4C Controls, Inc. (OTCBB: FOUR)

Dear Reader,

There was a time when the stock market was ravenously searching for the next red-hot homeland defense play as if they were dot coms in 1999. Investors and venture capital firms were chasing the next-big-thing in security technologies across the board and it seemed every company that made or hoped to make any product at all was finding a way to adapt their widget and create a de facto homeland defense revenue stream.

And very few were successful.

Now, the homeland defense market has evolved further, becoming more Darwinian as investors take a more critical eye at the arena. Like Internet stocks after the dot-com bubble broke, investors are looking for companies that can pierce blue-sky optimism with trust-earning contracts, acquisitions, and management teams. They may be willing to wait on profits but few will wait for real business activity. It is no longer enough just to have a technology that sounds viable. The investment community wants a real player in the industry to say it with the conviction of a long term agreement.

This formidable hurdle weeds out many in the space, any space really. But it also advances the interest and appeal of those that have the ability to attain such important deals. Enter 4C Controls Inc..

4C Controls Inc. (OTCBB:FOUR), offers high technology integrated security solutions providing real-time early warning and reduction of time scales from threat-detection to termination in the field.

Sounds great… but I’ve heard similarly promising descriptions before. Many of those once glittering business plans are now shells waiting for their next ride up the roller coaster.

But 4C has distinguished itself with business activity that separates it from the pack in many regards. Let’s take a look at a few items:

Management/Leadership:

4C announced it has appointed Major General Khalid Abdulla Mabarak Al Buainain, Commander & Chief of UAE Air Force and Air Defense (Ret.), as Vice President for Middle East Military and Defense Security. Khalid, comes to 4C Controls after a distinguished 32 year career with the United Arab Emirates Air Force and Air Defense, ultimately rising to the rank of Major General, Commander & Chief of UAE Air Force and Air Defense. In addition to his military experience, Major General Khalid has also served as a member and team leader for bilateral senior government discussions between the UAE and many foreign countries.

Khalid’s addition is positive on two levels. First, it gives 4C his unique expertise and his considerable Rolodex. By all appearances, Khalid appears to be a fellow who can pick up the phone and contact potential government representatives at the highest level. Khalid brings ‘street cred’ to 4C and his relationship assets could lead to lucrative contracts.

Similarly, 4C appointed FBI Supervising Special Agent (Ret.) Dr. Philip Hayden as its Vice President, Security Assessment & Threats Analysis. The much decorated Vietnam veteran and FBI special agent will spearhead a threat assessment team that will be critical to 4C’s success.

Acquisitions: 
4C may have accomplished a 1+1=3 objective via the signing of a binding agreement to acquire Zahra Technology LLC (http://www.zahratech.com) and its wholly owned subsidiary Zahra Security Systems and Electricals LLC (http://www.zahratechnology.com).

The Zahra brand is expected to facilitate growth in international sales and operations for 4C. This optimism may be well founded given Zahra’s long list of past and present clients which include:

• U.A.E. Central Bank, Barclays Bank, Citibank 
• ABN Amro Bank, Abu Dhabi Investment Authority 
• Dubai Marina, Jumeirah Beach Hotel, Zayed University 
• Cisco Systems, Philips Middle East, Pfizer Intl. Corp. 
• Toyo Kanetsu, Nestle, ABB, CCC, Pepsi-Cola International 
• Reuters, Lucent Technologies, British American Tobacco 
• Estee Lauder, Kinko’s Middle East, Abbott Laboratories 
• Dubai Petroleum, Saatchi & Saatchi, Shell Middle East 
• Bechtel International, ETISALAT, Ford Direct Markets 

The reality is that Homeland Defense and international security isn’t going anywhere. It’s an industry that will continue to grow annually. But the recessionary market and more prudent spending make clear that true performers in the space will earn market share and usually, profits for the company.

These announcements and corporate moves certainly better position 4C Controls to emerge as a leader in a field in need of its services… and competition.

Breaking *NEWS* from 4C Controls, Inc.

Press Release Source: 4C Controls Inc.
Thursday September 4, 8:00 am ET

NEW YORK--(BUSINESS WIRE)--4C Controls Inc. (OTCBB: FOUR - News) today announced signing of a binding agreement to acquire Zahra Technology LLC (http://www.zahratech.com) and its wholly owned subsidiary Zahra Security Systems and Electricals LLC (http://www.zahratechnology.com).
 

