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CUI Global, Inc. Announces Intent To Acquire Privately Owned Natural Gas Technology Company Orbital-UK For 17.0 Million Pounds



   CUI Global, Inc. Announces Intent To Acquire Privately Owned Natural Gas
        Technology Company Orbital-UK For 17.0 Million Pounds Sterling

Synergistic Acquisition Expected to Speed Market Adoption of Vergence® GasPT2
Metering Device and Immediately Add Significant Accretive Revenue and Earnings
to CUI Global

CUI Global's Established Worldwide Distribution Network Expected to Fuel
Growth and Increase Visibility for Orbital-UK

PR Newswire

TUALATIN, Ore., March 6, 2013

TUALATIN, Ore., March 6, 2013 /PRNewswire/ -- CUI Global, Inc. (NASDAQ: CUI),
a platform company dedicated to the acquisition, development, and
commercialization of new, innovative technologies, today announced it has
signed a Shareholder Purchase Agreement ("SPA") to acquire 100% of the capital
stock of Orbital Gas Systems Limited ("Orbital-UK"), a United Kingdom-based
provider of natural gas infra-structure and advanced technology, including
metering, odorization, remote telemetry units ("RTU") and a diverse range of
personalized gas engineering solutions to the gas utilities, power generation,
emissions, manufacturing and automotive industries.

(Logo: http://photos.prnewswire.com/prnh/20120320/FL72629LOGO )

Effective upon completion of the acquisition, Orbital-UK will become a wholly
owned subsidiary of CUI Global.  Andrew Ridge will continue as the managing
director of Orbital-UK. William Clough will remain as president and CEO of CUI
Global, and assume the role of CEO of Orbital-UK.  CUI Global does not expect
any organizational changes to Orbital-UK's operations in the United Kingdom or
elsewhere.

  The Company will host a conference call to provide an overview of the
  transaction on Wednesday, March 6th at 11:00 am Eastern.  Interested parties
  may call: 877-407-8029 or access the call on the internet via:
   http://www.investorcalendar.com/IC/CEPage.asp?ID=170641

  A replay of the call will be available until April 6, 2013 by calling:
  877-660-6853 and entering Conference ID #:  410185

"We believe the acquisition offers significant synergies for revenue growth.
Orbital-UK's internationally recognized expertise in the natural gas industry,
including bringing together the patented VE-technology with the Vergence®
device from CUI Global offer natural gas operators/users a comprehensive
solution set for the next generation of energy metering systems," stated
William Clough, CUI Global's president & CEO. 

While the Vergence Technology allows the natural gas operator to quickly and
accurately obtain Calorific Value (CV), Wobbe Index (WI), Relative Density
(RD), and Compression Factor (Z) in less than three seconds; that analysis
takes place after an 8 to 10 minute delay in capturing the natural gas sample
from the pipeline.  The patented VE-Probe, on the other hand, allows the
sample to be obtained from the pipeline in less than two seconds. 

Combining the two technologies, allows for a packaged device that provides the
natural gas operator/user a complete energy analysis (from sample to results)
in less than five (5) seconds – a process that now takes from 12 to as much as
40 minutes – giving the operator the ability to obtain almost "real-time"
results simply unavailable from any other current technologies.

In addition, Orbital-UK's in-house engineering capabilities, manufacturing
relationships, and R&D infrastructure are expected to accelerate the adoption
of the Vergence device, while allowing the company to control all calibration,
packaging, delivery, engineering support and more within the Orbital-UK
facilities; thus allowing CUI Global to capture an even larger percentage of
operating margins from the final, packaged device.  Anticipated cost synergies
include leveraging existing sales and distribution infrastructure for
cross-selling opportunities.

The acquisition will also immediately add significant revenues and earnings to
CUI Global.  The SPA calls for purchase of all of the outstanding shares in
Orbital-UK and its subsidiary for a gross purchase price of £17.0 million. 
The transaction is expected to close by April 30, 2013, subject to customary
closing conditions, including regulatory approval.  The purchase is to be
funded in part by a future equity offering and available cash resources.

Orbital-UK's unaudited historical results for calendar year 2012 show that it
produced net income of approximately $3.1 million on gross revenues in excess
of $23.0 million.  An unaudited pro forma condensed combined statement of
operations for FY 2012 results in net earnings of $511,399 or $0.03 earnings
per share ("EPS") on gross revenues of more than $63.9 million.

With Orbital-UK's capabilities, reputation, and extensive contacts throughout
the natural gas industry, this acquisition allows CUI Global to speed up and
enhance the development and adoption of its proprietary Vergence Technology.
 In addition, Orbital-UK will be working to rapidly bring its natural gas
product line to a broader international market using CUI Global's market
partners and global distribution capabilities.

"This transaction effectively positions CUI Global for even more accelerated
growth," explained Clough. "Orbital-UK's talent base of technical employees
and their world-class engineering and support team, not to mention their
sterling reputation within the natural gas industry, will enable us to speed
market adoption of our Vergence GasPT2 device; while CUI Global's established
network of global distributors will allow Orbital-UK to market its broad
portfolio of natural gas products to a much larger audience."

