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4Front Technologies, Inc. Makes First Italian Acquisition.


LONDON, England--(BUSINESS WIRE)--September 24, 1998--

- $3.45 Million Investment Further Strengthens 4Front's

Pan-European Computer Service Capability -

4Front Technologies, Inc., ("4Front") (NASDAQ NASDAQ
 in full National Association of Securities Dealers Automated Quotations

U.S. market for over-the-counter securities. Established in 1971 by the National Association of Securities Dealers (NASD), NASDAQ is an automated quotation system that reports on
 NMS/EASDAQ Symbol: FFTI FFTI Federazione Field Target Italia (Italian)
FFTI Feel Free to Ignore
) today announced that it has acquired the leading Italian computer service and networking company, Memorex Telex S.p.A. ("MT"), for a total maximum investment of $3.45 million. $1.1 million cash consideration was paid on completion to various interests, including Morgan Guaranty Trust Company of New York New York, state, United States
New York, Middle Atlantic state of the United States. It is bordered by Vermont, Massachusetts, Connecticut, and the Atlantic Ocean (E), New Jersey and Pennsylvania (S), Lakes Erie and Ontario and the Canadian province of
 and, subject to the achievement of certain profit targets by July 1999, further consideration of up to $750,000 is payable in cash or 4Front shares. In addition, 4Front will invest $1.6 million directly in MT to assist in the development of its business.

4Front anticipates that MT will contribute revenues of at least $20 million in the first 12 months after the acquisition, and that it will be accretive to earnings in calendar 1999.

Based in Milan, with offices nationwide, MT is one of the 10 leading independent hardware maintenance companies in Italy and 4Front now ranks in the top 10 of such companies in 4 European countries - the United Kingdom, France, Belgium and Italy. MT is also IBM's main support and networking partner in Italy and other important business partners include Compaq, Cisco, Sun, Acer, Novell and Microsoft. MT's major customers include Telecom Italia Telecom Italia is formerly a partially state-owned Italian telco. It was once known as SIP, and it has the largest user base in Italy.

Telecom Italia also owns shares in Telecom Argentina and Telecom Personal, fixed and cellular networks in Argentina.
, Alitalia, Fiat, ENI, Shell, Citicorp, Banca d'Italia Banca d'Italia is the central bank of Italy and part of the European System of Central Banks. It is located in Palazzo Koch, Roma, via Nazionale. The bank's current governor is Mario Draghi, who took the office on January 16, 2006. , Nestle and the Italian Ministry of Justice. MT has a particularly strong presence in the Italian financial sector, where its customers include the top 5 Italian insurance companies and 10 of the top 20 Italian banks.

Anil Doshi, Chairman and CEO (1) (Chief Executive Officer) The highest individual in command of an organization. Typically the president of the company, the CEO reports to the Chairman of the Board.  of 4Front said, "The acquisition of MT in Italy is another very important step in our plan to establish ourselves as a leading Pan-European independent IT service provider. MT gives us a strong foothold in another key European country, and brings an excellent customer-base and valuable management expertise. MT's close relationship with IBM (International Business Machines Corporation, Armonk, NY, www.ibm.com) The world's largest computer company. IBM's product lines include the S/390 mainframes (zSeries), AS/400 midrange business systems (iSeries), RS/6000 workstations and servers (pSeries), Intel-based servers (xSeries)  provides another dimension to 4Front's already strong relationship with IBM in the UK and France. MT's own business infrastructure offers good scope for growth while 4Front will be looking to develop business further through cross-marketing and through the extension of its broader service range into the Italian market."

4Front Technologies, Inc., is a leading provider of information technology solutions, which consist of specialized computer services Data processing (timesharing, batch processing), software development and consulting services. See service bureau, SaaS and ASP.  and complementary products, primarily to blue-chip corporations in the United Kingdom and, to a growing extent, Continental Europe Continental Europe, also referred to as mainland Europe or simply the Continent, is the continent of Europe, explicitly excluding European islands and, at times, peninsulas. . 4Front's services include hardware maintenance, help desk support, network services, specialized software services and products and the supply of high-end storage systems. Customers of 4Front include British Petroleum, British Telecom, Computer Sciences Corp., Dupont, IBM, Reuters, Pfizer, NatWest Capital Markets, JP Morgan and the UK Ministry of Defense. Additional information on 4Front can be found on the Company's website at www.4fti.com.
COPYRIGHT 1998 Business Wire
No portion of this article can be reproduced without the express written permission from the copyright holder.
Copyright 1998, Gale Group. All rights reserved. Gale Group is a Thomson Corporation Company.

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Publication:Business Wire
Geographic Code:4EUIT
Date:Sep 24, 1998
Words:470
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