As GPS Expands to Asia, it’s Popularity Surges

Very recently GPS Industries announced the signing of its agreement for expanding sales in China with GPSI Asia, its exclusive distributor for Asian countries. A Master Supply Agreement for sales was made and confirmed. As China’s burgeoning domestic economy helps to further establish it as an upcoming world super power, the GPS market has been emerging on Chinese soil – just as has been the case with all tech markets. As a result of this, GPSi Asia and GPSI have decided to a set of terms which dictate that GPSi Asia will purchase at least 15 GPS systems, with the possibility of more still being an option, or up to 1750 MDU, or Inforemer HD Mobile Display Units.

To move the agreement along, GPSi Asia has already taken the step to advance a deposit to GPSI in order to start production of the first 5 systems the companies are looking to put into place, as well as to establish and obtain preferred pricing. Also in accordance with the Master Supply Agreement, GPSi Asia will submit purchase orders with a monetary value of up to $3.5 million in order to fulfill the outlines set by the MSA by the end of 2008.

The Master Supply Agreement for this increased expansion of the GPS service industry was signed in May of 2006, and it outlines a plan to bring GPS to a significantly large sector of the world. The usage of the Inforemer product in China through the specifications of this agreement will mean a huge customer expansion, and a heightened GPS experience worldwide as a result, as Chinese GPS customers engage and contribute to the global community. Asia has certainly proven its ability to compete in the global market in the last decade or more, with promise of a further strengthening economy in the coming future.

As a matter of full disclosure, GPSI is a small shareholder in GPSi Asia, as it owns 17.4% of GPSi Asia’s total common stock.

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