CareDecision Corp. (OTCBB:CDED) today announced that it has entered an agreement for the purchase and installation of its proprietary ResidenceWare multi-unit messaging management systems to a group of related hotels in the greater Chicago metropolitan geographic area. The agreement stipulates the initial installation of 450 units with continued installations over the course of the agreement culminating in a total of 3700 units. This is a clarification of an earlier release.
CareDecision has also accepted an opening installation order for 250 initial ResidenceWare units from a second group of hotels located in Illinois but outside the immediate Chicago metropolitan area. The two groups will be part of the same cooperative network. These agreements include product sales, advertising partnerships, and E-transaction networks.
Robert Cox, CareDecision Corp. CEO, commented, “This most recent sale of ResidenceWare units introduces our product system into the most significant metropolitan area to date. The agreement represents a revenue potential of $1.8 million simply from estimated product sales and installations. PCHertz.com, Inc., the Company`s revenue marketing agent projects a potential for ancillary cooperative advertising and e-transaction recurring revenues that on an annual basis could more than double the actual product related revenue contribution, and at margin levels enjoyed by other subscriber based industries.”
ResidenceWare Guest is CareDecision`s product system for hotels and motels that furnish electronic connectivity solutions across multiple and diverse markets. ResidenceWare also represents a collateral source of cooperative revenue through local advertising fees, transaction fees, and rental Internet connections.
Mr. Cox concluded, “ResidenceWare has circulated excitement and stimulated the expectations of small hotel owners and managers across the nation. Each of our customers have readily seized upon the multitude of obvious marketing and economic benefits associated with our product system. ResidenceWare not only satisfies their clear unmet need but it has uncovered an intense level of previously unsatisfied demand percolating within this previously overlooked market.”
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