SALT LAKE CITY, UT—May 21st, 2003
Yesterday, Optistreams issued a Press Release stating that Optistreams was suspending sales and distribution of the DataStorm manufactured by MotoSAT. The Press Release claims “concerns” over technical support issues and noncompliance with FCC regulations. The Press Release also claims to have “results” from an independent testing lab concerning DataStorm, but fails to identify the laboratory or disclose the “results.” Additionally, the Press Release claims that Optistreams has filed a complaint with the FCC but fails to state the nature of the complaint. Prior to seeing the May 16, 2003 Optistreams Press Release, MotoSAT was unaware of any supporting issues or concerns about FCC compliance or technical support issues from Optistreams. Optistreams has not supplied any information to MotoSAT concerning these allegations.
MotoSAT thoroughly tested the DataStorm with an FCC approved testing lab, Communication Certification Laboratory. The results of the tests dated February 19 and March 6, 2003, indicate that DataStorm is in full compliance with Class B requirements of EN 55022 and EN 55024: 1998 Federal Communications Commission (FCC) Part 15, Subpart B and Industry Canada (IC) ICES-003. These are the applicable FCC regulations concerning the DataStorm. A full copy of the report may be viewed at http://www.motosat.com/news_001.htm. DataStorm is also in full compliance with Hughes Network Systems regulations concerning operability with the DirecWay platform. A copy of the approval letter from Hughes Network Systems (Hughes) verifying this information may also be viewed at http://www.motosat.com/news_001.htm.
Prior to Optistreams’ Press Release MotoSAT had commenced a lawsuit against Optistreams in the United States District Court for the District of Utah on February 3, 2003. In that action, MotoSAT seeks rescission of its agreement with Optistreams dated February 1, 2002 due to, among other things, material misrepresentations made by Optistreams to induce MotoSAT to enter into that agreement and Optistreams’ failure to provide agreed upon support. Significantly, although the February 1, 2002 agreement obligated Optistreams to provide MotoSAT with support, Optistreams’ alleged issues and concerns referenced in its Press Release were never previously disclosed to MotoSAT.
Jim Pendleton, President of MotoSAT, believes that the Optistreams Press Release of May 16, 2003 is inaccurate and may be calculated to mislead dealers who sell the DataStorm and is simply an attempt by Optistreams to promote a competing product that may not yet be ready for market. “Optistreams has consistently failed to provide adequate customer support for DataStorm dealers. Optistreams has not kept up with training or application of the DataStorm comparable to other Hughes VARs. In my opinion, Optistreams has not shown the ability to service mobile applications.”
For more information, please email Jim Pendleton at email@example.com
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