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Savoir Technology Group Announces Agreement to Acquire Distribution Segment of REAL Applications' IBM Reseller Business.


CAMPBELL, Calif.--(BUSINESS WIRE)--Sept. 9, 1998--Savoir Technology Group, Inc. (NASDAQ NASDAQ
 in full National Association of Securities Dealers Automated Quotations

U.S. market for over-the-counter securities. Established in 1971 by the National Association of Securities Dealers (NASD), NASDAQ is an automated quotation system that reports on
 National Market - SVTG SVTG Sudanese Victims of Torture Group ), a leading midrange systems distributor, today announced that it has signed an agreement to acquire certain assets of REAL Applications, Ltd.'s ("REAL") distribution business from REAL and its parent company, El Camino Resources, Ltd. ("El Camino"). Effective September 8, 1998, the REAL distribution segment will be absorbed by, and operate as a part of, Business Partner Solutions, Inc. ("BPS (Bits Per Second) The measurement of the speed of data transfer in a communications system.

1. BPS - Basic Programming Support
2. bps - bits per second
"), a subsidiary of Savoir that concentrates on distribution sales and support of IBM (International Business Machines Corporation, Armonk, NY, www.ibm.com) The world's largest computer company. IBM's product lines include the S/390 mainframes (zSeries), AS/400 midrange business systems (iSeries), RS/6000 workstations and servers (pSeries), Intel-based servers (xSeries)  midrange servers. REAL Applications, Ltd., with headquarters in Woodland Hills, California, will continue to resell IBM AS/400(R) and RS/6000(TM) midrange systems, IBM S/390(R) enterprise systems, high end data storage (including tape automation), and IBM Netfinity(R) servers, as well as midrange software and platform-compatible middleware solutions to the end-user customer community.

In conjunction with this agreement, REAL's direct reseller business will affiliate with BPS and purchase its IBM RS/6000, RS/6000 SP See IBM SP.  and Netfinity products from BPS.

The total consideration to be paid for REAL Applications' distribution business segment is $12,875,000 in cash, paid at closing. For the most recent twelve months, the distribution business acquired from REAL generated net revenues of approximately $80 million.

"The acquisition of REAL's distribution unit marks a significant milestone in our IBM distribution business," said Scott Munro, Chairman 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 Savoir Technology Group. "Combining REAL's distribution business with BPS' base business and steady growth makes Savoir the largest IBM midrange distributor in the world."

"We also see tremendous opportunities in having REAL, IBM's largest direct reseller, as an RS/6000 partner and in establishing a strategic alliance with El Camino," Munro added. "El Camino's expertise in providing solutions and leasing services in the enterprise computing Refers to information technology in the larger company. See enterprise data and enterprise networking.  arena are complementary and additive to those offered by Savoir. The addition of REAL's distribution base to our IBM business establishes BPS as the clear leader in the IBM midrange distribution market."

Hal Barlow, Vice President and General Manager of REAL Applications, Ltd. explained the rationale behind the sale of REAL's distribution operations. "Our principal strengths lie in our end user customer relationships. We have come to realize that being an IBM direct end user reseller as well as an IBM distributor will eventually detract from detract from
verb 1. lessen, reduce, diminish, lower, take away from, derogate, devaluate << OPPOSITE enhance

verb 2.
 our primary end user focus. At the same time, the RS/6000 marketplace requires significant investments in inventory and integration, both of which are key competencies of BPS' distribution model. Since BPS is an IBM authorized assembler Software that translates assembly language into machine language. Contrast with compiler, which is used to translate a high-level language, such as COBOL or C, into assembly language first and then into machine language.  of the RS/6000 and SP lines, we believe that sourcing our requirements from them offers a better opportunity to provide better service to our end-user RS/6000 and SP customer base and satisfy their needs more efficiently."

