Alpha Microsystems announces sale of Pick64 software line, divestiture of veterinary systems operation.

SANTA ANA, Calif.--(BUSINESS WIRE)--March 28, 1995--Alpha Microsystems (NASDAQ/NM:ALMI) Tuesday announced that as part of its efforts to refocus its operations on markets with greater growth potential, it has sold its Pick64 software product line to Marlborough, Mass.-based Sequoia Systems (NASDAQ/NM:SEQS), and has agreed to divest its Veterinary Systems Operation (VSO) to VSO's largest customer, Veterinary Centers of America (NASDAQ/NM:VCAI) of Santa Monica, Calif.

Terms of the transactions were not disclosed. This follows the March 10 announcement by Alpha Microsystems that it has slated a phase-out of its Belgian subsidiary and had reached an agreement with privately held KeyNet Inc. of Windham, N.H., to take over the company's imaging product lines.

According to Alpha Microsystems President and CEO Douglas J. Tullio, these moves reflect a continuation of the company's strategy to concentrate its resources on selected growth-oriented niche markets and to improve the performance of the company's service operations.

The combined effect of the transactions announced Tuesday will be a positive cash and earnings impact on the company's fiscal year 1996 first quarter ending May 28, 1995.

Tullio commented: "These moves will enable us to further concentrate resources in fiscal 1996 on our service operations to improve upon that division's performance. In addition, they will enable us to provide additional resources to fuel the growth of our most promising vertical-niche software applications, particularly PANDA for educational food-service organizations and Alpha Healthcare for dental practices."

Tullio added, "I believe the acquisition of Pick64 by Sequoia will offer our VARs the added dimension of additional support and development capabilities, as well as an expanded product line for migrating their customers to Sequoia's larger mid-range product line, should the need arise."

Alpha Microsystems plans to work closely with Sequoia to assure Pick64 VARs and end users a smooth transition to the expanded Sequoia support network and product lines. During the transition, VARs will be able to purchase their Intel-based hardware directly from Alpha Microsystems and the current version of Pick64 from Sequoia Systems.

"I am very pleased with VCA's acquisition of our veterinary software," Tullio added. "I believe that VCA will not only continue to provide the VSO software to the veterinary marketplace, but will also bring to the market the added benefit of its in-depth knowledge of the needs of individual veterinary practices, now and in the future."

Alpha Microsystems is an information technology products and service provider concentrating on vertical market niches, served both directly and through value-added resellers and distributors. The company also provides consulting, networking, software support and maintenance services, with approximately 50 locations in North America and in the United Kingdom.

CONTACT: South Coast Communications

Erik Randerson, 714/252-8440