Mr.Sajwani founder and CEO of Zahra together with Mr. Jean-Robert Martin in Dubai upon signing of the acquisition agreement. (Photo: Business Wire). View Multimedia Gallery

Under the terms of the agreement, 4C Controls will acquire 80% of Zahra in return for an undisclosed combination of cash and securities of 4C Controls. The founders and senior management of Zahra will retain 20% ownership of Zahra. The parties anticipate signing a supplemental agreement regarding definitive details applicable to the transaction and closing the acquisition prior to the end of the third quarter 2008. The acquisition of Zahra is the first of further strategic acquisitions which 4C plans as part of its growth strategy and business model.

4C Controls intends to utilize Zahra to facilitate growth in international sales and operations. In 2007, Zahra had gross revenues of approximately US $11.8 million and expects to close 2008 with revenues of approximately US $25 million. Zahra currently has 105 employees of whom 37 are engineers, 44 are technicians and 24 are office staff. 4C Controls anticipates that substantially all will continue working for the company after the closing of the acquisition.

Since Zahra’s inception in 1983, the company has been a leading provider of high technology products, services and solutions for the security and communication industry in Dubai, Abu Dhabi and throughout the United Arab Emirates. Zahra is a manufacturer, trader & exporter of Access Control Systems, Building Management Systems, Intercom, Video Conferencing, CCTV Surveillance System, Communication Solutions- Telex, Copyette EH, EDAT/ZIN-Digital Conversion Cards, CDP 2001, XGEN, Narrator/Tutor and Replica. It is also a Card Solution supplier, integrator and provider.

Zhara’s integrated security, surveillance and access controls clients include the highest levels of governmental organizations, such as Crown Prince Management (Abu Dhabi), Central Military Academy (Dubai), Abu Dhabi Defense, General Postal Authority, Ministry of Labor Office and Social Affairs, Dubai Airport Facility, Dubai Broadcasting Corporation. Zahra's current portfolio of products and services is extensive, and Zahra foresees to further grow by continuing to align itself with the latest innovations in the field, and capitalizing on its track record with the many prestigious and noteworthy clients that Zahra has served, including the following

    * U.A.E. Central Bank, Barclays Bank, Citibank
    * ABN Amro Bank, Abu Dhabi Investment Authority
    * Dubai Marina, Jumeirah Beach Hotel, Zayed University
    * Cisco Systems, Philips Middle East, Pfizer Intl. Corp.
    * Toyo Kanetsu, Nestle, ABB, CCC, Pepsi-Cola International
    * Reuters, Lucent Technologies, British American Tobacco
    * Estee Lauder, Kinko’s Middle East, Abbott Laboratories
    * Dubai Petroleum, Saatchi & Saatchi, Shell Middle East
    * Bechtel International, ETISALAT, Ford Direct Markets

A detailed list of Zahra’s clients may be viewed at: http://www.zahratech.com/references.htm.

The acquisition of Zahra will provide 4C Controls with high quality references and experienced high technology engineering and technical teams to execute large scale projects, especially in connection with the 4C Controls strategic alliance with Sire Contracting Company. Zahra will change its name to 4C Security Systems UAE to unify and extend the 4C Controls international brand.

Mr. Jean-Robert Martin, President and Chairman of 4C Controls, stated, “Government and commercial enterprises have complex security and surveillance needs, and they require more attentive and sophisticated partners to help them solve these challenges. With the addition of Zahra to our products and services capabilities, we can quickly customize and deliver integrated high technology solutions for our worldwide customers thereby being responsive to their unique needs on all fronts. Our end-to-end solutions will be significantly enhanced with broad scale security risk assessment, custom system design and specialized component structures. Zahra has a platinum quality track record working with major governmental and commercial organizations. We are very pleased to have Zahra join us and we look forward to having them grow with us.”

“The opportunity to join forces with 4C Controls and see our capabilities flourish inside a global satellite, satellite images, security, surveillance and access controls platform is compelling,” said Samir Sajwani, founder and Deputy CEO of Zahra. “We are confident that, with 4C Controls, we can continually improve results and aggressively grow our Middle East regional and international client base.”

