Headwater Acquires REALDiSPATCH Intellectual Property

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REALDiSPATCH automates the in-field management of trip plans, stop assignments, load metrics, delivery progress, GPS tracking, Engine Control Module (ECM) readings, hours of service (HOS) logging, and driver timesheet data, synchronizing this information in real time with Headwater’s Freight Logix system. Sophisticated wireless dispatch solution expands TMS product portfolio

Headwater Technology Solutions Inc., has acquired the intellectual property rights to REALDiSPATCH, an advanced yet simple-to-use mobile resource management solution designed for freight carriers and service/utility fleets, from developer Ferko Liblik Inc. and investor Canada Cartage System Limited, collaborators in the development of REALDiSPATCH. Terms were not disclosed.

According to Headwater Vice President Mel Mills, the field-deployed REALDiSPATCH solution is a highly integrated complement to Headwater’s Freight Logix system, a full-cycle Transportation Management System (TMS) used by Canada Cartage and many other freight carriers across North America. REALDiSPATCH automates the in-field management of trip plans, stop assignments, load metrics, delivery progress, GPS tracking, Engine Control Module (ECM) readings, hours of service (HOS) logging, and driver timesheet data, synchronizing this information in real time with Headwater’s Freight Logix system. The technology may also be offered in a standalone “light” mode as a GPS tracking, messaging, and ECM logging system only.

The technology currently operates on RIM BlackBerry devices, Motorola Mike/IDEN units, and it will be released for a number of ruggedized Windows-based and in-cab devices starting in Q2, 2006. REALDiSPATCH can be deployed on any of the major digital networks including IDEN, 1X, and GPRS, and Headwater expects to engage licensing and partnership arrangements with industry providers to support satellite and rural/analog cellular devices by early Q3.

“REALDiSPATCH is an important strategic addition to our suite of products and services, and significantly differentiates us in the TMS marketplace,” said Headwater President and CEO Markus Luft. “This is a customer-driven solution designed from day one to enhance the value of our existing Freight Logix technology. Unlike similar recent acquisitions in the TMS industry, there are no up-front integration, alignment, or re-write costs for Headwater. We will immediately produce accretive recurring-revenue sales by offering increased value and function to new and existing Freight Logix customers at a remarkably competitive price.”

"REALDiSPATCH delivers automation efficiencies to every step of the fulfillment process, from load and trip planning right through to charges and driver earnings calculations,” said Headwater Vice President Mel Mills. “Customers can expect significant operational returns from a combined Freight Logix/REALDiSPATCH deployment, with in-field options to suit a variety of situations.”

“Our vision and our commitment to our customers demand continuous investment and innovation in our methods of service delivery,” said Canada Cartage President Jeff Lindsay. “Our investment in REALDiSPATCH and this subsequent transaction validate this commitment and direction. The logical next step was to place the technology with an experienced transportation/technology group like Headwater, who can operate, support, and continue to advance the solution.”

Headwater will immediately begin marketing the product to new and existing freight transportation customers, Mills said. Ferko Liblik will continue to work with Headwater on all elements of the solution. Canada Cartage has signed on as REALDiSPATCH customer number one and will require all mobile data and tracking solutions it deploys from any vendor to support the technology, whether handset-based, freight-based, portable, or asset-mounted.

“There have been two long-standing barriers to wireless solution acceptance in transportation” said Ferko Liblik president Dathan Liblik. “They are the disproportionate compromise between features given price/commitment, and an impractical expectation to correlate live data between loosely-integrated tracking and freight systems. As a result, customers aren’t confident that promised returns will be realized in practice, and that makes a typical 5-year contract a risky proposition. REALDiSPATCH addresses these concerns through support for both general and specialized hardware platforms and through complete and centralized Freight Logix feature integration. REALDiSPATCH shows great promise to unlock this significant revenue market.”

According to Lindsay, Canada Cartage has reviewed, tested and in some cases deployed leading 3rd-party telematics and asset monitoring solutions over the past 10 years.

“Each has been strong in its own domain but the trade-offs have been very challenging, particularly because like many freight carriers we operate a diversified and demanding business,” he said. “REALDiSPATCH addresses this dilemma: the technology designs were driven by transportation process, not the other way around, and full integration to Freight Logix means we go to a single source for the complete picture. That’s effective operational management worth paying for.”

About Headwater Technology Solutions Inc.

Headwater Technology Solutions Inc. is a global Supply Chain Execution (SCE) company focused on the 3PL WMS, TMS and LLP markets that support the flow of goods and information from the point of origin to consumption. Headwater provides logistics management consulting and solutions, transportation management solutions, and an array of IT consulting and implementation services. Headwater’s SmartEnterprise 2 and Freight Logix 3PL/LLP/corporate logistics and transportation solutions enable seamless supply chain planning and execution that leads to smarter and more profitable management of goods as they move through the supply chain. Headwater maintains corporate headquarters in the Toronto suburb of Markham with regional offices in Oakville and Atlanta, and markets its services and solutions internationally.

About Canada Cartage System Limited

Founded in 1914, Canada Cartage provides a full array of transportation services, from cross-Canada and U.S. truckload and LTL shipments to customer-based dedicated fleet outsourcing. The company operates terminals in Toronto, Oshawa, Brampton, Montreal and London, and employs a fleet of over 1,600 trucks and trailers. Canada Cartage’s customers include some of the most recognized retailer brands in North America and many have been customers for over half a century.

About Ferko Liblik Inc.

Based in Ajax, just east of Toronto, Canada, Ferko Liblik provides project management, systems architecture, development, mobilization and integration consulting services to Canadian and US industry leaders in transportation and finance. Ferko Liblik is a RIM ISV Alliance Partner and a Microsoft Registered Partner.

Contacts:

Headwater Technology Solutions Inc.

866 306 0999

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Victor Wortman