KLGG Klegg Electronics Inc (CE)

Klegg Electronics, Inc. (Pink Sheets: KLGG) has signed a master distribution and strategic alliance agreement with Fremont, CA-based Ximeta, Inc. Under the agreement, Klegg will acquire the Netdisk product line, and will generate sales by selling to existing NetDisk customers and by marketing to new customers. The NetDisk product line features NDAS technology, an innovative way to store data directly on a local area network without the need for a PC. A NetDisk can attach directly to a switch or home router allowing every computer and NDAS-enabled device in an office or home to access data at speeds of up to 10 times faster than that of other NAS (Network Attached Storage) devices. Users do not have to know how to map a drive or have any network experience at all. All it takes is simply installing the drivers on your system and the NetDisk appears as a local hard drive on the PC, as well as on all other configured devices on the network. Klegg Media Center TV users will now have the ability to easily and effortlessly save recorded TV, movies, music, and media directly to a Klegg NetDisk on the network. One of the additional benefits for Klegg Media Center TV and Klegg NetDisk users is that they will never have to worry about running out of disk space since additional NetDisk drives can continually be aggregated for virtually unlimited storage. In addition, data security is ensured due to the NetDisk�s mirroring and raid 5 features. Lastly, several Media Center TVs will have the ability to share the same central pool of media, each using the NetDisk as a local resource. Since 2004, Ximeta has been selling the NetDisk product line to existing customers including Fry�s, Circuit City, Best Buy, and Office Depot. In 2006, Ximeta generated over $3.5 million in U.S. sales for the NetDisk products alone. Based on current orders that Klegg is now responsible for fulfilling, Klegg expects to generate over $5 million in sales by year end from the NetDisk product itself. Klegg will also begin using these pre-established vendor relationships to market the current Klegg Genesis product line. More than representing simply the sale of the NetDisk product line, the agreement represents a major partnership and business alliance between both companies. Klegg will immediately begin to integrate NDAS technology into its existing product line, as well as begin working with Ximeta to introduce new NDAS-enabled products into the market. Though Klegg will be responsible for the sales, marketing and manufacturing of the NetDisk product, they will continue to purchase the actual NDAS chipset directly from Ximeta. We are thrilled to welcome the NetDisk product line into the Klegg family of products. The incorporation of NDAS technology reaffirms Klegg�s continued vision of seamless integration and convergence of cutting-edge electronic technology into consumer electronic products, computers, home networks and the convergence of these. Dennis Gentles, CEO of Klegg Electronics, explains, �The centralizing of data within the home, via wired or wireless technology, to a wide-variety of consumer devices at super high speeds, is key to Klegg�s integrated smart home strategy.� Han Gyoo Kim, Ximeta, Inc. CEO says, �It�s Ximeta�s mission to bring the best networked storage to homes and workplaces where HD-like multimedia data plays a major role in servicing the needs of users. Our alliance with Klegg brings real synergy to both companies: Ximeta will focus on developing cutting-edge NDAS technologies and Klegg will enrich its multimedia CE products by integrating NDAS into their already successful product lines.� For more information about Klegg Electronics, go to www.klegg.com About Klegg Electronics, Inc. Klegg Electronics, Inc. (Pink Sheets:KLGG) (Formerly Pink Sheets:KLGE) is a manufacturer and distributor of high quality consumer electronics. Klegg Electronics has focused on designing a variety of products that work seamlessly together within the home. The corporation is headquartered in Las Vegas, NV. About Ximeta, Inc. Ximeta is the pioneer of Network Direct Attached Storage (NDAS) technology. Using patented chip and software technology, Ximeta offers the industry's first high-performance, fully scalable and portable networked storage solutions for consumer and SOHO needs. The company focuses on the growing trend toward networked information storage, in which storage systems are linked on a network via Ethernet. Ximeta's vision is to enable people to enjoy, access, store, and share all of their digital content from any networked device, such as their PC, laptop, PDA, media player, home entertainment centers, TVs, etc. Ximeta�s Headquarters are in Fremont, CA, USA. The Company also maintains R&D centers in Fremont CA, USA and Seoul, Korea. www.ximeta.com Safe Harbor Statement This press release contains forward-looking statements within the meaning of the federal securities laws, including, without limitation, statements regarding the following: the reverse stock split and the impact and effects of the reverse stock split of Klegg Electronics are based on management�s expectation at the time they are made. Where possible, the company has tried to identify these forward-looking statements by using words such as �anticipates,� �believes,� �intends,� or similar expressions. These statements are subject to a number of risks, uncertainties and other factors that could cause actual events or results in future periods to differ materially including, without limitation, the following: the failure of the reverse stock split to adjust the market price of Klegg�s common stock; the failure of the reverse stock split to attract new investors; Klegg�s ability to successfully develop and introduce new products; possible delays in the products and technologies developed; the failure of the reverse stock split to contribute to the creation of shareholder value; Klegg�s ability to compete with existing and future competitors; the ability of Klegg�s management team to continue to execute and manage Klegg�s inventory and expenses. All forward-looking statements made in this press release are made as of the date hereof, and Klegg assumes no obligation to update the forward-looking statements included in this news release whether as a result of new information, future events, or otherwise. The forward-looking statements are subject to risks and uncertainties that could cause actual results to differ materially from those set forth or implied by any forward-looking statements.