Selling security business

1/2/2013 2:36 AM EST

Nio Inc. has entered into an agreement to sell its 
security business to a subsidiary of the US security 
company IVR Controls.  The sales price is royalty 
based, with a royalty payment of USD 250 per units 
sold of the current versions of Nio's core products 
plus a USD 100,000 initial payment.

During 2012, Nio has been transformed from a security 
company into being 100 percent focused on its online 
businesses; internet auctions and online gambling. 
The Internet Auctions sites are showing steady 
growth. The gaming website Panda365.com was launched 
in the the fourth quarter of 2012 and the Company is 
satisfied with the commercial launch of the website. 
The Company has had satisfying results on tests of 
turning Internet Auctions customers into gambling 
customers, resulting in customer growth according to 
plan. The Company's expectations for customer growth 
and earnings for 2013 stands. 

The security business has not been profitable in 
recent years, and generated less than two percent of 
Nio's revenues. A disposal of the business unit is in 
line with the Company's  transformation process, and 
will avoid further negative effects on earnings going 
forward. The transaction will be effective from 
January 1, 2013. 

Included in the sale are all IPR and trade names 
related to the security products. The agreement is 
subject to a final due diligence and board approval. 
The transaction will affect Nio's 2012 financial 
statements negatively, including a full write down of 
security inventory with up to USD 1 million. Nio will 
keep the parts and components stored at its German 
manufacturer, and in 2013 and onwards, the sale of 
these parts/components and the royalty payments is 
expected to result in an income to Nio. 

For more information, please contact: Brian Palm 
Svaneeng Mertz, CEO, Tel: +45 2390 3300.


About Nio Inc.
Nio Inc. has two primary business areas; internet 
auctions and online gaming. Nio owns and operates 
Internet auction sites which offers an unique and 
entertaining way to shop on the Internet, and the 
gaming site Panda365.com. Nio Inc. is a US company 
with more than 150 employees with its headquarter in 
Oslo, Norway. Nio is listed on the Oslo Stock 
Exchange (ticker: NIO).