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Somerset International Revenue and Gross Margins Increase Significantly in 2007 Revenue Increases 55%, With a 69% Increase in Gross Margins Over Previous Year; Gross Profit Margins Increase More

SOURCE:

Somerset International Group, Inc.

2008-04-02 06:54:00

Somerset International Revenue and Gross Margins Increase Significantly in 2007

Revenue Increases 55%, With a 69% Increase in Gross Margins Over Previous Year; Gross Profit Margins Increase More

BEDMINSTER, NJ–( EMWNews – April 2, 2008) – Somerset International Group, Inc. (OTCBB: SOSI) (www.somersetinternational.com), a security technology holding

company, reported significant increases for the year ended December 31,

2007.

“Our financial results for the year ended December 31, 2007 demonstrate the

success of Somerset’s growth strategy of increasing revenue through the

acquisition of companies in the security technology industry,” commented

John X. Adiletta, President and Chief Executive Officer of Somerset. “The

acquisitions we consummated in 2007 have made significant contributions to

our growth in revenues, gross profit dollars and gross profit margins.

“In July 2007 we completed the acquisition of Meadowlands Fire, Safety, and

Electrical Supply Co., Inc.; and Vanwell Electronics, Inc. Vanwell

Electronics exclusively distributes Siemens Building Technologies, Inc.

products and Meadowlands distributes other brands of fire and security

equipment. The addition of both companies was a significant milestone for

Somerset as we continue to build out our portfolio of security technology

companies. Additionally, in October 2007 we completed the acquisition of

Fire Control Electrical Systems, Inc. Fire Control exclusively distributes

Honeywell Life Safety security products. This acquisition, in the final

quarter of 2007, further strengthened and diversified our revenue stream

and contributed to the increases in revenue and gross margins reported in

our year-end results.

“We enter 2008 on what we believe is an even stronger base than 2007. We

recently hired Robert M. Ryan as Vice President and General Manager of Fire

Control Electrical Systems, Inc. and Lance K. Berkheimer as President of

Meadowlands Fire, Safety, and Electrical Supply Co., and Vanwell

Electronics. Both Mr. Ryan and Mr. Berkheimer have depth of experience in

both management and sales positions. These new additions strengthen each of

our portfolio companies and further position them for growth moving

forward.

“We also recently engaged Sales Engine International to enhance sales of

our campus safety security solution subsidiary, Secure System, Inc. Sales

Engine International uses cost-effective and result-oriented e-mails and

webinars to demonstrate effectiveness of Secure System.”

Mr. Adiletta concluded: “The completion of the four acquisitions Somerset

has made to date demonstrates our ability to acquire and integrate

profitable businesses within the security technology sector. Our goal is

to develop a portfolio of synergistic companies that will increase our

cross-selling opportunities and operating efficiencies over time and

produce increased profitability for Somerset. Moving forward, we continue

to target companies with high growth rates, strong customer base and

products that can benefit from cross-selling opportunities.”

Financial Highlights:


--  Revenue for the year ended December 31, 2007 increased $2,138,921 to

    $3,879,312 compared with revenues of $1,740,391 for the comparable year

    ended December 31, 2006.

    

--  Net loss attributable to common stockholders for the year ended

    December 31, 2007 was $1,753,078 or $0.15 per share compared to $1,495,687

    or $0.23 per share during the year ended December 31, 2006.

    

--  Gross margins for the year ended December 31, 2007 increased to

    $2,099,023, or 54.1% of revenue representing an increase of $1,450,882

    compared to a gross margin of $648,141 or 37.2% of revenue during the year

    ended December 31, 2006.

    

--  Selling, general and administrative (SG&A) expenses for the year ended

    December 31, 2007 increased by $1,517,215 to $3,140,091 over SG&A expenses

    of $1,622,876 during the year ended December 31, 2006.

    

For more information on the results, please visit the Company’s Form 10K

filing at www.sec.gov.

About Somerset International Group, Inc.

Somerset International Group, Inc. finds undervalued technology investments

aligned around the exponential growth in concern and demand for security

and the acquisition of profitable and near-term profitable private small-

and medium-sized businesses that provide proprietary security products and

solutions for people and enterprises — from personal safety to information

security. Additional information about the company is available at:

http://www.somersetinternational.com.

About Secure System, Inc.

Secure System, Inc. provides personal alarm systems, wireless transmitters

and receivers, and personal alarm locators. The company currently serves

colleges and universities and medical and mental health facilities. Its

products are also easily adaptable for office campuses, residential

facilities, and correctional facilities. The system works by providing an

individual with a wireless personal alarm locater with which they can

summon help and be located by the pressing of a button. Additional

information about the company is available at:

http://www.securesysteminc.com.

About Meadowlands Fire, Safety, and Electrical Supply Co., Inc./Vanwell

Electronics, Inc.

Meadowlands and Vanwell specialize in the distribution, sale, installation

and maintenance of fire and security equipment and systems that include

fire detection, video surveillance, and burglar alarm equipment.

Meadowlands and Vanwell have similar product availability from distinct

manufacturers. Vanwell exclusively distributes Siemens Building

Technologies, Inc. products and Meadowlands distributes other brands of

fire and security equipment. This affords the opportunity to provide a

wide array of specified equipment with the flexibility to offer cost

effective alternates when appropriate. The products encompass complete

lines of fire, CCTV (closed circuit TV), communications and PA systems;

services include maintenance contracts, monitoring services and system

engineering. Additional information about the company is available at:

http://www.meadowlandselec.com.

About Fire Control Electrical Systems, Inc.

Fire Control Electrical Systems, Inc. specializes in the distribution,

sale, installation, and maintenance of Honeywell Life Safety fire and

security equipment and systems that include fire detection, video

surveillance, sound systems, and burglar alarm equipment. Additional

information about the company is available at: http://www.firecontrols.com.

Safe Harbor Statement

Statements about our future expectations are “forward-looking statements”

within the meaning of applicable Federal Securities Laws, and are not

guarantees of future performance. When used herein, the words “may,”

“will,” “should,” “anticipate,” “believe,” “appear,” “intend,” “plan,”

“expect,” “estimate,” “approximate,” and similar expressions are intended

to identify such forward-looking statements. These statements involve risks

and uncertainties inherent in our business, including those set forth under

the caption “Risk Factors” in our most recent Registration Statement on

Form SB-2 dated December 6, 2006 filed with the SEC and other filings with

the SEC, and are subject to change at any time. Our actual results could

differ materially from these forward-looking statements. We undertake no

obligation to update publicly any forward-looking statement.

Contact:

Somerset International Group, Inc.
John X. Adiletta
908-719-8909

Investor Relations:
Adam Holdsworth
Rachel Colgate
Erica Ruderman
212-825-3210

Media Relations:
Laura Colontrelle
212-825-3210

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