Boca Research Inc. and Zoom Telephonics Inc. Conclude Agreement.Business Editors/Technology Writers BOCA RATON Boca Raton (bō`kə rətōn`), city (1990 pop. 61,492), Palm Beach co., SE Fla., on the Atlantic; inc. 1925. Boca Raton is a popular resort and retirement community that experienced significant industrial development in the 1970s and 80s. , Fla. & BOSTON, Mass.--(BUSINESS WIRE)--Aug. 1, 2000 Zoom(R) Acquires Boca's Global Village and Other Analog Modem A common device that converts the computer's digital pulses to tones that can be carried over analog telephone lines. See modem. Business Assets Boca BOCA Building Officials and Code Administrators International, Inc. BOCA Bird Observers Club of Australia BOCA Business Object Component Architecture BOCA Borland Object Component Architecture (Borland) Research Inc. (Nasdaq:BOCI BOCI Bank of China International BOCI Buckner Orphan Care International ) and Zoom Telephonics Inc. (Nasdaq:ZOOM) announced today that they have concluded an agreement wherein Zoom has acquired certain assets of Boca Research's Boca Global subsidiary relating to relating to relate prep → concernant relating to relate prep → bezüglich +gen, mit Bezug auf +acc the Company's analog modem business. The agreement provides Boca Research with a smooth and customer-oriented transition out of the analog modem business and into the software and engineering design services business in fulfillment of its strategic intent. Under the terms of the agreement, Zoom has acquired from Boca selected trademarks, including Global Village(TM), rights to all Global Village and Boca Research branded products, and certain Web domain names. Boca Research will continue to support all the products it has already shipped and will remain responsible for warranty, returns, and technical support for these products. In turn, Boca will outsource support to Zoom to provide customers with a single point of contact. As part of the agreement, Zoom has leased Boca's Florida based technical support facility. In general, Boca is entitled to be paid a purchase price based on sales performance as follows: $500,000 if sales by Zoom of Boca's existing products lines over the following 12 months exceed $12 million. The purchase price is subject to increase if such sales exceed certain higher levels, as provided in the agreement. Sales by Boca of its analog modem products for the quarters ended March 31, 2000 and June 30, 2000 were $4.3 million and $2.7 million, respectively. "We are excited to be bringing Boca Research and Global Village into the Zoom(R) family of telecommunications products, and we look forward to serving Boca's large customer base with new products," said Frank Manning, President 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 Zoom. "Zoom intends to introduce new products for the Macintosh(R), such as ADSL See DSL. ADSL - Asymmetric Digital Subscriber Line modems and cable modems, under the Global Village name." Bob Ferguson, CEO and Chairman of Boca Research, said, "Transitioning to a software and engineering design services company has been our stated strategy, and this announcement represents a major milestone toward the realization of this vision." Boca Research Corporate Information Founded in 1985 and headquartered in Boca Raton, Fla., Boca Research Inc., through its wholly owned subsidiary Wholly Owned Subsidiary A subsidiary whose parent company owns 100% of its common stock. Notes: In other words, the parent company owns the company outright and there are no minority owners. Inprimis Technologies Inc., is a provider of design services and technology for the development of entertainment, information and interactive systems as well as Internet-based appliances. Inprimis offers software development, product design and system engineering services to consumer electronics manufacturers, cable and telecommunications companies and Internet Service Providers Internet service provider (ISP) Company that provides Internet connections and services to individuals and organizations. For a monthly fee, ISPs provide computer users with a connection to their site (see data transmission), as well as a log-in name and password. . For more information, call (561) 997-6227 or visit the company's Web site at www.inprimis.com. Zoom Telephonics Corporate Information Zoom Telephonics, a communications leader since 1977, designs, produces, and markets dial-up modems, cable and ADSL modems, wireless LAN A local area network that transmits over the air typically in the 2.4 GHz or 5 GHz unlicensed frequency band. It does not require line of sight between sender and receiver. Wireless base stations (access points) are wired to an Ethernet network and transmit a radio frequency over an area products, home phoneline See HomePNA. networking products, and other data communication products under the Zoom(R) and Hayes(R) brand names. Zoom products are available in over 3000 of the highest volume computer retailers in the USA and over 5000 retail outlets worldwide. This release contains 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. that reflect Boca Research management's best judgment, based on factors currently known. However, these statements involve risks and uncertainties, including Boca Research's ability to transition to a software and systems solutions-based enterprise, the rate of development of the information appliance See Internet appliance. (hardware) Information Appliance - (IA) A consumer device that performs only a few targeted tasks and is controlled by a simple touch-screen interface or push buttons on the device's enclosure. market generally, the successful development and market acceptance of new products and services, the degree of competition in the market for such products and services, competitive pricing practices, and low barriers of entry into the software development and services markets. Further, a significant portion of the Company's sales is derived from a limited number of customers, the loss of one or more of which could adversely impact operating results. These and other risks are detailed in Boca Research's annual report on 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, 1999, as well as in the Company's other filings with the Securities and Exchange Commission (SEC). Such risks and uncertainties could cause actual results to differ materially from those in the forward-looking statements included in this release. This press release contains forward-looking information relating to Zoom's plans, expectations and intentions, including without limitation the ability to expand its customer base and product lines, in connection with Zoom's acquisition of the Boca analog modem assets referenced in this release. Actual results may be materially different than those expectations as a result of known and unknown risks, including those set forth below. Acquisitions involve numerous risks, including difficulties in the assimilation of operations and products of acquired businesses, the ability to manage geographically remote units and the potential loss of key employees of the acquired companies. In addition, the technologies and assets being acquired by Zoom are subject to the significant risks and uncertainties generally applicable to modem and data communications data communications, application of telecommunications technology to the problem of transmitting data, especially to, from, or between computers. In popular usage, it is said that data communications make it possible for one computer to "talk" with another. products, such as potential infringement of the intellectual property rights of others; uncertainty of new product development and introduction, project delays and the risk that newly introduced products may contain undetected errors or defects or otherwise not perform as anticipated; Zoom's dependence on a limited number of suppliers for certain key components; early stage of development of the cable and DSL DSL in full Digital Subscriber Line Broadband digital communications connection that operates over standard copper telephone wires. It requires a DSL modem, which splits transmissions into two frequency bands: the lower frequencies for voice (ordinary data communications markets; uncertainty of market growth of those markets; rapid technological change; competition; and other risks set forth in Zoom's filings with the Securities and Exchange Commission. Zoom cautions readers not to place undue reliance upon any such forward-looking statements, which speak only as of the date made. Zoom expressly disclaims any obligation or undertaking to release publicly any updates or revisions to any such statements to reflect any change in its expectations or any change in events, conditions or circumstances on which any such statement is based. |
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