Seeing Machines Receives First Order for New Fleet Product. Maintains momentum in other key markets, including new installation with Boeing
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1 3 June 2015 Seeing Machines Receives First Order for New Fleet Product Maintains momentum in other key markets, including new installation with Boeing Seeing Machines (AIM: SEE), the AIM-listed company with a focus on operator monitoring and intervention sensing technologies and services, is pleased to announce that it has received its first order for its new Seeing Machines Fleet product. Seeing Machines also provides an update on its continued progress in other target markets. Seeing Machines Fleet product launched, first orders and shipments Seeing Machines Fleet product is a driver monitoring system designed specifically by the Company for trucks and buses. It provides drivers and supervisors with real-time notification when drivers are fatigued or distracted. Other similar products in this market only allow for fatigue risk mitigation as a post event intervention. The Company has received its first order for 750 units of the Fleet product, from its distributor Insurance Underwriting Managers (IUM) in South Africa. IUM is a leading South African insurance underwriter that focuses on the commercial fleet market. IUM is now offering the Fleet product to its customers with an expectation that driver behaviour will improve, reducing accidents and associated insurance costs. Seeing Machines outsourced manufacturing partner began production of the Fleet product in mid-may, and this order of 750 units will be delivered to IUM during June. The Company is building a strong sales pipeline for the Fleet product, which is offered to customers on either a capex or opex model combined with recurring monthly monitoring service revenues. Seeing Machines launched the Fleet product in the US in late April at the National Private Truck Council (NPTC) Annual Conference in Cincinnati and is now following through on the large number of positive sales leads generated through the conference. Capacity and the capability to serve the significant demand expected from the truck and bus market is rapidly being developed. This includes allocating more of our sales and marketing effort to this market and recruiting a new head of sales with experience in the fleet market. Expressions of interest received from potential distributors of the Fleet product in several markets are being assessed. Aviation sector technology installed in a Boeing flight simulator The Company believes there are significant opportunities for its technology to be deployed in the aviation sector. Several months have been invested in evaluating the industry and discussing these opportunities with a range of leading aviation companies, regulators and other stakeholders.
2 The aviation industry is predicting an enormous increase in demand for pilots, with forecasts that around half a million new pilots will be required over the next ten years. 1 Current methods of selecting and training pilots will struggle to meet this demand. Seeing Machines technology can help make the selection, training and licensing processes more efficient, effective and smarter without impacting on the relevant and demanding standards of the industry. Seeing Machines is currently engaged in a successful research collaboration with Boeing Research & Technology Australia (BR&T-A), providing the eye tracking technology that monitors and measures a pilot's situational awareness. The jointly developed solution was recently installed in a Boeing Flight Services 737 Flight Simulator at the Brisbane International Airport. Using Seeing Machines latest commercial gaze-tracking technology, combined with BR&T-A s data handling and analytics software, the system provides real-time evaluation of a pilot's instrument scan and flight deck interaction. From the extraction of data regarding where a pilot is looking within the flight deck, the pilot's instrument scan pattern is compared to a database of expectations relative to the phase of flight and aircraft profile. This analysis enables the automatic detection of performance breakdowns regarding the pilot s interaction with the flight deck, which can be relayed to the instructor in real time using a wireless tablet PC. Preliminary results obtained from a recent study conducted with operational pilots and check captains from an Australian national airline has proven to be very successful. The accuracy and stability of the eye-tracking system has met or exceeded all expectations, providing a capability that mitigates significant technical risk associated with the intended application of the technology within a variety of current and future aerospace applications. The Company s next steps in Aviation will include further data collection and collaborations with other Boeing stakeholders, International Airlines, Ab-Initio Flight Training Schools and on-going discussions with the relevant Aviation Regulators. Caterpillar alliance beyond mining Seeing Machines and Caterpillar continue to work together through the agreed phases of our global alliance agreement. Caterpillar dealers are continuing to sell the DSS product to their customers across Caterpillar s expanded fields of operation, with solid sales results despite challenging conditions in the mining industry. In March the Company signed a marketing and licence agreement under which Caterpillar Safety Solutions will provide 24/7 monitoring and analytical services to their global customers using Seeing Machines DSS products. Caterpillar Safety Solutions, in tandem with global Cat dealers and Seeing Machines, will offer customers a unique, end-to-end fatigue risk management solution, incorporating Seeing Machines DSS in-vehicle protection and 24-hour DSSi operator monitoring service provided through Caterpillar s Condition Monitoring Centres. 1 Flight International, December 2014
3 This agreement with Caterpillar extends the reach of the DSS services from mining, into Caterpillar s broader industries including construction, aggregate and quarry and forestry, and will be accessible through Caterpillar s global dealer network.
