mid-seventies. Over time, CDA CC has grown to become the entity that holds the management agreement for 37 branches, and a less formal relationship with a further 59 branches, bringing the total to 96 branches.
Each of these branches is a cooperative development bank, wherein the bank is owned and funded by its members. In order to operate as a village bank, these branches must operate under the supervision and control of the Savings and Credit Co-operative League of South Africa (SACCOL), which in turn is recognized by the South African Reserve Bank. SACCOL has appointed CDA CC in the Kwa-Zulu Natal Province as the regulating body for SACCOL due to CDA CC's corporate governance and high standards of management and monitoring of the village branches, which has been widely accepted as among the best in practice.
The goal of the joint venture is for CDA Pty to roll out infrastructure to the 37 branches and provide full banking management services. In exchange for its 40% equity stake in the joint venture, Maximum will manage and finance the creation and implementation of the infrastructure required to bring operations in line with first world banking standards. With this in place, the village banks can expand their customer base through increased capacity from the infrastructure. An agreement is already in place to expand dramatically upon the products and services of the banking operations with what CDA CC believes will be a comparative increase of revenue.
Maximum has already conducted site surveys of three branches and will have a system installed and running in each site within five weeks. Once these three banks are operational with the new infrastructure, CDA Pty shall begin implementation of its current Memorandum of Understanding (MOU) with Ithala Development Finance Corporation ("Ithala") in which the intention is that Ithala shall help fund the remaining 34 branches. Ithala (www.ithala.co.za) was created by an Act of Parliament and operates as a banking entity under a special exemption provided to it by the Reserve Bank of South Africa and has a substantial capital base.
As part of the infrastructure, Maximum will be placing its mobile point of sale units (MPOS) into the 37 branches to provide their members with an electronic system for the dispensing and management of virtual pre-paid vouchers for a variety of high volume products. The MPOS terminal can also double over as a mobile phone booth where people can pay a premium to utilize the phone. Both these services will, as a first phase to the Maximum roll out, supply much needed and desired services and substantial revenue is expected to materialise within a relative short period of time.
"We are extremely pleased with our relationship with CDA and the formation of this joint venture," said Joshua Wolcott, Maximum's CFO. "The relationship with CDA and Ithala is an extremely unique one providing us with the opportunity to create a substantial revenue line in the short to medium term. CDA has relationships with 59 other branches nationwide and we have already been discussing a strategy for these and other branches. CDA CC believes that our infrastructure should improve the capacity for the 96 total branches we are targeting so that their membership can grow from its current base of about 25,000 members to as high as 800,000 members. We believe that this model can be duplicated in other countries as well with similar high potential, which is really very exciting."
"We have our own model at CDA that has been very successful to date wherein the people are empowered and assisted in the economic development," said Johannes Cindi, Managing Director of CDA CC. "This joint venture provides us with the pieces we need to create a solid platform from which to launch this model nationwide. I believe the philosophy of Maximum integrates extremely well with CDA and our model and I look forward to seeing our venture succeed."
The formation of the joint venture replaced an original letter of intent to acquire 40% of Khumo (Pty), Ltd. wherein Maximum would have provided the infrastructure required for Khumo to provide services to village bank branches. It was decided that a direct involvement with CDA would be more appropriate and of a far greater benefit to our shareholders.
For more information on Maximum Dynamics, visit the company's website at http://www.maximumdynamics.com.
Contact: Investor Relations John Campo Tel: 410-321-5454 Email: info@eliteequitymarketing.com
This press release may contain forward-looking information within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934, and is subject to the safe harbor created by those sections. Maximum Dynamics assumes no obligation to update the information contained in this press release. Maximum Dynamics' future results may be affected by its ability to continue to implement its hedge fund administration services, its newly acquired Internet marketing capabilities, its dependence on procuring highly competitive hedge fund administration contracts, its dependence on hiring and retaining qualified professionals, potential fluctuations in its quarterly operating results, its dependence on certain key employees and its ability to timely and effectively integrate the businesses it may acquire.