Wireless communications developer and distributor Telit Communications plc (AIM:TCM) announced this week that it had been declared eligible to receive a €11.4 million grant, and has secured a €14.1 million loan facility, from the Ministry of Productive Activity in Italy.
The funds, totalling €25.5 million, were awarded to Telit to invest in a new R&D center in one of Italy's Objective 1 Areas, which include Sicily, Sardinia, Campania, Basilicata, Puglia and Calabria.
The new R&D centre will further strengthen Telit's existing R&D capability by significantly increasing the team of specialist developers dedicated to Telit's wireless solutions business unit. Telit noted that according to the latest ABI research, the mobile to mobile (m2m) market is expected to show 33% annual growth from 2005 to 2010.
Telit Communications CEO Oozi Cats said, "This endorsement from the Italian government is testament to Telit's position as an innovator in the exciting and lucrative m2m sector. The funds will allow Telit to introduce new and advanced products, based on our core technology and our own IP, into the high growth m2m market.
"I am confident the investment that we are currently making into R&D will deliver strong returns for our shareholders in the future."
Published by Globes [online], Israel business news - www.globes.co.il - on April 20, 2006
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