AZCAR Technologies Incorporated

Originally incorporated in February 1975 as IMMAD Broadcast Services Limited, the company changed its name to AZCAR Technologies Incorporated after completing the amalgamation with Trintronics Limited and Distributed Database Systems Limited during June 1981. AZCAR is an independent media system integration company providing telecast and telecommunications industries, broadcast ministries, higher education institutions, and multi-purpose sports and entertainment venues with conceptual solution design, detailed systems engineering and integration, project management, as well as related equipment, software and materials. AZCAR and its predecessor companies based in Canada, the United States, the United Kingdom, Barbados and New Zealand, have completed projects across North America, the Middle East, South Africa, Dominican Republic, Panama, Puerto Rico, and Fiji, ranging from small updates of existing systems to complete turnkey broadcast system developments. The company’s goal is to select the best technology solution from a wide range of potential options for the specific application that reflects client and project objectives, schedules and financial constraints.

Operations

AZCAR’s competitive advantage is derived from its employees’ knowledge and skills in the areas of both studio and transmission facilities, and in particular, the staffs’ ability to integrate equipment from multiple manufacturers into a complete broadcast system. During the provision of these integration services, the company is frequently contracted to design and fabricate custom panels, circuits, and software to allow for the interconnection of the various components from different manufacturers. While a majority of the electronic parts built into AZCAR’s broadcast solutions are supplied by third parties, the company does produce several proprietary products including signal monitoring and alarm systems, signal amplifiers, custom televisions, and access control systems.

Industry Trends

Advances in broadcasting technology have resulted in movement away from traditional uni-directional analoguebased delivery systems to bi-directional digital delivery systems that incorporate advanced data compression and increasingly faster terrestrial and satellite-based networks. According to AZCAR, the U.S. Federal Communications Commission (FCC) mandated that all television stations in the nation convert from analog signal transmission to digital by December 2006. In addition to regulatory demands, competitive pressures are forcing a majority of the more than 1,600 television broadcasters in the U.S. to upgrade facilities. Digital technologies enable broadcasters to provide high definition television with twice the picture resolution of traditional televisions, CD-quality surround sound, and to transmit multiple programs simultaneously over a signal channel. In order to realize the benefits of digital TV, broadcasters must develop programming using digital components throughout the facilities, from camera to cabling, to editing and storage equipments, to routers and switches, and to transmitters and antennas.

Agreement with Fox

During May 2006, AZCAR entered into a $3 million contract with Fox Network Engineering and Operations (NE&O) for the systems design and integration of its new Fox Network Centre-Houston (FNC-H), the operations and transmission centre for the Fox cable networks located in Houston, Texas. As a key component of this contract, the company has been asked to help Fox NE&O develop new Fox CAD drawing standards, intended for use throughout Fox television engineering. Under the terms of the agreement, the project is scheduled for completion in late 2007 and the FNC-H will include satellite and terrestrial program content acquisition, 28 master control rooms with provision for significant future expansion, plus five multicast master control rooms, transmission operations control room, network management control room, and graphics generation.

Cox Broadcasting Contract

During mid-May 2006, Cox Broadcasting Company, a major television and radio group owner, selected AZCAR for the design, equipment procurement and technical construction of an entirely new studio facility and digital media centre for WPXI and Pittsburgh Cable News Channel (PCNC) in Pittsburgh, Pennsylvania. WPXI is an affiliate of the NBC network and PCNC is a news channel produced by WPXI staff for cable-only distribution in the Pittsburgh area. The WPXI studio facilities will incorporate the latest digital software and hardware innovations for television origination and distribution. Presently, AZCAR is also working with Cox engineers at Cox’s other stations to help develop an overall technology plan for the group’s 15 stations.

Contract with NFL Network

During June 2006, AZCAR was awarded an integration contract by National Football League (NFL) Network for the upgrade and expansion of its facilities in Culver City, California. The project is scheduled for completion in October 2006 and major upgrades will include large NVision video and audio routers, Song HD cameras and MVP switchers, expanded NLE editing rooms, and two additional video and audio control rooms with Wheatstone D 5.1 audio consoles. Management states that the additional sound stage, control rooms, editing and graphics will allow greater flexibility for NFL Network to increase its offerings in both quality and quantity.