Cybex Computer Products Announces Agreement With Mobility Electronics for Investment, Licensing and Joint Product Development.
HUNTSVILLE, Ala.--(BUSINESS WIRE)--March 10, 2000
Cybex Invests $5 Million in Mobility Electronics' Convertible
Preferred Stock in Exchange for Split Bridge(TM) Licensing Rights,
Private Label Agreement and Joint Development Effort
Cybex Computer Products Corporation (Nasdaq/NM:CBXC), the world's premier provider of Keyboard, Video, and Mouse (KVM) switching, extension and remote access solutions, today announced a strategic partnership with Mobility Electronics Inc., a pioneer in remote PCI bus technology and universal docking solutions for notebook and handheld computers. As part of the strategic relationship, Cybex made a $5 million equity investment in Mobility Electronics, which filed a registration statement for an initial public offering (IPO) on Friday, February 11, 2000.
As a result of its investment, Cybex will receive convertible preferred stock, which will convert into common stock upon completion of Mobility Electronics' IPO. Cybex will also receive a non-exclusive license in certain applications for Mobility Electronics' patent pending Serialized PCI Split Bridge technology(a)--the basis for the world's first and only universal 32-bit docking solutions for portable and handheld computers.
The agreement further provides for Mobility's cross licensing of certain Cybex technologies, the potential integration of Mobility's Split Bridge technology with Cybex's KVM switching technology and the private labeling of select Mobility Electronics products to Cybex. In addition, the agreement provides for potential joint development of products and technology for the KVM switch, desktop computer and server markets, as well as the inclusion of the Split Bridge and EasiDock(R) logos into all applicable Cybex products.
Commenting on the announcement, Stephen F. Thornton, president and chief executive of Cybex Computer Products Corporation, said, "This alliance demonstrates our continuing commitment to leadership in the fast-growing market for KVM switch solutions. We believe that our KVM technology naturally extends into the laptop and handheld computer market and are excited about Mobility's digital technology and the potential opportunities that could result from this partnership."
"This strategic relationship is a significant step toward Mobility's objective of capitalizing on the opportunities for Split Bridge technology in a wide variety of areas," said Charles Mollo, president and chief executive officer of Mobility Electronics. "The KVM switch market, the desktop computer market, and the server market are natural applications for our remote PCI bus capability--each with significant market potential driven by the growth of the Internet."
Mobility Electronics' Split Bridge technology was developed in conjunction with Philips Electronics and Molex and provides computer users with a "no compromises" docking solution that not only is compatible with most present and future laptop models, but also allows performance and expandability indistinguishable from that of a desktop system. Mobility Electronics EasiDock(R) 1000, 2000 and 3000 universal docking station products utilize the Split Bridge technology.
About Cybex Computer Products Corporation
The premier provider of network hardware to control and extend server access for today's growing networks, ASP/ISP server farm environments and enterprise data centers, Cybex Computer Products Corporation (Nasdaq: CBXC) designs, develops and manufactures systems to make server management more efficient. Founded in 1981, Cybex addresses the need to consolidate PC and server control and reduce equipment redundancy and clutter. The Company built its reputation for excellence as a leader in KVM switching, a technology that allows network administrators to control multiple computers from a single keyboard, video monitor and mouse. Cybex has leveraged its server access and management expertise to expand the product line into a comprehensive line of scalable, platform-independent systems that give administrators local and remote control of network hardware devices.
Headquartered in Huntsville, Alabama, Cybex has manufacturing facilities in the United States and Ireland, and sales offices throughout the world. With the largest engineering and support staffs in the industry, Cybex leads the way in innovation and quality from its R&D centers in Steinhagen, Germany, Shannon, Ireland and Huntsville, Alabama. For more information about Cybex and its products, visit the company's Web site at www.cybex.com.
About Mobility Electronics, Inc.
Mobility Electronics is a pioneer of remote PCI bus technology and a provider of innovative, easy-to-use, and affordable connectivity and power products for portable computers and handheld computing devices. With headquarters in Scottsdale, Arizona, Mobility Electronics has created strategic partnerships with Molex Inc. (manufacturer of advanced connector and cable equipment for the computer industry), 3Com, Philips Electronics and Solectron Corporation. Mobility Electronics markets its family of EasiDock universal docking solutions through an extensive network of OEM, distributor and reseller business partners. For information on Mobility Electronics' products and services, call 480/596-0061. Visit Mobility Electronics on their Web site at www.mobilityelectronics.com.
Statements contained in this press release which are not historical information, including, without limitation, estimates of future sales growth and increases in market demand and future research and development expenses, are forward-looking statements as defined in the Private Securities Litigation Reform Act of 1995. Such forward-looking statements are subject to a number of risks and uncertainties that could cause actual results to differ materially from those projected or implied. Such potential risks and uncertainties include, but are not limited to: potential reductions or delays in orders from new or existing customers; development of expanded reseller channels; development of international distribution networks; intensely competitive industry with increasing price competition; a limited number of potential new OEM customers; ability to obtain and protect proprietary rights; ability to grow new businesses and successfully integrate and operate any acquired businesses; insufficient, excess or obsolete inventory; continued success in technological advances, including development and implementation of new processes and strategic products for specific market segments; ability to develop and introduce new products on a timely basis; variability of gross margins; impact on the Company's business due to internal systems or systems of suppliers and other third parties adversely affected by year 2000 problems; general business and economic conditions; and other factors described from time to time in the Company's Securities and Exchange Commission filings, including its Forms 10-K, 10-Q and 8-K. Readers are cautioned not to place undue reliance on forward-looking statements, which speak only as of the date hereof.
(a) Patents pending.
Split Bridge is a trademark and EasiDock is a registered trademark of Mobility Electronics Inc.
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|Date:||Mar 10, 2000|
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