$SNPD has signed an Original Equipment Manufactur

$SNPD has signed an Original Equipment Manufacturer (OEM) agreement with LG Electronics USA Inc., a major manufacturer of consumer electronic goods and parts, including flat panel glass used in LCD and LED televisions. This agreement allows Southern Products to buy high quality LG flat panels directly or through its Chinese component manufacturer and then use them in the manufacture and assembly of its line of Sigmac flat-screen televisions.

LG currently offers high quality television panels ranging in size from 32 to 55 inches, with an 84 inch panel expected to be available by the 3rd quarter of this year. These include LCD, LED as well as 3D models in most sizes. The panel resolution ranges from 720p to 1080p with cycles from 60 to 240 hz.

"This arrangement with LG will allow us additional direct purchasing power with LG and preferential rates," said Edward Meadows, Southern Products, Chief Executive Officer. "We also expect that when we move to our new expanded facility and launch our Assembled in the USA product lines, we will be able to take advantage of 'just-in-time' purchasing of the LG Panels under this agreement. This will save a substantial amount in financing costs we have been incurring when assembling televisions outside the US. It will also reduce the price risks normally associated with assembly of televisions shipped into the US."