Acro Intends to Acquire RAY Detection Technology Group

19 October 2007

Acro, Inc. has announced it has signed a non-binding letter of intent to acquire RAY Detection Technology Group (RAY) in an all-stock transaction. RAY, an Israel-based company, develops and provides advanced inspection and detection systems.

The parties agreed that upon the execution of a definitive agreement, Acro will provide RAY an interim financing, in accordance with an agreed working plan. Completion of the proposed acquisition is subject to a number of conditions, including completion of definitive documentation on terms satisfactory to the parties, due diligence, and the approval of the proposed acquisition by both companies’ boards of directors.

RAY’s products are based on a proprietary technology, Discovery CERT, enabling trace automated sampling of bulk goods and cargo for the detection of explosive, chemical, and biological threats. Discovery CERT streamlines high-volume screening in airports, seaports, rail stations, border crossings, and government buildings, among others, allowing rapid inspection of goods, ranging from a single bag to an entire cargo pallet.

RAY's systems have performed successfully during real-time airport testing, conducted by aviation, airport security, and anti-terror authorities of the US and Israel governments, with collaborative participation by European security agencies.

Acro’s current flagship product is ACRO-P.E.T., a pen-like peroxide explosive tester for the detection of improvised explosives. The company recently signed an agreement with LSRI – Life Science Research Israel Ltd., a subsidiary of IIBR – Israel Institute for Biological Research, to incorporate IIBR's technology into Acro's pen-like device, allowing the detection of commercial and military explosives.