AVATECH AG

AVATECH Sells a Business Unit

AVATECH is selling the AVAXESS access control division to Securiton AG. As of July 1 2009, Securiton AG will take over the customers and employees of AVAXESS and integrate the division into their branch office in Zurich.

Securiton AG will completely take over the AVAXESS division on July 1 2009. Securiton is a part of the Securitas Group and is one of the leading providers of security systems in Switzerland. The AVATECH employees in this unit will continue to be employed by Securiton, and continue to provide professional support for the existing equipment and installations. Our customers will benefit from the comprehensive product offerings, experience and local presence of the Securiton branch offices throughout Switzerland.

AVATECH AG will continue to remain active in the professional software tools sector and to develop that field with new products and offers. Activities in the area of identification systems based on RFID technology will also continue. In particular, this includes solutions for identifying vehicles and goods in the field of logistics.

At this time, we would like to thank our customers and suppliers for the trust they have shown us and for the many years of excellent cooperation.