CUI Global Signs $40M Agreement for North American Distribution Rights of its Vergence™ GasPT2 Metering Device

CUI Global, Inc.

today announced it has signed a non-exclusive agreement with Energy Measurement Consulting LLC (EMC) out of Houston, Texas for North American Sales of its Vergence™ GasPT2 natural gas metering device. Among other provisions, the agreement places significant minimum annual order requirements on the Distributor. Under the terms of the agreement, EMC commits to selling, at a minimum, approximately 2,000 units, valued at between $40,000,000 and $50,000,000 over the five-year term. The agreement further calls for EMC to make an initial purchase of 150 units, valued at $2,500,000, for delivery in 2012. The Vergence GasPT2, designed by GL Industrial Services (GL) and exclusively licensed worldwide to CUI Global, provides a low cost solution to measure gas quality. When connected to a natural gas system, the GasPT2 provides a fast, accurate, close to real-time measurement of physical gas properties such as thermal conductivity, speed of sound and carbon dioxide content. From these measurements the device infers an effective gas mixture comprising five components: methane, ethane, propane, nitrogen, and measured carbon dioxide and then uses ISO6976 to calculate, among other things, the gas quality characteristics of calorific value (CV), Wobbe index (WI), relative density (RD), and compression factor (Z).