Savoir Technology Group is an operating company operating company

A business that engages in transactions with outsiders.
 that provides its customers computing solutions to succeed in the complex technology markets in which they operate. Western Micro Technology is a division of Savoir Technology Group, Inc., and Business Partner Solutions, Inc. is a 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.
. MCBA MCBA Minnesota Center for Book Arts
MCBA Monroe County Bar Association
MCBA Master Certified Business Appraiser
MCBA Massachusetts Children's Book Award
MCBA Maricopa County Bar Association (Arizona) 
 Systems, Inc., a subsidiary of Savoir and operating under the direction of Business Partner Solutions, is a leading distributor of IBM midrange systems. UniDirect/VarCity, a division of Savoir Technology Group, concentrates on software distribution of midrange software products to resellers and Fortune 1000 companies. Savoir Technology Group provides strategic direction, corporate finance resources, and acquisition expertise for the combined entities. The Company additionally supports its operating entities with a state-of-the-art information management system, technical integration centers, and efficient logistical support to enable them to deliver to and service a growing network of customers. For more information, visit Savoir's Web site at www.svtg.com.

El Camino Resources, Ltd., with approximately $700 million in annual net revenue, is one of the largest privately held information technology lessors in the world. Through its subsidiary companies and business units, El Camino is a leading provider of technology solutions, technical support, maintenance, training, disaster recovery services and lease financing. El Camino has direct sales 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. , as well as international operations Internal Operations (I.O., IO or I/O) is a fictional American Intelligence Agency in Wildstorm comics. It was originally called International Operations. I.O. first appeared in WildC.A.T.S. volume 1 #1 (August, 1992) and was created by Brandon Choi and Jim Lee.  and affiliations in Australia, Canada, Mexico, Germany, Latin America Latin America, the Spanish-speaking, Portuguese-speaking, and French-speaking countries (except Canada) of North America, South America, Central America, and the West Indies.  and the United Kingdom. El Camino can be accessed via the Web at www.elcamino.com.

REAL Applications, Ltd. is El Camino's wholly owned subsidiary, focused on IBM AS/400 and RS/6000 midrange solutions, and IBM S/390 enterprise systems and high end data storage, including tape automation. REAL is the leading direct IBM Solution Provider in the United States and is a six time IBM Premier Business Partner. REAL provides total information technology solutions for customers in the manufacturing, distribution, financial, transportation, health and retail business environments and is an exclusive distributor of Intentia's MOVEX MOVEX Movement Exercises  enterprise resource planning See ERP.

(application, business) Enterprise Resource Planning - (ERP) Any software system designed to support and automate the business processes of medium and large businesses.
 application in key western states. REAL has just expanded into Europe with its recent acquisition of a majority interest in becom GmBh, a growing German IBM Business Partner. REAL's Web site is located at www.realapps.com.

When used in this disclosure, the words "estimate," "project," "intend," "expect," and similar expressions are used to identify forward-looking statements. Such statements are subject to risks and uncertainties that could cause actual results to differ materially. For a discussion of certain of such risks, see "Factors Affecting Future Results" contained within the Company's documents filed quarterly with the Securities and Exchange Commission. Readers are cautioned not to place undue reliance on these forward looking statements, which speak only as of the date hereof. There can be assurances that the transaction described above will be completed since it is subject to a number of contingencies. The Company undertakes no obligation to publicly release updates or revisions to these statements.

Note to Editors: Savoir Technology Group and the Savoir Technology Group logo are trademarks of Savoir Technology Group, Inc. Business Partner Solutions, BPS, and the Business Partner Solutions logo are trademarks of Business Partner Solutions, Inc. Western Micro Technology, Western Micro, and the Western Micro logo are registered trademarks of Western Micro Technology, Inc. IBM, IBM AS/400, IBM RS/6000, IBM S/390 and Netfinity are registered trademarks of International Business Machines Corporation and are used under license. All other company and/or product names are the property of their respective holders and should be treated as such.

CONTACT: Savoir Technology Group, Inc.

P. Scott Munro, 408/341-4767

Chairman and CEO

smunro@svtg.com

or

Savoir Technology Group, Inc.

Sandra M. Salah, 408/341-4712

Vice President, Corporate Relations

ssalah@svtg.com
COPYRIGHT 1998 Business Wire
No portion of this article can be reproduced without the express written permission from the copyright holder.
Copyright 1998, Gale Group. All rights reserved. Gale Group is a Thomson Corporation Company.

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Date:Sep 9, 1998
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