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[March 09, 2005]
GBP 2.1 billion claim for breach of contract lodged against SmartVideo Technologies, Inc.
LONDON --(Business Wire)-- March 9, 2005 -- SmartVideo Europe Limited (SVEL) announce their intention to take legal action against SmartVideo Technologies, Inc (SMVD) in regard to SMVD's repudiatory breach of a 10-year Distribution Agreement (the Agreement) dated 2nd April 2004.
The Agreement enabled the development of a business utilising the SMVD technology on an exclusive basis throughout 25 countries forming the European Union (EU). SVEL devoted considerable time, energy and expense to establishing themselves in London and the EU.
In January 2005, following a press announcement outlining SVEL's achievements and plans for 2005, representatives of SVEL attended the CES in Las Vegas to meet with Richard Bennett, CEO of SMVD, to discuss the announced developments.
It was immediately apparent that Richard Bennett had no intention of discussing any aspect of SVEL's progress. He announced that SMVD would no longer abide by the Agreement, the deal was off and SVEL could sue SMVD. SMVD subsequently denied SVEL access to SMVD's technology.
SVEL lawyers have made several approaches to SMVD to resolve the situation. SMVD have not responded.
The Hon. Charles Balfour, Chairman of SVEL, former CEO of NASDAQ International, said:
"I am shocked by Mr Bennett's lack of professional etiquette and outraged by the damage done to our business by SMVD. We are now forced to litigate against SMVD to recuperate our losses and damages."
SVEL have lodged a GBP 2.1 billion claim against SMVD and notified the Board of Directors of SMVD and SMVD's Advisory Board.
Based on the latest SMVD 10Q filing, a decision will be made to approach the SEC in order to halt trading in the company's shares, currently listed on OTC (Symbol: SMVD).
It is understood private subscribers to a placement for shares in SMVD during 2004, have not received documentation, share certificates or a refund, as requested from Ron Warren, SMVD VP, Corporate Communications & Investor Relations. Richard Bergner, Houston-based attorney, has been appointed to represent such subscribers. He will contact SMVD for clarification. To be included in this action contact Mr Bergner at: -0- *T 5718 Westheimer Suite 700 Houston, Texas 77057 United States of America Email: firstname.lastname@example.org Phone: 001-713-783-4832 Fax: 001-713-783-2502 *T
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