Mr. Anastasios Angeloglou, CEO of BQT Solutions Limited with whom 4C Controls has a strategic alliance, said “We anticipate the acquisition of Zahra by 4C Controls to provide long-term developmental benefits to all parties. We expect Zahra to deliver strong sales and revenue channels for 4C Controls as well as BQT Solutions products and services in the booming market in the Middle East. We also intend to open up distribution for Zahra in our global markets.”

About 4C Controls Inc.
4C Controls is an early stage company offering high technology integrated security solutions providing real-time early warning and reduction of time scales from threat-detection to termination in the field. The Company's primary focus is on cutting-edge technologies and large distribution networks including high resolution synthetic aperture radar satellites (SAR) and satellite images; ground high performance radars for intrusion detection and electronic surveillance / access control markets such as biometric, radio frequency identification (RFID), real time locating systems (RTLS) and closed-circuit television (CCTV).

Forward-Looking Statements
This press release contains 'forward-looking statements' as defined in the U.S. Private Securities Litigation Reform Act of 1995. These forward-looking statements are based upon currently available competitive, financial, and economic data and management's views and assumptions regarding future events. Such forward-looking statements are inherently uncertain. 4C Controls cannot provide assurances that any prospective matters described in the press release will be successfully completed or that it will realize the anticipated benefits of any transactions. Actual results may differ materially from those projected as a result of certain risks and uncertainties, including but not limited to: global economic and market conditions; the war on terrorism and the potential from war or other hostilities in other parts of the world; availability of financing and lines of credit; successful integration of acquired or merged businesses; changes in interest rates; management's ability to forecast revenues and control expenses, especially on a quarterly basis; unexpected decline in revenues without a corresponding and timely slowdown in expense growth; its ability to retain key management and employees; intense competition and the ability to meet demand at competitive prices and to continue to introduce new products and new versions of existing products that keep pace with technological developments, satisfy increasingly sophisticated customer requirements and achieve market acceptance; relationships with significant suppliers and customers; as well as other risks and uncertainties, including but not limited to those detailed from time to time in the 4C Controls SEC filings. 4C Controls undertakes no obligation to update information contained in this release.

MULTIMEDIA AVAILABLE:http://www.businesswire.com/cgi-bin/mmg.cgi?eid=5770177

Contact:
For 4C Controls Inc.
Media:
Bob Leahy, 202-550-4294
rdleahy@msn.com
or
Analysts:
Gerry Sullivan, 908-273-4442
gerry.sullivan@4Ccontrols.com

Source: 4C Controls Inc.
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About 4C Controls

4C Controls Inc., "4C""FOUR" is an early stage company offering high technology integrated security solutions providing real-time early warning and reduction of time scales from threat-detection to termination in the field. 4C's primary focus is on cutting-edge technologies and large distribution networks including high resolution synthetic aperture radar satellites (SAR) and satellite images; ground high performance radars for intrusion detection and electronic surveillance access control markets such as biometric, radio frequency identification (RFID), real time locating systems (RTLS) and closed-circuit television (CCTV).

4C Controls is positioning itself as a leading international security and surveillance group serving security markets worldwide. 4C's aim is to achieve global superiority through cutting-edge technology and industrial development, offering diverse and integrated security and surveillance solutions. 

The 4C Market Strategy

• 4C Controls offers high technology integrated security solutions providing real-time early warning and reduction of time scales from threat-detection to termination in the field. 
• 4C Controls plans strategic mergers and acquisitions in the global security industry in order to strengthen the Company’s ability to design, manage and integrate cutting edge technological security solutions and achieve a comprehensive service offering.
• 4C Controls’ satellite plan focuses on design, building and operation of SAR satellites dedicated for earth observation and surveillance. The Company has established an alliance with Politechnico di Torino (“Polito”), one of the leading European technology and scientific research institutes.

4C Mission Statement

Mission Statement

In the wake of increasing security threats and global terrorism, safety and security are more crucial than ever to governments, individuals, commercial and residential sectors.

4C Controls is positioning itself as a leading international security and surveillance group serving security markets worldwide. The Company’s aim is to achieve global superiority through cutting edge technology and industrial development, offering diverse and integrated security and surveillance solutions.

