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Gatekeeper Systems Provides Corporate Update

      • 40% annual increase in overall systems sold
      • $700,000 CDN in new High-Definition System Sales
      • Launch of Body-Cameras and Evidence Management
      • Signed Strategic Reseller Agreement with SunGard
      • Closed $1.97 Million Non-Brokered Private Placement

Abbotsford, BC September 23, 2015 – Gatekeeper Systems Inc. (“Gatekeeper” or the “Company”) (TSX.V: GSI; OTC: GKPRF; FSE: 1GK) is pleased to provide an update to shareholders regarding the recent developments of the Company as well as growth and goals anticipated for the coming year.

To date, Gatekeeper has executed on its business plan and achieved its milestone targets. Gatekeeper showed a 40 percent increase in overall mobile video systems sold to 224 customers enhancing top line growth. Solid sales results can be attributed to the significant demand for the Company’s products in its base business including school buses, transit buses, law enforcement vehicles and military aircraft.  Customer requirements for streamlining video management drove more interest and sales for the Company’s wireless features including WIFI and live streaming of video over 3G and 4G cellular networks.

To grow and expand sales levels, the Company is focused on a combination of direct and strategic sales targets, strategic alliances and the strategic integration of Gatekeeper products with leading mainstream software companies that provide solutions to end user customers. Examples of these strategies include targeting the world’s largest software companies and system integrators in an effort to provide unique product solutions aimed at the public safety markets.

The Company is focused on three core growth areas, including the transition of analog cameras to high-definition, the stop-arm camera recurring revenue model, and the body-camera market as a total end-to-end integrated solution.

High-Definition Product Activity

During the most recently completed fourth quarter ended August 31, 2015, 11% of the Company’s total sales were high-definition orders successfully executing on 100% of the customers Gatekeeper presented to.  All customers continue to choose Gatekeeper high-definition systems over competitors’ traditional products primarily due to superior video quality, scalable features, AUTOWAKE™, WIFI downloading capability, expandable 3G and 4G live streaming, and ability to integrate with third party software applications. Initial high-definition pre-launch orders received in July and August totaled approximately $700,000 CDN.

The Company is planning a North American wide marketing program this Fall, including the entire family of high-definition mobile video systems ranging from five to twelve cameras.  The Company’s entry-level high-definition product is small enough to fit in the palm of a hand, providing customers with flexibility where space is at a premium.  The high-definition systems range from solid-state with dual SD card storage capability to two terabytes of storage for 12 camera systems.  The entire family of high-definition systems come full featured, capable of live streaming video over 3G and 4G cellular networks.  A common incident management software application allows customers to scale from a five-camera to twelve-camera system without changing the software application; thus reducing training and saving customers valuable time. 

The transition of analog video to high definition video in the fixed site security market is estimated at 20 percent.  Gatekeeper estimates the mobile market to be less than one percent high definition cameras with the balance being analog. 

The Company has also finalized the testing phase of its new military standard high-definition recorder for homeland security and defense aerospace market, and finalized the design of its high-definition multi-lane license plate reading system. The Company’s VIPERFISH® digital recorder is used by the United States Air Force on the AC-130 Gunships.  The new high-definition airborne recorder will interphase with high-definition sensors such as Wescam’s MX10 and MX20.  The new high-definition recorder will meet military standard requirements for electromagnetic interference, explosion resistance and various environmental requirements will allow the Company to target new Gunships and other military aircraft.  The multi-lane license plate reading system with stop-arm auto detection capability will  give the Company a scalable solution for school districts operating their buses on multi-lane highways where stop arm violation incidents are high.

Stop-Arm Recurring Revenue Activity

Gatekeeper’s stop-arm camera technology, including the STUDENT PROTECTORTM high-speed license plate reading system, designed for school buses to record stop arm violations, has been receiving national press coverage over the last 12 months.  Together, with new legislation in several States which allows school bus surveillance video to be used as evidence for stop-arm violation citations, this national press coverage has resulted in significant interest from school districts and bus contractors across North America.

Gatekeeper’s total solution eliminates the need for reliance on third party software to provide the end-to-end solution.  Ownership of Student ProtectorTM equipment, and TIMTM (Traffic Infraction Management), a proprietary software application, remains the property of Gatekeeper, thereby providing a zero capital cost solution to school districts while enabling them to share in stop-arm violation ticket revenue.  Fines typically range from USD $250 to $500.

