FRANKLIN, Wis., Aug. 20 /PRNewswire-FirstCall/ -- VUANCE Ltd. (NASDAQ: VUNC), a leading provider of innovative Radio Frequency Verification Solutions, including active RFID, electronic access control, credentialing, accountability and incident response management, today announced that it has entered into an amendment agreement and bond with the holder of a $2.5 million convertible bond in which the holder waived the Company's compliance and amended certain provisions in exchange for modification of certain terms of the bond. In exchange for security in certain assets of the Company, VUANCE and the holder agreed to waive compliance and amend provisions of the bond including increasing the applicable interest rate, releasing the Company from certain payments upon the completion of certain payments of principal and interest due under the bond and making monthly payments against the total amount due under the bond over an eight year period. This convertible bond was issued pursuant to a Subscription Agreement and bond dated November 16, 2006. It was amended on November 28, 2007 and further amended on June 30, 2008. "We are gratified to have this support from our long-term bond holder, especially during these difficult economic conditions," said Eyal Tuchman, Chief Executive Officer of VUANCE, Ltd. "We will now be able to pay down our debt monthly over eight years. Our $1.1 million pledge is released and we are not in violation of our covenants. The parameters of this amended agreement give us the flexibility we need to focus on our strategic initiatives while strengthening our balance sheet, enhancing shareholder value and expanding our ability to attract new investors." About VUANCE, Ltd. VUANCE, Ltd. develops and markets state-of-the-art security solutions for viewing, tracking, locating, credentialing, and managing essential assets and personnel. VUANCE solutions encompass electronic access control, urban security, and critical situation management systems as well as long-range Active RFID for public safety, commercial, and government sectors. The Company's comprehensive range of products enable our business partners to offer their customers end-to-end solutions that can overcome the most difficult security challenges. Its Incident Response Management System (IRMS) is the industry's most comprehensive mobile credentialing and access control system, designed to meet the needs of Homeland Security and other public initiatives. VUANCE is serious about security. VUANCE, Ltd. is headquartered in Rockville, MD. Its common stock is listed on the NASDAQ Capital Market under the symbol "VUNC". For more information, visit http://www.vuance.com/. Safe Harbor This press release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. These statements are subject to known and unknown risks, uncertainties and other factors that may cause actual results, performance or achievements to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements. Statements preceded or followed by or that otherwise include the words "believes", "expects", "anticipates", "intends", "projects", "estimates", "plans", and similar expressions or future or conditional verbs such as "will," "should," "would," "may" and "could" are generally forward-looking in nature and not historical facts. Forward-looking statements in this release also include statements about business and economic trends. Investors should also consider the areas of risk described under the heading "Forward Looking Statements" and those factors captioned as "Risk Factors" in the Company's periodic reports under the Securities Exchange Act of 1934, as amended, or in connection with any forward-looking statements that may be made by the Company. The Company also disclaims any duty to comment upon or correct information that may be contained in reports published by the investment community. Investor/Media Contact Brett Maas Hayden IR 646-536-7331 DATASOURCE: VUANCE, Ltd. CONTACT: Brett Maas of Hayden IR, +1-646-536-7331, , for VUANCE, Ltd. Web Site: http://www.vuance.com/

Copyright