Penny Stock Profile - Newport Digital Technologies

Newport Digital Technologies
(OTCBB: NPDT)

"Newport Digital Technologies to Implement Microsoft Licensing Agreement; Prepares to Launch First Ruggedized RFID Reader with the Windows Mobile Operating System"

Financial Snapshot:

Business:	Internet Technology
Exchange:	OTCBB
Symbol:	NPDT
Current Price (10/30/09):	$0.03

Newport Digital Technologies (OTCBB: NPDT)

Detailed Quote: http://www.otcpicks.com/quotes/NPDT.php

Company Overview

Newport Digital Technologies, Inc. (NDT) was formed in 2008 and is a technology solutions and product company focused on the globally expanding wireless sector and the platform’s rapidly emerging applications. The company’s portfolio of solutions and products includes comprehensive offerings in the following technologies:

1. WiMAX (Wireless Interoperability and Microwave Access) and the platform applications of Digital Signage/LED (Light-Emitting Diode) Lighting, and Security and Surveillance;

2. RFID (Radio Frequency Identification)

3. e-Learning. NDT leverages strategic partnerships with leading global technology companies and systems integrators to provide technology solutions for major retailers, government entities, such as the United States Department of Defense, manufacturing and energy companies, etc.

NDT is uniquely positioned to provide original engineering solutions and rapid commercialization of product through an relationship with Taiwan’s two advanced engineering institutes: Institute for Information Industry (III) and Industrial Technology Research Institute (ITRI).

NDT derives competitive advantages from partnering with III and ITRI, which have more than 30 years of investment in information and communication technology research and development (R&D). Funded primarily by the Taiwan government, their annual budget is in excess of $1.7 billion. Through this relationship, NDT has access to over 6,0007,800 of ITRI’s and III’s engineers who maintain a technological leadingadvantage -edge by filing an average of five patents per day.

NDT employs an aggressive business strategy of conducting two-way dialogue between the R&D of Taiwan’s advanced engineering institutes and channel partner/end-user demand. NDT unites and drives III’s and ITRI’s understanding of the technology development roadmaps of the world’s OEMs, ODMs, and system integrators. NDT concurrently is in the process of building a seasoned, direct, channel , and distribution sales organization focused on driving the manufacturing and commercialization of its leading-edge intellectual property with strategic partnerships. This strategy ensures NDT is able to take advantage of providing a solution or product wherever an idea or demand originates. Its business model ensures that NDT can shepherd the process directly or in partnership with industry players.

Highly Capital Efficient and Scalable Business Model

NDT has a highly capital efficient business model through its ability to leverage its R&D, manufacturing, and global distribution alliances. The company’s ability to license proven technologies in its core competencies on favorable terms with its Taiwan R&D partners, significantly reduces its engineering costs and accelerates commercialization. At the operational stage, the company plans to keep its inventory risk low by utilizing a “customer demand” product fulfillment model, which will minimize on-hand inventory risk. In addition, NDT will build a global footprint utilizing ld scale by using its strategic relationships with global technology market leaders ands well as Taiwan-based manufacturers and suppliers. This business model positions the company for rapid growthto build scale quickly andto reaches global markets usingwith minimal capital.

Proprietary technology and strategic business alliances are distinct competitive advantages

NDT’s strategic business alliance with Taiwan's premier advanced engineering institutes III and ITRI provides a sustainable competitive advantage. For over thirty years, the Taiwanese government and the Taiwan High Technology Industry provided III and ITRI with multi-billion dollar annual funding. These R&D partners have a core ofover 7,900 engineers who are focused on developing advancedcutting-edge productstechnologies and technologies: in fields such asI information communications technology;, electronics;, and nanotechnology. III and ITRI file for approximately five technology patents per day. As government sponsored entities, III and ITRI do not sell their products or and solutions directly to end users, but instead license to, or form alliances with, key strategic partners to commercialize their technologies. . NDT has access to all of theits partners’ R&D and engineering resources of 111/ITRI, as well as their market intelligence and the International Tender and Request for Proposal Group. Through this R&D relationship, NDT has the benefit of co-ownership with III and ITRI of all intellectual property that NDT customizes and develops for its customers. In addition, the company has exclusive and perpetual worldwide rights to sell all co-developed technologies.

