ADIC and Benchmark Electronics Complete Expanded Outsourcing Agreement.Business Editors REDMOND, Wash.--(BUSINESS WIRE)--Nov. 24, 2003 Advanced Digital Information Corporation (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 : ADIC) announced today that it has finalized its agreement with Benchmark Electronics, Inc. (NYSE NYSE See: New York Stock Exchange : BHE BHE Ball Handling Error (volleyball) BHE Bund der Heimatvertriebenen und Entrechteten (Union of Homeless and Rightless) BHE Blenheim New Zealand BHE Byte High Enable BHE Benchmark Electrs Inc ) to expand an existing outsource manufacturing relationship to include a significant portion of ADIC's entry-level and workgroup tape automation product line. As part of the agreement, approximately 150 ADIC team members associated with manufacturing, test, and supply chain management for the transferred operations have become Benchmark employees. At the same time, Benchmark assumed ADIC's lease on its Marymoor manufacturing facility and purchased inventory associated with the product line. Under the terms of the agreement, which was first announced in early October 2003 with the signing of a letter of intent, Benchmark will provide manufacturing, configure-to-order and order fulfillment Order fulfillment (in BE also: order fulfilment) is in the most general sense the complete process from point of sales inquiry to delivery of a product to the customer. Sometimes Order fulfillment services for ADIC from the Marymoor facility as well as from other Benchmark locations worldwide. ADIC officials explained that the Benchmark agreement represents an extension and consolidation of an existing, successful strategy to outsource manufacturing for portions of its high-growth, high-volume entry-level product line. As planned, ADIC has consolidated the design activities for these products in the company's Redmond, Washington Redmond is a city in King County, Washington, USA. It is situated on the eastern edge of the Seattle urban area, in what is known as the Eastside. In 2003 the Census Bureau estimated the city population was 46,391. headquarters facility. The design and manufacture of ADIC's larger, enterprise library products--which currently takes place in Denver, Colorado and Boehmenkirch, Germany--are not affected by the agreement. ADIC's post-agreement worldwide workforce is approximately 1,100 team members. Company officials do not expect the asset sale to have a material impact on the company's results of operations. "We are pleased to have completed an agreement where all parties should benefit," said Peter van Oppen, ADIC 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. . "This agreement will give our customers the highest product quality at the lowest possible price. It will expand the range of opportunities for ADIC team members who have joined Benchmark. It will provide Benchmark with an expanded product line and manufacturing base. And we believe it will give the best return to our shareholders over the long run." "This agreement strengthens an already strong relationship between Benchmark and ADIC, and provides us with a significant opportunity to expand the alliance," said Cary Fu, President, Benchmark Electronics, Inc. "We are pleased to be able to continue to provide ADIC with exceptional products and services, and to expand the levels of support that we are able to offer to our growing customer base in the Pacific Northwest and around the world." About Benchmark Electronics, Inc. Benchmark Electronics, Inc. is in the business of manufacturing electronics and provides its services to original equipment manufacturers of computers and related products for business enterprises, medical devices, video/audio/entertainment products, industrial control equipment, testing and instrumentation products, and telecommunication equipment. Benchmark's global operations Global Operations is a first-person shooter computer game developed by Barking Dog Studios and published by both Crave Entertainment and Electronic Arts. It was released in March of 2002, following its public multiplayer beta version which contained only the Quebec map. include facilities in eight countries. Benchmark's Common Stock trades on the New York Stock Exchange New York Stock Exchange (NYSE) World's largest marketplace for securities. The exchange began as an informal meeting of 24 men in 1792 on what is now Wall Street in New York City. under the symbol BHE. About ADIC Advanced Digital Information Corporation (NASDAQ: ADIC) is a leading provider of Intelligent Storage(TM) solutions to the open systems marketplace. ADIC(R) is the world's largest supplier of automated tape systems using the drive technologies most often employed for backing up open system, client-server networks.(a) The Company's data management software, storage networking appliances, and disk-to-tape data protection solutions provide IT managers innovative tools for storing, managing and protecting their most valuable digital assets in a variety of disk and tape environments. ADIC storage products are available through a worldwide sales force and a global network of resellers and OEMs, including Cray, Dell, Fujitsu-Siemens, Hewlett-Packard, 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) , and Sun. For more information, visit www.adic.com. (a) Market position from: IDC 2001 worldwide revenue and unit market share data for all automated systems using DLT (Digital Linear Tape) A magnetic tape technology originally developed by Digital for its VAX line. The technology was later sold to Quantum, which makes it available to other manufacturers. DLT uses half-inch, single-hub cartridges similar to IBM's 3480/3490/3590 line. , SDLT (Super DLT) See DLT. , LTO (Linear Tape Open) A family of open magnetic tape standards developed by HP, IBM and Quantum (formerly the Certance subsidiary of Seagate) that are licensed to third-party vendors. LTO cartridges contain a memory that stores historical usage data. , 8mm or AIT drives; and Gartner Dataquest, Tape Automation Systems Market Shares, 2002, F. Yale, April 2003. ADIC is a registered trademark and Intelligent Storage is a trademark of Advanced Digital Information Corporation. All other trade or service marks mentioned in this document should be considered the property of their respective owners. |
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