WPCS Closes on Sale of Australia Operations

WPCS Closes on Sale of Australia Operations 
Sale Settles $1.1 Million Severance Obligation as the Company's
Restructuring Plans Continue 
EXTON, PA -- (Marketwired) -- 08/01/14 --  WPCS International
Incorporated (NASDAQ: WPCS), which specializes in contracting
services for communications infrastructure and the development of a
digital currency trading platform, today announced that on July 31,
2014, the Company completed the sale of The Pride Group (QLD) Pty
Ltd., (the "Australia Operations"), to Turquino Equity LLC
("Turquino"), whose managing member is Andrew Hidalgo ( "Hidalgo"),
the former Chairman and CEO of WPCS. With the sale, the Company
eliminates its outstanding $1.1 million severance obligation to
Hidalgo.  
Sebastian Giordano, Interim CEO of WPCS, commented, "The sale of our
unprofitable Australia Operations falls in line with our
restructuring strategy and is another key step in our turnaround,
separating ourselves from a non-core business that was
underperforming and declining in value. We have now successfully
disposed two unprofitable operations in Australia and Trenton, while
settling the remaining $1.1 million severance obligation to Hidalgo
through this sale.  
The Company agreed to sell the Australia Operations to Turquino for a
purchase price of $1.4 million. At closing, the purchase price was
subject to adjustment based on the net tangible asset value ("NTAV")
of the Australia Operations, and the purchase price was to be settled
by applying the net after tax severance balance due Hidalgo as
payment towards the purchase price. At the closing, the parties
agreed that the closing NTAV of the Australia Operations was
$970,000. Hidalgo agreed to reduce the total severance owed to him
under his separation agreement by about $167,000 to $970,000, the
NTAV of the Australia Operations on the closing date. As a result,
the Company was not required to make any further payments to Hidalgo
pursuant to his separation agreement.  
Mr. Giordano continued, "We are now focused on closing on the sale of
the assets of our Seattle Operations, which will bring working
capital into the Company. This transaction is subject to shareholder
approval and is expected to close in August 2014." 
About WPCS International Incorporated
 WPCS operates in two business
segments inc
luding: (1) providing communications infrastructure
contracting services to the public services, healthcare, energy and
corporate enterprise markets worldwide; and (2) developing a digital
currency trading platform. For more information, please visit
www.wpcs.com, www.btxtrader.com and www.gocelery.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. 
INVESTOR CONTACT: 
Capital Markets Group, LLC
Valter Pinto
PH: (914) 669-0222 or (212) 398-3486
valter@capmarketsgroup.com 
 
 
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