Testing Commercial llyviability oftested products across leading edge IT technology reducess R&D risk and accelerates time to marketThrough the company’s strategic collaborations with its global partners.

NNDT is developing proprietary innovation in its core competencies through a unique business strategy that reduces both cost and commercialization risk. Because NDT has ongoing access to its R&D partners’ advanced leading-edge technologies, products and solutions can be customized to meet the needs of any of the company’s channel partners and their end users. For example, NDT is currently finalizing development of a unique RFID reader technology for a major wireless telecom’s supply chain management business (NDT customer). Under NDT’s model, the III/ITRI product is customized to the NDT customer’s specifications and, will be manufactured by one of Taiwan’s premier technology manufacturers thenand sold, under either or both NDT’s or the NDT customer’s brand, through NDT customer’s sales channel to the end user. NDT is currently finalizing manufacturing agreements in Taiwan and a master distribution agreement with this customer. This strategy translates to all of the technologies that NDT will customize with III and ITRI : I whether it be in other RFID applications, WiMAX, digital signage/LED lighting solutions, sSecurity and Ssurveillance Ttechnology, or e-Learning technology and solutions.

Significant high-level customer relationships to market customer driven solutions

The company is uniquely positioned to match the technology needs of its Fortune 500 customers and partners with the proven and uniqueand cutting-edge technologies generated by its R&D partners. NDT has extensive relationships with senior management of Fortune 500 companies. NDT has a very seasoned management team with significant experience in marketing and developing technology solutions for these customers. Currently, the company has finalized its master distribution agreements with Ingram Micro (NYSE: IM), who has a vast worldwide network of distribution channels, annual sales topping $34 billion and more than 14,000 employees worldwide. The Company is in the process of negotiating a number of additional sales channel partnership to reach most Fortune 500 companies and their clients. The company believes that it can reach worldwide markets in all areas of its core competencies with these partners.

Significant Market Opportunity

NDT’s core technology competencies are very aimed at rapidly growing, multi-billion dollar markets and are growing rapidly. NDT’s strategy is to penetrate these core markets usingeach of these market segments through targeted sales strategies thatwhereby NDT leverages a major channel partner to serve their reach their client based on the client’s specific needs. Once the lient need is ascertained, NDT has the ability to work with III and ITRI to customize a solution based on III and ITRI existing R&D portfolio of solutions, thereby making the solution commercially viable for a specific customer. NDT does not take a developed technology solution and attempt to market it to through a channel, but actually does the opposite in identifying the demand and then customizing a solution specifically to meet that demand.

ITRI and NDT are actively engaged with a major U.S. retailer to replicate in the U.S. the EPC Global Certified Testing Lab that has been successfully established in Taiwan . This is an opportunity for NDT to be an integral participant in the migration from Uniform Product Code (UPD) to EPC in the retail market, with the targeted major U.S. retailer being the company’s first opportunity.

NDT is a preferred partner with III and ITRI in request for proposals (RFPs) from governments around the world seeking RFID, WiMax, eLearning, or Security and Surveillance technology infrastructure solutions. III/ITRI and NDT currently have RFPs submitted with the governments of Fiji, Marshall Islands, the Philippines, and Saudi Arabia. The company expects to joint-bid on $XX of RFPs over the next [five] years. Contracts are typically multi-year and range from $3 million to over $100 million. NDT will orchestrate development and deployment of awarded bids by leveraging its relationships III/ITRI engineers and its Fortune 500 partners and/or local systems integrators.

Recent NPDT News:

October 30 - Newport Digital Technologies to Implement Microsoft Licensing Agreement; Prepares to Launch First Ruggedized RFID Reader with the Windows Mobile Operating System

Newport Digital Technologies, Inc. (OTCBB: NPDT), a technology solutions driven company focused on rapidly emerging businesses in the wireless technology space, announced today that it has implemented the licensing agreement with Microsoft Corp. (NASDAQ: MSFT) to develop applications for its Windows Mobile platform. The Company has also progressed with their distribution agreement previously announced with Ingram Micro, Inc. (NYSE: IM), which will serve as its initial primary sales channel partner.