4 Automotive In the automotive market the Company is continuing to work with Takata to integrate the Company s technology into passenger cars as part of the Advanced Driver Assistance Systems, or ADAS initiatives. Through Takata the Company has secured a contract to develop driver monitoring systems for a global car maker, as previously announced. This project is progressing on schedule. At a recent meeting at the Company s head office in Canberra, senior leaders from Takata Japan and North America reaffirmed that driver monitoring systems are a critical component of their long term product roadmap and that they are committed to the mutually exclusive partnership with Seeing Machines. The Company continues to work closely with Takata s electronics and new products division to jointly respond to requests for quotation from a number of major OEMs. Planning is well advanced to deliver multiple technology demonstration units to a number of OEMs to help them meet their launch targets for semi-autonomous vehicles and ADAS technologies. Continued progress in other target markets In the rail industry the Company continues to work with partner Electro-Motive Diesel, Inc. (EMD), part of the Caterpillar group, to develop in-cab operator fatigue and distraction monitoring systems for use in locomotives and other railway vehicles. Recent rail accidents have led to increased interest, and trials of Seeing Machines technology are expected to begin with railway customers in multiple markets over the next few months. Finally, the Company also continues to progress opportunities with Samsung Electro-Mechanics Corporation to facilitate joint development of face and eye tracking technology for the consumer electronics industry. At this stage the Company s investment of resources in this market is modest, but it remains a key target market given the large size of the consumer electronics market and the potential for consumer devices to reach into other markets over time. Seeing Machines expects to provide a post financial year end trading update in July Enquiries: Seeing Machines Limited Ken Kroeger, Managing Director and CEO Ken.Kroeger@seeingmachines.com James Walker, Finance Director James.Walker@seeingmachines.com US media inquiries: Anne Donohoe Anne.Donohoe@seeingmachines.com
5 finncap Ltd, Broker for Seeing Machines Ed Frisby / Christopher Raggett Corporate Finance Joanna Weaving, Corporate Broking Newgate, Investment Communications for Seeing Machines Robyn McConnachie Tim Thompson Lois Engstrand Tel: / Mob: Robyn.mcconnachie@newgatecomms.com Tel: / Mob: Tim.thompson@newgatecomms.com Tel: / Mob: Lois.engstrand@newgatecomms.com About Seeing Machines Seeing Machines, (AIM: SEE) is focused on operator monitoring and intervention sensing technologies and services. With more than 15 years of experience, Seeing Machines uses advanced detection and prevention safety assistance technologies to track eye and facial movement in order to monitor fatigue, drowsiness and distraction events, like microsleeps, texting and cell phone use as they occur, while providing for a real-time intervention strategy, which improves operator, driver and environmental safety, preserves assets, and reduces risk. Seeing Machines technology is used worldwide across the automotive, mining, transport and aviation industries; as well as many of the leading academic research groups and transportation authorities. Seeing Machines is headquartered in Australia and has offices in Tucson, Arizona, Mountain View, California and Santiago, Chile. The Company has strategic alliances with Caterpillar, TK Holdings and Eye Tracking Inc and counts companies such as BHP Billiton, Freeport McMoran, Toll Holdings and Boeing amongst its customers.
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