"This is a very significant company milestone for Orbital," explained
Orbital-UK's managing director, Andy Ridge. "With the combination of these two
companies we will now be able to expand our programs and services for our
existing customer base, as well as pursue growth opportunities across a much
broader market.  As part of a global entity, we expect enhanced visibility in
the market and heightened awareness for our company offerings.  Further, the
addition of the Vergence GasPT2 technology to our current product line is
expected to increase our ability to penetrate new markets and thereby grow our
core business."

Since it was formed in 1984, Orbital-UK has focused its attention on providing
superior customer service, advanced technology solutions and a dedication to
product quality unequaled in the natural gas industry.  Orbital-UK's
customers, including National Grid (the national gas transmission company for
the UK), all of the UK's Gas distribution networks, and others such as Jaguar
Motor Cars, BMW, and more, have come to rely on its team of talented and
knowledgeable employees for crucial engineering support and specialized
knowledge.  Its value-added services and innovative products reduce the time
it takes to identify, design and begin cost effective delivery of new
technology to the natural gas and other industries.

"The acquisition of Orbital-UK, with the associated increase in revenues and
earnings, and the dramatic increase in our ability to penetrate the natural
gas market, while capturing even more operational margin, all combine to
further our strategy of making opportunistic, synergistic acquisitions of
either technology, personnel, or companies that will increase our growth and,
thereby, enhance our shareholder value – this transaction certainly
encapsulates all of those positive elements," Clough concluded.

About CUI Global, Inc.
Delivering Innovative Technologies for an Interconnected World . . . . .

CUI Global is a publicly traded platform company dedicated to maximizing
shareholder value through the acquisition and development of innovative
companies and technologies. From its Vergence GasPT2 platform targeting the
energy sector, to its subsidiary CUI Inc.'s digital power platform targeting
the networking and telecom industries, CUI Global has built a diversified
portfolio of leading technologies that touch many markets. As a publicly
traded company, shareholders are able to participate in the opportunities,
revenues, and profits generated by the products, technologies, and market
channels of CUI Global and its subsidiaries. CUI Global prides itself on
operating with the same level of integrity, respect, and philanthropic
dedication that was put in place by CUI Inc.'s founder more than 20 years ago.
It is these values that allow the company to make a difference in the lives of
its customers, its communities, and its employees. Recently, a move was made
to merge and streamline resources with its subsidiary CUI Inc. in order to
create a unified, international brand that now positions CUI Global for
further strategic expansion.

About CUI, Inc.

CUI, Inc. is a technology company dedicated to the development and
distribution of electro-mechanical products. Its broad power and component
product portfolios allow customers to address design challenges across a range
of industries and applications. Built on a solid foundation of core operating
principals, CUI seeks to maximize value for customers through their
engineering, manufacturing, and supply chain capabilities. As an industry
leader, CUI continues to invest in the future through new technologies,
talented employees, expanded manufacturing capabilities, and a growing global
reach.

For more information, please visit www.cuiglobal.com and www.cui.com.

About Orbital Gas Systems Ltd.

Orbital-UK is the largest natural gas systems integrator in the U.K. and is a
key partner of CUI Global for commercializing its Vergence® GasPT2 device. For
over 25 years, Orbital has developed its portfolio of products, solutions,
services and resources to offer a diverse range of personalized gas
engineering solutions to the gas utilities, power generation, emissions,
manufacturing and automotive industries. 

For more information, please visit www.orbital-uk.com.

Important Cautions Regarding Forward-Looking Statements
This document contains forward-looking statements within the meaning of
Section 27A of the Securities Act of 1933, as amended, and Section 21E of the
Securities Exchange Act of 1934, as amended. Forward-looking statements,
including statements regarding the company's pending acquisition of
Orbital-UK, the integration of Orbital-UK, the anticipated financial results
of the combined company and the combined company's anticipated marketing and
sales efforts, are all subject to risks and uncertainties that could cause
actual results to vary materially from those projected in the forward-looking
statements. The company may experience significant fluctuations in future
operating results due to a number of economic, competitive, and other factors,
including, among other things, our reliance on third-party manufacturers and
suppliers, government agency budgetary and political constraints, new or
increased competition, changes in market demand, completion of the pending
acquisition of Orbital-UK and the successful integration of the two
businesses, and the performance or reliability of our products. These factors
and others could cause operating results to vary significantly from those in
prior periods, and those projected in forward-looking statements. Additional
information with respect to these and other factors, which could materially
affect the company and its operations, are included in certain forms the
company has filed with the Securities and Exchange Commission, including the
most recent annual report on Form 10-K.

 

SOURCE CUI Global, Inc.

Website: http://www.cuiglobal.com
Contact: CUI Global, Inc., Media Contact, Maggie Lefor, +1-503-612-2300,
press@cuiglobal.com; or Investor Relations, CUI Global, Inc., +1-503-612-2317,
investors@cuiglobal.com; or Outside IR contact, BPC Financial Marketing, John
Baldissera, 800-368-1217
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