Newport Digital Technologies, Inc. (NPDT), in conjunction with leading Taiwan-based R&D technology incubators, the Institute for Information Industry (III) and the Industrial Technology Research Institute (ITRI), is commercializing a number of leading-edge Radio Frequency Identification (RFID) technologies. The first product is the N37B Ruggedized Handheld RFID reader and computing device that was unveiled this week at the Voluntary Interindustry Commerce Solutions Association (VICS) conference hosted by the University of Arkansas RFID Research Center. NPDT is a named sponsor of this research center at the Sam Walton College of Business. The N37B will also offer two more complementary integrated options that include 3G connection module and location and navigation-based GPS. The 3G option will enable the handheld to have data connectivity anywhere a cellular connection is available, making for a “connect anywhere” scenario for RFID business applications. The GPS option will allow for the N37B to not only collect RFID data from item level inventory but to pinpoint and report the location of the inventory scanned by the RFID reader. This greatly enhances and expands the applications that can be offered from Independent Software Vendors (ISVs).

“We are thrilled to be approaching final certification of this RFID reader for use on a major telecom’s wireless network,” said NPDT CEO Gary DeMel. “We are also excited by the response of the RFID industry at the VICS conference to the total RFID solution NPDT demonstrated at the VICS conference. The N37B, which will run on Microsoft’s Mobile Computing Platform, has wide application in RFID market. NPDT will offer this device along with a comprehensive line of mobile computing products and solutions targeting RFID field applications for asset tracking, inventory management and point-of-sale for various B2B markets.”

NPDT's planned RFID product suite includes: Electronic Product Code (EPC) Global certification laboratories, ruggedized, military/commercial-grade RFID enabled, mobile handheld tablet computers, RFID forklifts, POS kiosks, POS Checkout, EAS readers, USB readers and RFID tags. Utilizing the Microsoft Windows Mobile operating system, NPDT will further extend the features and capabilities of its products.

“Newport Digital Technologies has developed truly innovative RFID technologies and we are thrilled to work with them to bring these technologies and applications to the Windows Mobile platform,” said Daren Mancini, General Manager in the Windows Mobile Sales division at Microsoft.

“We are very excited to work with Microsoft's technology and business teams to develop the next generation of RFID computing devices by utilizing Windows Mobile with customized application suites,” commented Gary DeMel, CEO. “Microsoft, which provides software and hardware products and solutions worldwide, is one of the world's premier companies and we are looking forward to partnering with them through a successful licensing agreement. This agreement may prove to be the springboard that launches Newport Digital into becoming a recognized name in the wireless space. We are proud to be a company with technology that Microsoft believes in.”

“At the VICS Conference NPDT was presented as sponsor alongside Motorola, Impinj, Avery Dennison, and ADT; all leaders in the RFID industry today,” said NPDT CTO and COO Weiling Tsao. “The NPDT demonstration booth, in our opinion, was by far the most elaborate, and the only one having live RFID demos. NPDT is not interested in just selling a single device or product; our focus is to deliver a total end-to-end RFID solution. Using the Microsoft Operating System enables us to accommodate almost nearly all of our potential customer base. We look forward to providing more guidance to our shareholders and clients as we further develop our RFID solutions.”

About Newport Digital Technologies, Inc.

Newport Digital Technologies, Inc. is a technology solutions driven company organized to focus on serving five of the fastest-emerging businesses in the technology space -- RFID (radio-frequency identification), WiMax, eLearning, Digital Signage & LED Lighting and Security & Surveillance solutions. NPDT develops and delivers these technology solutions through strategic collaborations with global partners, including Taiwan Industry and Taiwan's premier technology R&D incubators -- the Institute for Information Industry (III) www.iii.org.tw/englishand the Industrial Technology Research Institute (ITRI) www.itri.org.tw/eng. NPDT will customize these technology solutions and market them through Fortune 1000 channel partners and systems integrators on a worldwide basis. www.newportdt.com

Newport Digital Technologies.

620 Newport Center Drive, Suite 570,
Newport Beach, CA 92660
Tel: +1-949-219-0530

Website: http://www.newportdt.com/

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