MISSISSAUGA, Ontario, May 29, 2007 (PRIME NEWSWIRE) -- KMA Global Solutions International, Inc. (OTCBB:KMAG) (Frankfurt:VVS), today announced that management is forecasting a significant increase in sales for its Dual Tag product line due to impressive growth in sales of more than 400% for the current fiscal year, for an increase of over $5 million in Dual Tag revenues. The company now expects Dual Tag unit sales to exceed 70 million units, or more than USD$6 million.
The revised volume expectations of more than double the quantity originally expected for the current fiscal year are due to an exponential increase in demand for the standard versions of KMA's Dual Tag product, plus multiple requests for specialized designs. As a result of the high growth in demand for the Dual Tag, KMA has accelerated its plan to increase in production capacity through the implementation of a new high-speed Dual Tag manufacturing line, nearly a full year in advance. Working from an advanced design coupled with the opportunity to utilize recent developments in automatic high-speed labelers, KMA's new high-speed Dual Tag production line far exceeds the capacity of the existing lines, improving efficiency and driving down Dual Tag production costs.
KMA's patent-pending Dual Tag incorporates elements of the two most popular EAS technologies used by retail stores around the world, in a product line that includes self-adhesive source tagging labels and non-adhesive cardstock-based insertable tags. Capable of being applied or inserted at high speed to the inside of packages containing such products as over-the-counter medications, nutraceutical food supplements, electronic games and accessories, and health and beauty products, the Dual Tag has become the source-tagging solution of choice for many items in these product categories. Dual Tag allows the brand owner to maintain just one version of each product in its supply chain rather than managing multiple inventories that differ only by the EAS technology for which they have been prepared.
Jeffrey D. Reid, CEO of KMA Global Solutions International, Inc., said, "The popularity of Dual Tag has spiked significantly in a number of market sectors over the course of the past several months, exceeding our original expectations for the current fiscal year. As we watched the projections for our Dual Tag pass the 70 million unit mark, we realized that we had to act much sooner to increase the existing production capacity, so we are pleased to see our newest high-speed Dual Tag unit come on line in response to this demand."
About KMA Global Solutions International, Inc.
KMA Global Solutions International, Inc. (www.kmaglobalsolutions.com) is a leading worldwide manufacturer and supplier of Electronic Article Surveillance (EAS) labels for the multimedia, retail apparel, health/beauty aids, soft goods, and over-the-counter pharmaceutical industries. KMA provides low cost solutions for retail protection against inventory theft, offering customized labels that use a variety of patented formats to meet unique packaging needs. KMA's patent-pending DUAL Tag(tm) is the only product available that combines the two leading EAS technologies in a single, high-speed application to eliminate the need for multiple inventories, and its patented NEXTag(tm) is the solution of choice for soft goods as a small, flexible non-woven label conveniently sewn into a garment at its manufacturing source.
In recent years, retailers have increasingly demanded retail floor ready merchandise that includes Electronic Article Surveillance (EAS) protection. Under KMA's source tagging program, security tags are embedded in products or affixed to packaging at the point-of-manufacture. The company's patented NEXTag(tm), a low-cost sewn-in solution, Dual Tag, and accessory products are used by retailers and their suppliers the world over.
At KMA, our business mission is to constantly reinforce our industry leadership as a preferred competitive supplier in the timely delivery of superior, cost effective, source tagging products -- all the time, every time. For more information about KMA Global Solutions, visit: www.kmaglobalsolutions.com.
Forward-Looking Statement
Statements included in this press release which are not historical in nature, are intended to be, and are hereby identified as "Forward-Looking Statements" for purposes of safe harbor provided by Section 21E of the Securities Exchange Act of 1934, as amended. Forward-looking statements may be identified by words including "anticipate," "await," "envision," "foresee," "aim at," "believe," "intends," "estimates," including without limitation, those relating to the company's future business prospects, are subject to certain risks and uncertainties that could cause actual results to differ materially from those indicated in the forward-looking statements. Readers are directed to the company's filings with the U.S. Securities and Exchange Commission for additional information and a presentation of the risks and uncertainties that may affect the company's business and results of operations.