Blonder Tongue Sells Its Texas Based Private Cable Television Subsidiary to DirecPath, a Joint Venture between Hicks Holdings LLC and DIRECTV.OLD BRIDGE, N.J. -- Blonder Tongue Laboratories, Inc. (AMEX AMEX See: American Stock Exchange : "BDR BDR Border BDR Bangladesh Rifles (military forces in Bangladesh) BDR Backup Designated Router (networking) BDR Bombardier (artillery rank) BDR Backup Disaster Recovery ") today announced that it has consummated the sale of BDR Broadband, LLC (Logical Link Control) See "LANs" under data link protocol. LLC - Logical Link Control , its Texas-based private cable television business, to DirecPath, a joint venture between Hicks Holdings LLC and The DIRECTV Group, Inc., for an aggregate purchase price of approximately $3.1 million. The transaction will provide Blonder Tongue with a gain of approximately $875,000 on the sale and should also result in annualized annualized Of or relating to a variable that has been mathematically converted to a yearly rate. Inflation and interest rates are generally annualized since it is on this basis that these two variables are ordinarily stated and compared. savings of approximately $525,000. The transaction also includes certain long-term equipment purchase commitments from DirecPath, which are anticipated to form the basis of a new and meaningful customer relationship. It is also anticipated that Blonder Tongue may provide DirecPath with certain systems engineering and technical services. The transaction enhances DirecPath's property portfolio, particularly in the Texas area, to provide bundled DIRECTV([R]) programming, broadband voice and data services and security to multiple dwelling communities. Commenting on the transaction, James A. Luksch, Chairman and Chief Executive Officer said, "We could not have asked for a more suitable buyer for this business. DirecPath is a leader servicing the multiple dwelling unit market. We see significant growth opportunities developing from the equipment and engineering services agreements that were negotiated as part of this transaction." DirecPath 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. , Paul Savoldelli commenting on the transaction, added "We're excited about the BDR Broadband acquisition as it enables DirecPath to quickly build the critical mass necessary to compete in major markets like Dallas and Houston, as a part of our overall buy-and-build strategy." About Blonder Tongue and BDR Broadband Founded in 1950, Blonder Tongue Laboratories, Inc. has evolved from a manufacturer of electronic equipment for the private cable industry to a principal provider of integrated network A network that supports both data and voice and/or different networking protocols. See converged network and new public network. solutions and technical services to broadband service providers. The Company designs, manufactures, and supplies a comprehensive line of equipment to deliver video (analog & digital), high speed data and voice services over integrated coaxial and fiber optic broadband networks You can assist by [ editing it] now. today and over packet based, Internet protocol networks of the future. For more information regarding Blonder Tongue or its products, please visit the Company's Web site at www.blondertongue.com or contact the Company directly at (732) 679-4000. BDR Broadband was formed by Blonder Tongue in 2002 for the purpose of acquiring video and data private cable television systems. BDR Broadband provides video and high-speed data services to MDU (1) (Multiple Dwelling Unit) A commercial or residential building with multiple offices or apartments. See BLEC. (2) (Multiply-Divide Unit) A high-speed circuit that performs multiplication and division within the CPU. communities located in Texas. About DirecPath DirecPath, a joint venture between Hicks Holdings LLC and The DIRECTV Group, Inc., was formed in May 2006 to better serve the needs of residents living in gated communities and multiple dwelling units, including apartment complexes, condominiums and town homes. In addition to outstanding customer service, DirecPath offers its customers a bundled selection of the full range of DIRECTV([R]) programming, broadband Internet and telephony. DirecPath's customers benefit from a single bill, a single installation and a single call for customer service - advantages enjoyed by those living in single-family homes. From an MDU property owner's perspective, this increases tenant satisfaction and enhances the value of the property. "Safe Harbor Safe Harbor 1. A legal provision to reduce or eliminate liability as long as good faith is demonstrated. 2. A form of shark repellent implemented by a target company acquiring a business that is so poorly regulated that the target itself is less attractive. " Statement under the Private Securities Litigation Reform Act The Private Securities Litigation Reform Act of 1995 (PSLRA) implemented several significant substantive changes affecting certain cases brought under the federal securities laws, including changes related to pleading, discovery, liability, class representation and awards fees and of 1995: The information set forth above includes "forward-looking" statements and accordingly, the cautionary statements contained in Blonder Tongue's Annual Report and Form 10-K Form 10-K A report required by the SEC from exchange-listed companies that provides for annual disclosure of certain financial information. Form 10-K See 10-K. for the year ended December 31, 2005 (See Item 1: Business, Item 1A: Risk Factors and Item 7: Management's Discussion and Analysis Management's discussion and analysis (MD&A) A report from management to shareholders that accompanies the firm's financial statements in the annual report. It explains the period's financial results and enables management to discuss topics that may not be apparent in the financial of Financial Condition and Results of Operations), and other filings with the Securities and Exchange Commission are incorporated herein by reference. The words "believe", "expect", "anticipate", "should", "project", and similar expressions identify forward-looking statements. Readers are cautioned not to place undue reliance on these forward-looking statements, which reflect management's analysis only as of the date hereof. Blonder Tongue undertakes no obligation to publicly revise these forward-looking statements to reflect events or circumstances that arise after the date hereof. Blonder Tongue's actual results may differ from the anticipated results or other expectations expressed in Blonder Tongue's "forward-looking" statements. |
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