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WPCS Announces Agreement to Sell Australia Operations

WPCS Announces Agreement to Sell Australia Operations 
EXTON, PA -- (Marketwired) -- 09/27/13 --   WPCS International
Incorporated (NASDAQ: WPCS), ("WPCS" or the "Company"), which
specializes in design-build engineering services for communications
infrastructure, today announced that it has entered into a definitive
stock purchase agreement for the sale of The Pride Group (QLD) Pty
Ltd., (the "Australia Operations") to Turquino Equity LLC
("Turquino"), for a purchase price of $1.4 million. Turquino's
managing member is Andrew Hidalgo, former Chairman and CEO of WPCS.  
At closing, the Company will settle the purchase price with Turquino
by applying the net after tax severance balance due Mr. Hidalgo under
his separation agreement, as partial payment towards the purchase
price of the Australia Operations, and the Company will receive cash
from Turquino for the difference between the purchase price and the
net severance balance due. The closing is anticipated for November 1,
2013 and is subject to certain conditions to be fulfilled prior to
closing, including the Australia Operations obtaining a fairness
opinion and WPCS shareholder approval, if required.  
Sebastian Giordano, Interim Chief Executive Officer, commented, "We
are pleased to enter into this agreement to sell the Australia
Operations, a non-core underperforming asset. For the fiscal year
ended April 30, 2013, the Australia Operations generated a net loss
of approximately $2.4 million, which included a goodwill impairment
charge of $1.9 million, while it most recently reported a net loss of
approximately $27,000 for the first quarter ended July 31, 2013. The
Company believes this transaction is consistent with ongoing efforts
to improve its financial results."  
About WPCS International Incorporated: 
WPCS is a design-build engineering company that focuses on the
implementation requirements of communications infrastructure. The
Company provides its engineering capabilities including wireless
communication, specialty construction and electrical power to the
public services, healthcare, energy and corporate enterprise markets
worldwide. For more information, please visit www.wpcs.com. 
Statements about the company's future expectations, including future
revenue and earnings and all other statements in this press release,
other than historical facts, are "forward looking" statements and are
made pursuant to the safe harbor provisions of the Private Securities
Litigation Reform Act of 1995. Such forward-looking statements
involve risks and uncertainties and are subject to change at any
time. The Company's actual results could differ materially from
expected results. In reflecting subsequent events or circumstances,
the Company undertakes no obligation to update forward-looking
statements. 
CONTACT:  
WPCS International Incorporated
610-903-0400 x104
ir@wpcs.com 
 
 
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