4C biometric technology includes fingerprint authentication, iris and 3D facial recognition, face in the crowd identification and the world’s most advanced CCTV technology. 4C delivers a “High-end Security solution” to protect buildings/infrastructure to PC/network with a range of access control systems and security authentication products. 4C systems are flexible, enabling a tailored solution for each customer’s specific need.

Recent News from 4C Controls

Press Release Source: 4C Controls Inc.
Thursday August 21, 8:30 am ET

NEW YORK--(BUSINESS WIRE)--4C Controls Inc. (OTCBB: FOUR.OB - News) today announced it has appointed Major General Khalid Abdulla Mabarak Al Buainain, Commander & Chief of UAE Air Force and Air Defense (Ret.), as Vice President for Middle East Military and Defense Security.

Major General Khalid possesses significant experience and knowledge in the security and surveillance industry, all of which will provide strong added value for 4C Controls in developing business operations in the GCC (Gulf Countries Council) and the extended MENA (Middle East North Africa) region. Given his worldwide network, he will be a significant contributor in the build-up and consolidation of excellent business relationships with government bodies and key industrial figures. MORE

Press Release Source: 4C Controls Inc. 
Monday August 18, 9:00 am ET 

NEW YORK--(BUSINESS WIRE)--4C Controls Inc. (OTCBB: FOUR.OB - News) today announced it has appointed FBI Supervising Special Agent (Ret.) Dr. Philip Hayden as its Vice President, Security Assessment & Threats Analysis. MORE
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NEW YORK--(BUSINESS WIRE)--4C Controls Inc. (OTCBB: FOUR.OB - News) today announced it has entered into a strategic alliance with Sire Contracting Company in Dubai, United Arab Emirates. Under the terms of the alliance, 4C Controls will be the exclusive provider of high technology security and surveillance solutions for all of Sire’s current projects, including the following: 

Atlantis - The Palm Jumeirah – Ocean themed 2,000 room resort similar to sister hotel in Bahamas, to be on 120 acres of the Crescent on Palm Jumeirah; expected to have more than 65,000 marine animals on display. 
SAMA Lagoons – 40 kilometers of world class commercial office space, business and retail properties, residences, hotels, and leisure venues on Dubai Creek in a new city of 7 districts divided into 14 suburbs. 
Jumeirah Park Villas – 350 hectares in the heart of Dubai’s most desirable district being constructed as a secure, family-oriented residential community consisting of 2,000 properties. 
TechnoPark – Jebel Ali Free Zone labor accommodations for 6,000 persons in phase one with expected growth in subsequent phases to accommodate an additional 14,000 persons. MORE
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Financial Highlights For 4C Controls

OTCBB: FOUR

Recent Trade: $2.60
52wk Range: 0.15 - 10.69 
Avg Vol (3m): 125,498
Market Cap: 115.26M 
Sector: Protection Services

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The chart below tells a story to which every investor should pay close attention. 4C Controls has made a formal plea to the Securities & Exchange Commission (SEC) to take action against the perpetrators of intentionally misleading and negative misstatements made in public attacks on the Company. The Company has been subject to short sale attacks caused by websites known for disseminating misleading information to create panic in the market and artificially manipulate share prices. Initial analysis of the short sellers’ patterns indicates a highly organized attack by several players acting as a group. 

The company assets that this action has seriously and adversely affected the Company as a result of false accusations of violations of law, misleading and baseless innuendo impugning the Company, and other material misstatements and omissions. The Company has posted a copy of its letter to the Commission on its website.  Click on this link to read the entire letter: http://www.4ccontrols.com/news/18Aug08b.pdf

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Meanwhile, take a close look at this company, its cutting-edge technology, its depth of highly experienced management and the market opportunity that it enjoys.  Then take a look at the chart below and decide if this equity is trading where it should be or if indeed, its price may have been artificially deflated by the aforementioned misleading and negative misstatements - thereby creating an immediate opportunity for you.

To view all of 4C's filings at the SEC: Click Here

Company Contacts

4C Controls Inc.
1230 Avenue of the Americas, 7th Floor
New York, NY 10020

Phone: 917-639-4305
Web Site: http://www.4CControls.com

Investor & Media Contacts: Bob Leahy
202/550-4294 - rdleahy@msn.com
 

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