During the past six months Gatekeeper has been in discussions with twenty-three school districts, representing approximately 4,000 school buses, to install a complete and fully-functioning stop-arm camera system for a specified period (the “Evaluation Phase”), subject to receipt of signed demo agreements.  The Evaluation Phase enables school districts to verify the quality of Gatekeeper’s Student ProtectorTM technology, as well as monitor the number of stop-arm violations experienced, prior to entering into a contract.

The Company currently has fourteen school districts in the Evaluation Phase, representing 975 school buses, and is hopeful that it will be awarded contracts following the completion of the Evaluation Phase.  Early indications from the results of the Evaluation Phase show an average incident rate of 1.5 stop-arm violations per day, per bus.

The National Association of State Directors of Pupil Transportation Services ( NASDPTS ) released its annual projection for stop arm violations.  During a one day count 78,513 illegal passes occurred.  It is estimated over 14 million stop arm violations will occur this coming year.

Body-Camera Market

The Company launched its body camera, docking station and evidence management software targeted to smaller agencies.  It’s an easy to use system for law enforcement agencies that lack IT resources.  The system is scalable for larger agencies with Gatekeeper’s vision to create unique products by way of full integration to the operation backbone such as Computer Aided Dispatch and Business Record Management systems.  Gatekeeper sees its evidence management solution being fully integrated with in-car video systems, cell phone video, CCTV video and broadcast video. 

The Company is also targeting best-in-breed software companies to provide unique product offerings for its partners resulting in end-to-end integrated solutions.  An example is the Company signing a strategic reseller agreement with SunGard Public Sector, an indirect subsidiary of SunGard, one of the world’s leading software and technology services provider with approximately USD $2.8 billion dollars in annual revenue.  Public safety and justice agencies use SunGard Public Sector solutions to manage emergency dispatch operations, citizen and incident records, mobile computing in the field and operations of courts and jails. More than 115 million citizens live in communities that are supported by SunGard Public Sector products and services. Gatekeeper has entered into final discussions with another leading software company that provides license plate sensor and processing systems as well as facial recognition software to approximately 2,800 law enforcement agencies in North America.

As stated in the Washington Post by Jim Bueermann, President of the Police Foundation in Washington, “Within the next five years or so, body-worn cameras will be as ubiquitous in the world of policing as handcuffs, the police radio, and the gun.”

The Company estimates approximately 30 million law enforcement officers and security personnel could be wearing body cameras in the next five years.

Corporate Activity

During the last several months, the Company has travelled to and presented to investment groups in New York, Europe, Toronto, Montreal, Vancouver and the Okanagan to increase awareness of the Company. With a new US and Frankfurt listing, combined with the commencement of an investor relations agreement with Skanderbeg Capital Advisors, the Company is actively engaged in educating investors about Gatekeeper’s vision. 

Since the closing of the recent private placement in July 2015, the company is in the process of expanding   its sales and engineering team to include new software engineers, sales engineers and sales people.

In August 2015, the Company entered into a strategic reseller agreement with SunGard Public Sector Inc. to promote company’s body-camera and evidence management solution to their law enforcement customer network. The Company is planning a joint marketing and product launch of Gatekeeper’s body-camera and data management system scheduled for October 24th at the International Chiefs of Police Conference located in Chicago, Illinois.

Doug Dyment, President and CEO commented, “This is a very exciting time for us as we prepare for growth in the three core areas of our business.  All facets of our business are showing positive results as we continue to aggressively push forward in an effort to make the next fiscal year Gatekeeper’s best year in the Company’s history.”

For more information please contact:

Skanderbeg Capital Advisors Inc.

Contact: Mario Vetro
E: This email address is being protected from spambots. You need JavaScript enabled to view it.
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Tel: 604.687.7130 x 105

Cel: 778.846.9970 

About Gatekeeper Systems Inc.

Gatekeeper provides innovative, end-to-end video safety and security solutions for mobile applications including body cameras, in-car police video systems, school bus video and stop arm camera video enforcement systems, transit bus video systems, and airborne digital recording systems for military applications.

The Company is headquartered in Abbotsford, British Columbia, Canada, and its shares are traded on the TSX Venture Exchange under the symbol “GSI”, on the OTC Markets under the symbol “GKPRF”, and on the Frankfurt Stock Exchange under the symbol “1GK”.

For more information visit: www.gatekeeper-systems.com

On behalf of the Board,
Douglas Dyment
President and Chief Executive Officer
Phone: 1 (888) 666-4833
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2015-09-23 -NR – Gatekeeper Systems Provides Corporate Update

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