EBIZ Enterprises and Linux NetworX Sign Letter of Understanding; EBIZ to Acquire Linux NetworX.Business Editors/High-Tech Writers HOUSTON--(BUSINESS WIRE)--March 16, 2001 EBIZ EBIZ Electronic Business Enterprises Inc. (OTCBB OTCBB See OTC Bulletin Board (OTCBB). :EBIZ), a manufacturer of specialized appliance servers and the leading vendor-neutral provider of Open Source products and solutions, today announced the planned acquisition of Linux NetworX Inc. of Sandy, Utah Sandy (also known as Sandy City) is a city in Salt Lake County, Utah and a suburb of Salt Lake City. As of the 2000 census, the city had a total population of 88,418. A 2006 estimate placed its population at 94,203, making it the fifth-largest city in Utah. . The announcement was made today by EBIZ 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. Dave Shaw and Linux NetworX President Glen Lowry. Under terms of the letter of understanding Linux NetworX will maintain their current research and development operation and sales team in Salt Lake City and will broaden their manufacturing and corporate functions with resources available in the EBIZ Technology Center in Houston. The financial terms of the deal were not disclosed. "Since EBIZ and Linux NetworX have strengths that complement each other well, this is a win-win situation for both companies," said EBIZ CEO Dave Shaw. "Linux NetworX will benefit from the economies of scale afforded by the existing EBIZ manufacturing operations Manufacturing operations concern the operation of a facility, as opposed to maintenance, supply and distribution, health, and safety, emergency response, human resources, security, information technology and other infrastructural support organizations. . EBIZ benefits from the entry to additional, high-end market segments that the Linux NetworX intellectual property and High Performance Computing (HPC (Handheld PC) A palmtop computer that weighs less than one pound and runs specialized versions of popular applications. Microsoft coined the term for its Windows CE operating system, which is an abbreviated version of Windows. See Pocket PC. ) offering will provide. Together, we'll be able to leverage the experienced EBIZ sales team to deliver high-end Linux clusters in both the enterprise and channel marketplaces." This acquisition quickly increases the breadth and scope of the EBIZ server product line, which previously included Terian white box products and the recently announced ezNET line of server appliances. "We see the opportunity for continued market expansion by this planned acquisition," said Linux NetworX president Lowry. "Our high-end Linux cluster products will immediately benefit from the state-of-the-art infrastructure of the Houston-based EBIZ Technology Center. We'll continue to supply high-performance Linux computing platforms for applications in government, seismic and biotech markets while also applying significant portions of our technology to the Terian line of server products manufactured by EBIZ. Our High Performance Internet (HPI HPI abbr. history of present illness ) strategy will further leverage the ezNET line of server appliances." About Linux NetworX Linux NetworX (www.linuxnetworx.com) brings its powerful cluster technology to those demanding high performance and high availability Also called "RAS" (reliability, availability, serviceability) or "fault resilient," it refers to a multiprocessing system that can quickly recover from a failure. There may be a minute or two of downtime while one system switches over to another, but processing will continue. systems. With the use of cluster computer technology, a method of linking multiple computers through high-speed networks to form a single and more powerful system, Linux NetworX provides solutions for companies with high-computing needs, including research, industry, government, ISPs, ASPs, and other technological fields. Through innovative hardware, complete cluster management software and solid service and support, Linux NetworX provides end-to-end clustering solutions. To date, the company has built some of the largest cluster systems in the world and has developed unique hardware and versatile software to facilitate overall system management. Linux NetworX has offices in Utah, New York New York, state, United States New York, Middle Atlantic state of the United States. It is bordered by Vermont, Massachusetts, Connecticut, and the Atlantic Ocean (E), New Jersey and Pennsylvania (S), Lakes Erie and Ontario and the Canadian province of , Calif. and Texas with various international distribution outlets. About EBIZ Enterprises Incorporated EBIZ Enterprises Incorporated (www.ebizenterprises.com) is a developer and provider of computer systems, software and accessories for the business computer market. The Company also manufactures and markets the Terian line of computing systems. The Company's products are sold directly to end users through its Web sites and to corporate customers and value-added resellers through its sales teams. The EBIZ Web presence includes LinuxMall.com, www.jbsi.com and TheLinuxStore.com. EBIZ's 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. , PartnerAxis.com, is an information exchange center that specializes in bringing together hardware companies, software manufacturers, VARs and end users to deliver Open Source solutions to the business world. This press release contains statements that constitute "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. " as that term is defined by 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. 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 "Reform Act"). EBIZ Enterprises Inc. claims the protection of the 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 forward-looking statements contained in the Reform Act. These forward-looking statements are often characterized by the terms "may," "believes," "projects," "expects," or "anticipates," and do not reflect historical facts. Specific forward-looking statements contained in this press release include, but are not limited to, financial and operational projections and benefits from the planned acquisition. Forward-looking statements involve risks, uncertainties and other factors, which may cause actual results, performance or achievements of EBIZ Enterprises Inc. to be materially different from those expressed or implied by such forward-looking statements. Other factors include those risk factors and cautionary statements made in EBIZ Enterprises Inc.'s annual report on Form 10-KSB for the period ended June 30, 2000 and the quarterly report on Form 10-QSB for the period ended Dec. 31, 2000. Other factors that EBIZ Enterprises Inc. is currently unable to identify or quantify, but may arise or become known in the future. In addition, the foregoing factors may affect generally EBIZ Enterprises Inc.'s business, results of operations and financial position. Forward-looking statements speak only as of the date the statement was made. EBIZ Enterprises Inc. does not undertake and specifically disclaims any obligation to update any forward-looking statement. |
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