NCI signs letter of intent with Voice It.
The two companies intend to enter into a retail sales and manufacturing agreement under which Voice It will market NCI products, under the Voice It brand name, into retail channels worldwide. Also under the intended agreement, products will be manufactured using Voice It contract manufacturers in the Pacific Rim.
NCI will focus exclusively on expansion of its OEM business. Voice It joins Sanyo Information Systems U.K. Ltd. as the second substantial OEM contract that has been negotiated during the last two months.
Bob Root, NCI's chief executive officer and president, said: ``The plan we developed for NCI a year ago set two major objectives.
``First was to become an OEM provider of digital recording components, software and products for the sound, image and data- acquisition markets. We have made substantial progress towards that goal with our new OEM relationships. The Voice It agreement will provide established channels of retail distribution for our current and future product innovations.
``Our second goal was to significantly reduce manufacturing costs. Our relationship with Voice It will lower manufacturing costs substantially, increase margins and create a broad retail presence.''
Dennis Altbrandt, chief executive officer of Voice It, stated: ``Our company has a dominant share of the personal digital recorder market. We have over 5,000 retail outlets in the United States and 15 distributors internationally for our products. NCI's dictation unit and computer interface opens additional markets with computer retailers, government and corporate customers.''
Altbrandt added: ``We believe that we are one of the lowest- cost, highest-quality manufacturers in our industry. We can bring immediate cost reductions to the NCI products, while significantly increasing volumes.''
Altbrandt continued: ``The distribution and manufacturing alliance is potentially the first step toward an expanded future business relationship. We believe that voice technology is an enabling information source.
``Today, the voice market is in its infancy but has the potential to grow rapidly. Our alliance can bring critical mass to both companies and leverage on our individual strengths.''
Root added: ``We both agree that pursuing an expanded relationship in the future will position us to potentially have a dominant presence in the digital voice-recording market.
``Our companies are very complementary. There are virtually no overlaps in the critical areas of sales, marketing, technology and manufacturing. I look forward to quickly creating and implementing this new strategic alliance.''
NCI (formerly Norris Communications Corp.) is a Delaware-based publicly traded corporation on NASDAQ at trading symbol NCII. It markets branded products worldwide through distributors, resellers, value-added resellers, government resellers, catalogs and chain stores.
The OEM division markets the NCI MicroOS imbedded-systems software operating system, Multichip modules, private-label products and custom-designed products to computer, dictation systems, computer peripheral and telecommunications companies worldwide.
The company has patented the Flashback Digital Voice Recorder, sound-recording techniques and features, which position it as the world leader in digital flash memory audio recording. The company operates out of its world headquarters in Poway, Calif. (San Diego), and through NCI Ltd. in the United Kingdom.
Voice It Worldwide designs, develops and markets personal consumer-electronics products. Voice It recorders use computer-chip technology to capture ideas, thoughts and reminders in portable, handheld products, about the size of a credit card.
The products are available in approximately 5,000 retail outlets, including department stores, catalog showrooms, office superstores, mass merchants and electronic specialty stores in the United States and in 15 countries internationally. Voice It Worldwide common stock trades on the NASDAQ SmallCap Tier of the NASDAQ Stock Market under the symbol MEMO.
CONTACT: NCI, Poway
Bob Root, 619/679-1504
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|Date:||Dec 6, 1996|
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