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EXHIBIT 99.1
Home Security International Inc. reports completion of Sale of 49% of Ness
Security and Retail Consumer Support Agreement.
Sydney, Australia, Friday, 22 December 2000. - Home Security International, Inc
(Amex: HSI) announced that it had completed the sale of 49% of its subsidiary,
Ness Security Products Pty Limited ("Ness") to HIH Insurance.
The completion of the previously announced sale of 49% of Ness will reduce the
Company's debt by AUD $13 million in relation to:
a) The FAI note representing vendor finance for the Company's purchase of FAI
Finance Corporation Pty Limited in 1997, and
b) Short term financing provided by HIH Insurance.
The Company has received the AUD $4.5 million cash component due under the sale
agreement. A further AUD $2.5 million in cash will be received by the Company in
January 2001.
FAI Finance Corporation ("FFC"), a wholly owned subsidiary of HIH Insurance, has
agreed to provide the Company with retail consumer finance support to a limit of
AUD $100 million. The completion of this agreement maintains and confirms the
Company's access to a relationship that will facilitate the continued finance of
its security package in Australia. The completion of the above transaction will
facilitate a lump sum payment to the Company of approximately AUD $2.7 million
in cash by FFC relating to the terms of the facility.
The Company also reported that it had recommenced discussions with a major
corporation within the security industry in relation to forming a strategic
alliance within the residential security market. There is no assurance that any
alliance will be made.
The Company is continuing in its efforts to consolidate its operations and
reduce overhead. As part of this consolidation process the Company has moved its
operations to premises leased by its 51% owned subsidiary, Ness, in Sydney
Australia. The Company expects its operating losses to continue.
HSI has included forward-looking statements concerning its business in this
press release. These forward-looking statements are subject to certain risks and
uncertainties including those contained in the Form 10-Q dated 14 November 2000,
that could cause actual results to differ materially from those projected. Home
Security International, Inc. expressly disclaims any obligation to release
publicly any updates or revisions to such forward-looking statements to reflect
any change in expectations.
