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Datalink Acquires Storage Solutions Provider Midrange Computer Solutions, Inc.


Acquisition Expands Reach in Existing and Key New Markets

MINNEAPOLIS -- Datalink Corporation Datalink Corporation (NASDAQ: DTLK) is an American data storage corporation with operations throughout the United States. The company engages in the design, installation, and support of data storage infrastructures that store, protect, and provide continuous access to  (Nasdaq:DTLK), a leading independent information storage architect, today announced that it has acquired privately held Midrange Computer A medium-sized computer system or server. Midrange computers encompass a very broad range and reside in capacity between high-end PCs and mainframes. They cost from $25,000 to more than a million. IBM's AS/400s (iSeries) and HP's 3000 and Alpha families are examples.  Solutions, Inc. (MSCI). Based near Chicago, MCSI MCSI Multiple Capture Single Image
MCSI Mining Consulting Services, Inc.
mcSi Microcrystalline Silicon
MCSI Motorola Cellular Services, Inc.
MCSI Multi-Channel Communications Sciences Inc.
MCSI Multi-Media Chunk Stream Identifier
 is a storage solutions provider with 14 offices across the United States United States, officially United States of America, republic (2005 est. pop. 295,734,000), 3,539,227 sq mi (9,166,598 sq km), North America. The United States is the world's third largest country in population and the fourth largest country in area. . The acquisition strengthens Datalink's presence in existing markets and expands its reach into a number of key new markets.

"This is an exciting opportunity," said Charlie Westling, Datalink 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. . "The acquisition of MCSI increases our revenue base by approximately one-third and expands the number of enterprise customers we serve. It also extends our market presence throughout the United States, which is one of our key strategies for further growth."

A leading solutions provider, MCSI provides consulting, storage solutions and services to a large base of U.S. customers in financial services The examples and perspective in this article or section may not represent a worldwide view of the subject.
Please [ improve this article] or discuss the issue on the talk page.
, communications, healthcare and manufacturing. Profitable since its inception, MCSI's 2006 revenues were approximately $47 million.

Datalink's purchase price of MCSI is $14 million, consisting of $5 million in cash and $9 million in Datalink common stock. Datalink will record a one-time charge associated with the acquisition in the first quarter of 2007 of approximately $700,000, or $.04 per fully diluted di·lute  
tr.v. di·lut·ed, di·lut·ing, di·lutes
1. To make thinner or less concentrated by adding a liquid such as water.

2. To lessen the force, strength, purity, or brilliance of, especially by admixture.
 share. Based on its preliminary analysis, the company expects the acquisition to be accretive to 2007 earnings by approximately $.02 to $.04 per fully diluted share, excluding one-time integration charges and amortization of intangibles.

Westling said, "Like Datalink, MCSI management and employees have built a solid track record of delivering high-quality solutions and services and have established a respected and loyal customer base. The completion of this acquisition is great news for our customers, employees, partners and shareholders. We will increase the size of our talented sales and professional services (job) professional services - A department of a supplier providing consultancy and programming manpower for the supplier's products.  teams, gain entry into new markets, and expand our presence in the Northeast, Midwest, South, and southern California Southern California, also colloquially known as SoCal, is the southern portion of the U.S. state of California. Centered on the cities of Los Angeles and San Diego, Southern California is home to nearly 24 million people and is the nation's second most populated region, . We look forward to serving this new base of customers."

Lodi Lodi, city, Italy
Lodi (lô`dē), city (1991 pop. 42,250), Lombardy, N Italy, on the Adda River, near Milan. It is an important dairy and light industrial center.
 Vercelli, MCSI president and CEO, commented, "Becoming part of Datalink is a significant benefit for our customers and employees. During our 11-year history, we have always been proud of the solutions and services we deliver to customers. With the addition of Datalink's technical skills, its expanded services set and 24x7 customer support center, we can now increase the scope of our customer offering. This will provide us with a number of new revenue opportunities in the near-term and better position the combined company for solid long-term growth."

MCSI's operations will be merged with Datalink's. Datalink expects to accomplish most of the integration work during the first half of 2007. The company anticipates that there will be some overlap in capabilities and the opportunity to realize greater efficiencies. Additionally, Datalink expects to achieve annual cost savings of approximately $1 million to $2 million by mid-2007 through shared synergies. A joint integration team is currently assessing each of these areas.

Westling concluded, "By joining forces with MCSI, we are better positioned than ever to deliver comprehensive storage solutions that drive business efficiencies for our customers and yield a strong return on investment. With this acquisition, we believe we have strengthened our platform for future success."

Conference Call and Webcast Today

Datalink will hold a conference call today to discuss the acquisition. Those wishing to participate can access the call by dialing (866) 550-6338 (no later than 9:55 a.m. Central Time). Participants will be asked to identify the Datalink conference call and provide the designated identification number (9741907). A live webcast of the conference call can be heard via Datalink's website at www.datalink.com.

About MCSI

Midrange Computer Solutions, Inc. (MCSI) is a privately held company privately held company

A firm whose shares are held within a relatively small circle of owners and are not traded publicly.
 specializing in data storage protection and accessibility management. In business since 1995, MCSI is a leader in the field of Storage Area Networks (SANs) and has implemented solutions for many Fortune 500 companies. MCSI is headquartered in west-suburban Chicago and has sales and support offices across the country.

About Datalink

Datalink Corporation is an information storage architect. The company analyzes, designs, implements and supports information storage infrastructures that store, protect and provide continuous access to information. Datalink's specialized capabilities and solutions span storage area networks, network-attached storage See NAS. , direct-attached storage Direct-attached storage (DAS) refers to a digital storage system directly attached to a server or workstation, without a storage network in between. It is a retronym, mainly used to differentiate non-networked storage from SAN and NAS.  and IP-based storage, using industry-leading hardware, software and technical services.

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 provides a "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.
" for certain 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.
. This press release contains forward-looking statements, including our internal projections of the accretiveness of the acquisition, which reflect our views regarding future events and financial performance. These forward-looking statements are subject to certain risks and uncertainties, including those identified below, which could cause actual results to differ materially from historical results or those anticipated. The words "aim, "believe," "expect," "anticipate," "intend," "estimate" and other expressions which indicate future events and trends identify forward-looking statements. Actual future results and trends may differ materially from historical results or those anticipated depending upon a variety of factors, including, but not limited to: the level of continuing demand for storage, including the effects of economic conditions; competition and pricing pressures and timing of our installations that may adversely affect our revenues and profits; fixed employment costs that may impact profitability if we suffer revenue shortfalls; revenue recognition policies that may unpredictably defer reporting of our revenues; our ability to hire and retain key technical and sales personnel; our dependence on key suppliers; our ability to adapt to rapid technological change; risks associated with possible future acquisitions; fluctuations in our quarterly operating results; future changes in applicable accounting rules; and volatility in our stock price.
COPYRIGHT 2007 Business Wire
No portion of this article can be reproduced without the express written permission from the copyright holder.
Copyright 2007, Gale Group. All rights reserved. Gale Group is a Thomson Corporation Company.

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Publication:Business Wire
Date:Feb 1, 2007
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