ORBCOMM Acquires Euroscan, Europe’s Leading M2M Provider of Refrigerated Transportation Solutions

  ORBCOMM Acquires Euroscan, Europe’s Leading M2M Provider of Refrigerated
  Transportation Solutions

   Expands ORBCOMM’s leadership in cold chain and establishes distribution
                 channel for all ORBCOMM solutions in Europe

Business Wire

ROCHELLE PARK, N.J. -- March 12, 2014

ORBCOMM Inc. (Nasdaq: ORBC), a global provider of Machine-to-Machine (M2M)
solutions, today announced that it has completed the acquisition of Euroscan
Holdings, B.V. (Euroscan), a leading global supplier of refrigerated
transportation temperature compliance recording systems. Based in the
Netherlands, Euroscan’s integrated turn-key systems are used worldwide to
ensure the safe and secure transportation of food and pharmaceuticals by
monitoring and assuring temperature compliance throughout the supply chain.
Terms of the acquisition will be available in subsequent public filings.

Euroscan’s temperature recorders enable its customers to comply with the
European cold chain temperature and food safety regulations and gain
significant operating advantages and efficiencies. Over the past few years,
Euroscan began transitioning its recording product suite to an M2M wireless
solution and sells wireless adaptor products that allow them to convert their
large installed base of recording products to wireless telematics
solutions.Today, Euroscan has a worldwide installed base of 200,000 recording
units of which approximately 10,000 are wireless subscribers. Euroscan
generates a large portion of its business through Original Equipment
Manufacturer (OEM) factory installs of its temperature monitoring products on
refrigerated assets, trucks and trailers. The demand for telematics services
to enable refrigerated transportation monitoring has fueled rapid expansion of
Euroscan’s wireless solutions business.

This acquisition supports ORBCOMM’s long-term growth strategy of adding
vertical expertise, technologies and geographic markets to strengthen its
end-to-end solutions portfolio. ORBCOMM will leverage Euroscan’s distribution
channels in Europe to increase market expansion of ORBCOMM’s suite of M2M
products and services in key industries such as transportation and heavy
equipment. In addition, ORBCOMM expects that the scale and diversity of its
global M2M solutions portfolio will drive growth for Euroscan’s distribution
channels in the Far East, South America and South Africa.

As part of this transaction, Ameriscan, Euroscan’s North American subsidiary
and a leading provider of temperature monitoring devices, will add scale and
an expanded portfolio of cold chain monitoring services that will complement
ORBCOMM’s North American transportation operations.

“The acquisition of Euroscan allows ORBCOMM to complement its North American
leadership position in M2M solutions by adding a significant distribution
channel in Europe and other key geographies where Euroscan has market share,”
said Marc Eisenberg, Chief Executive Officer of ORBCOMM. “By leveraging
Euroscan’s suite of powerful asset monitoring, control technology and M2M
solutions, ORBCOMM will be able to provide an even greater level of value,
service and return on investment for a broader set of customers in the global
M2M market.”

The management team at ORBCOMM will discuss the details of this transaction on
the company’s earnings call on Thursday, March 13 at 10:30 am ET. Please see
ORBCOMM’s earnings announcement for call-in information.

ORBCOMM was advised by Near Earth LLC on this transaction.

About ORBCOMM Inc.

ORBCOMM is a global provider of Machine-to-Machine (M2M) solutions. Its
customers include Caterpillar Inc., Doosan Infracore America, Hitachi
Construction Machinery, Hyundai Heavy Industries, I.D. Systems, Inc., Komatsu
Ltd., Cartrack (Pty.) Ltd., and Volvo Construction Equipment, among other
industry leaders. By means of a global network of low-earth orbit (LEO)
satellites and accompanying ground infrastructure as well as our Tier One
cellular partners, ORBCOMM’s low-cost and reliable two-way data communication
services track, monitor and control mobile and fixed assets in our core
markets: commercial transportation; heavy equipment; industrial fixed assets;
marine; and homeland security.

ORBCOMM is an innovator and leading provider of tracking, monitoring and
control services for the transportation market. Under its ReeferTrak^®,
GenTrak^TM, GlobalTrak^®, and CargoWatch^® brands, the company provides
customers with the ability to proactively monitor, manage and remotely control
their cold chain and dry transport assets. Additionally, ORBCOMM provides
Automatic Identification System (AIS) data services for vessel tracking and to
improve maritime safety to government and commercial customers worldwide.
ORBCOMM is headquartered in Rochelle Park, New Jersey and has its network
control center in Dulles, Virginia. For more information, visit
www.orbcomm.com.

Forward-Looking Statements

Certain statements discussed in this press release constitute forward-looking
statements within the meaning of the Private Securities Litigation Reform Act
of 1995. These forward-looking statements generally relate to our plans,
objectives and expectations for future events and include statements about our
expectations, beliefs, plans, objectives, intentions, assumptions and other
statements that are not historical facts. Such forward-looking statements,
including those concerning the Company’s expectations, are subject to known
and unknown risks and uncertainties, which could cause actual results to
differ materially from the results, projected, expected or implied by the
forward-looking statements, some of which are beyond the Company’s control,
that may cause the Company’s actual results, performance or achievements, or
industry results, to be materially different from any future results,
performance or achievements expressed or implied by such forward-looking
statements. In addition, specific consideration should be given to various
factors described in Part I, Item 1A. “Risk Factors” and Part II, Item 7.
“Management’s Discussion and Analysis of Financial Condition and Results of
Operations,” and elsewhere in our Annual Report on Form 10-K for the year
ended December 31, 2012, and other documents, on file with the Securities and
Exchange Commission. The Company undertakes no obligation to publicly revise
any forward-looking statements or cautionary factors, except as required by
law.

Contact:

Investor Inquiries:
ORBCOMM Inc.
Robert Costantini
Chief Financial Officer
703-433-6305
costantini.robert@orbcomm.com
or
Financial Media:
The Abernathy MacGregor Group
Chuck Burgess
President
212-371-5999
clb@abmac.com
or
Trade Media:
Hardman Group
Chelsey McGrogan
Account Manager
330-285-1817
chelsey@hardmangrp.com
 
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