ADIC SPIN-OFF COMPLETED, SHARES TRADE ON NASDAQ; COMPANY HAS NO DEBT, $10 MILLION CASH.REDMOND, Wash.--(BUSINESS WIRE)--Oct. 16, 1996--ADVANCED DIGITAL INFORMATION CORP. (NASDAQ/NMS Symbol:ADIC) today announced that its spin-off The situation that arises when a parent corporation organizes a subsidiary corporation, to which it transfers a portion of its assets in exchange for all of the subsidiary's capital stock, which is subsequently transferred to the parent corporation's shareholders. from Interpoint Corp. has been completed and that its shares will begin trading on the 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 National Market System under the symbol "ADIC" on Oct. 17, 1996. ADIC common stock is being distributed on a one share for one share basis to Interpoint shareholders of record as of the close of business on Oct. 15. Subsequent to the distribution, Interpoint Corp. was merged into a subsidiary of Crane Co. (NYSE NYSE See: New York Stock Exchange Symbol:CR) in exchange for .091183 shares of Crane stock for each Interpoint share. Based upon the average closing price for Crane shares over the ten trading days In Business, the trading day is the time span that a particular stock exchange is open. For example, the New York Stock Exchange is, as of 2006, open from 09:30AM to 4:00PM. Trading days never take place on weekends. through Oct. 15, the per share exchange ratio of Crane stock is valued at $4.10 per Interpoint share. Prior to the spin-off, Interpoint made a capital contribution to ADIC which included $8 million in forgiveness of intercompany debt and $10 million in cash for working capital purposes. Peter van Oppen, ADIC Chairman and Chief Executive Officer, said "We are extremely pleased to have completed a complicated transaction which has left ADIC debt-free with approximately $10 million in cash. The combination of this cash and an unused $10 million bank line of credit should provide adequate resources to fund our working capital requirements Capital requirements Financing required for the operation of a business, composed of long-term and working capital plus fixed assets. for the foreseeable future." ADIC sales have grown at a compounded annual rate of approximately 92 percent over the last 10 quarters through July 31 and sales for the most recent quarter were $15.2 million. The company's fourth quarter and 1996 fiscal year will end on Oct. 31. "We believe we are extremely well-positioned to continue as a major player in the rapidly growing tape back-up market," van Oppen said. Founded in 1984, ADVANCED DIGITAL INFORMATION CORP. (ADIC) is among the world's leading producers of automated tape data libraries for network and workstation markets. Headquarters, manufacturing and design teams are located in Redmond. European headquarters is located outside Paris with regional sales offices across the United States United States, officially United States of America, republic (2005 est. pop. 295,734,000), 3,539,227 sq mi (9,166,598 sq km), North America. The United States is the world's third largest country in population and the fourth largest country in area. and Europe. -0- All forward-looking statements forward-looking statement A projected financial statement based on management expectations. A forward-looking statement involves risks with regard to the accuracy of assumptions underlying the projections. made by the company involve risks and uncertainties, including technical and competitive factors, which could cause results to differ materially. Such risks are detailed in ADIC's Form 10 Information Statement on file with the SEC. CONTACT: Peter van Oppen, 206/881-8004, Ext. 448 Chuck Stonecipher, 206/881-8004, Ext. 430 Internet address There are two kinds of addresses that are widely used on the Internet. One is a person's e-mail address, and the other is the address of a Web site, which is known as a URL. Following is an explanation of Internet e-mail addresses only. For more on URLs, see URL and Internet domain name. :invest@ADIC.com |
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