TEO Tecteon

RNS Number:7976U
Tecteon PLC
29 November 2005


                                  TECTEON PLC

           Joint venture agreement with Clement Clarke Communications

                                Qstik PLC formed

Tecteon PLC (http://www.tecteon.com), a leading provider of voice quality,
comfort listening and hearing protection technologies and solutions, and Clement
Clarke Communications Limited (C3) (http://www.c3headsets.com) announce the
formation of a new joint venture company called Qstik PLC.

Qstik PLC is a technology development and manufacturing company with two major
functions: 1) To develop DSP-based military-grade voice enhancement technologies
and solutions, and 2) To develop and manufacture a range of digitally-enhanced
voice communication products for the business to business and mass consumer
electronics markets. The key objective for Qstik is to offer high quality
DSP-based voice-related products for the military, business and consumer market
that incorporate state-of-the-art "military-grade" technologies developed by
Tecteon.

Tecteon will have a 20% shareholding in Qstik, with Clement Clarke holding 60%
of the remaining shares. The balance of the shares is held by Amir Nooral,
Masoud Ahmadi (the Managing Director of Tecteon) and other directors of Qstik
PLC.

Qstik aims to launch its first product in the spring of 2006. The product will
incorporate Tecteon's highest quality adaptive noise reduction, audio shock
protection and speech enhancement algorithms, driven by the latest DSP (Digital
Signal Processing) technology and will be aimed at improving communications in
the mobile sector. Further products will follow, aimed at improving voice
communication within the telephony and speech recognition markets.

Under the terms of the agreement, in addition to porting and customisation fees,
Qstik will pay licencing fees on standard commercial terms for the use of
Tecteon technologies and solutions. The commercial arrangements between Qstik
and Tecteon for licensing Tecteon's technologies have been agreed in principle
and will be announced accordingly in due course. Given C3's well established
market position within the military sector, it is agreed that Qstik will have an
exclusive license to Tecteon technologies for the development of DSP-based
military products only.

As part of the deal with C3, the Chief Executive of Tecteon, Amir Nooral, is to
step down from Tecteon with immediate effect to join the new company as a
Director. While remaining as consultant to Tecteon, Amir will be responsible for
the technical strategy and direction of Qstik, as well as leading the
engineering and product development of the new company. It has also been agreed
that Tecteon's Managing Director, Masoud Ahmadi will also become a director on
the board of Qstik PLC. Tecteon will be recruiting a Sale Executive to lead the
commercial efforts of the company to fully exploit the identified market
opportunities under Tecteon's existing business model.

Mark Lyon, Managing Director at C3 stated:

"Clement Clarke Communications believe in the Tecteon technology and we view the
formation of Qstik as the best way to drive this element of our business
forward. Qstik will focus on integrating Tecteon technology into mass market
products for both the consumer and military markets. Qstik has an opportunity to
grow into a large mass market business in a very short time frame."

Masoud Alikhani, Chairman of Tecteon, commented:

"This is an excellent opportunity for Tecteon to expand its markets into the
military as well as the consumer sector. It also shows C3's confidence in our
technology. We have agreed that as part of the agreement Amir is to join the
joint-venture as we feel that Amir's expertise and experience of the consumer
market products and good overall knowledge of the industry will be best utilised
in growing the new company which has huge potential from which we will benefit."

"This is an excellent deal for Tecteon since we will receive 20% of the profits
of the joint venture in addition to the development fees and our standard
licensing fees. This agreement with C3 offers Tecteon another avenue to market
in addition to the opportunities it is currently progressing. We are confident
that Qstik will become a substantial business in its own right."

                                                              29th November 2005

For further information please contact:

Tecteon PLC                                                   Tel: 020 8446 5005
Masoud Alikhani, Chairman

Bankside Consultants                                          Tel: 020 7367 8888
Michael Padley/Susan Scott


Editors' Note

About Tecteon PLC

Established in mid 2001, with its head office in London, UK, Tecteon PLC
develops and markets voice enhancement software technologies and algorithms
running on a range of DSP platforms. Tecteon technologies provide voice quality,
comfort listening and hearing protection in wired and wireless voice
communication systems, ranging from peripheral devices to telecom infrastructure
equipment, examples include: Headsets (call centre, personal, police, pilots,
military, fire-fighters), telephony (business, SMEs, residential), switches
(PSTN, soft-switches, gateways), digital mobile radios, mobile
phones, hands-free kits and AV conferencing units.

About Clement Clarke Communications

Clement Clarke Communications has been designing, developing and manufacturing
headsets for over sixty years. The MOD, NATO, airlines, air traffic control and
emergency services around the world rely on the quality, reliability and
technological advancement that Clement Clarke Communications represents.

In recent years, this unique heritage has enabled us to create a range of call
centre headset solutions that combine the latest communications technologies
with the reliability and durability that has always been our hallmark.

ENDS



                      This information is provided by RNS
            The company news service from the London Stock Exchange

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