Symbol Technologies acquires LIS Holdings Ltd., largest U.K. supplier of logistics technology systems.

HOLTSVILLE, N.Y.--(BUSINESS WIRE)--Sept. 4, 1996--Symbol Technologies, Inc. (NYSE:SBL), the world leader in bar code-driven data transaction systems, today announced it has acquired LIS Holdings Ltd., headquartered in the U.K. LIS is one of Europe's largest providers of technology-based logistics management systems.

The acquisition of LIS -- with more than a decade of experience providing technology solutions based on its own open software products in concert with bar code, wireless networking and ruggedized terminals -- greatly enhances Symbol's increasing presence in the rapidly expanding logistics market. Symbol gains LIS' robust software products and system integration expertise.

Terms of the acquisition include an initial payment of $20.9 million and subsequent payments ranging from zero to a total of $7.8 million, contingent upon LIS achieving 15% to 30% annual revenue growth over the next three years. Symbol will take an acquisition-related charge in the current quarter of approximately $13 million pre-tax, or $.30 per share after taxes, to cover integration costs and acquired in-process R&D.

LIS will continue to function, with the name Symbol LIS, as a separate business unit within Symbol. It will retain its current management structure, will continue to be headquartered in the U.K. and will continue to grow its operations there, in the U.S. (based in Charlotte, N.C.) and in South Africa.

"Transportation, distribution and logistics generally comprise the fastest growing market worldwide for Symbol Technologies, and through our acquisition of LIS, a demonstrated leader in providing turnkey solutions in this area, we enhance Symbol's capacity to address it," said Tomo Razmilovic, president and chief operating officer of Symbol Technologies. "We plan to build on the strength of Symbol's global distribution capabilities by making Symbol LIS products and expertise available to our customers through both direct sales and indirect channels."

Dr. Jerome Swartz, chairman and chief executive officer of Symbol Technologies, sees Symbol's wireless local area network (WLAN) as a growth area for Symbol LIS.

"LIS serves the entire supply chain with application consulting, software and system integration services, a perfect fit with the Symbol systems that increase efficiency and accuracy for our customers," Swartz said. "As the U.K. leader in developing data capture solutions based on wireless local area networking, LIS is beginning to roll out the Symbol Spectrum24(TM) WLAN, which conforms to global standards for interoperability, as well as other Symbol products new in 1996."

LIS, the largest of Symbol's value-added resellers in the United Kingdom, had 1995 revenue of $16 million (primarily in the U.K.).

"LIS has benefited from working closely with Symbol for a number of years, and we look to this acquisition to allow us to significantly expand our business," said Ian Shepherd, president and CEO of LIS. "Access to Symbol's worldwide sales and distribution network and the addition of Spectrum24(TM) products to broaden our offering will help LIS to become the leading supplier and integrator in the logistics arena."

LIS develops software for real-time material control as well as route accounting and field reporting. The company's products include Dispatcher CS(TM), a client server warehouse management system for large-scale distribution centers and warehouses; Delivery Point(TM), a proof of delivery system; StoreTrak(TM), a stock management system for small- to medium- sized warehouse operations; and LOMAS(TM), a transport logistics management system. All are ISO 9001 documented.

Applications for LIS products include manufacturing material flow control, warehouse management, inventory storage and tracking, and delivery of materials through the supply pipeline to the retail store. LIS serves customers in industries including electronics manufacturing, public utilities, port and cargo management, pharmaceuticals and chemicals, paper and publishing, food and general retail, and automotive.

Symbol Technologies is the world leader in bar-code-driven data transaction systems with more than 3.5 million scanners and hand-held computers installed. The company designs, manufactures and markets bar code reading equipment, application-specific hand-held computers and radio frequency data communications products that are used as strategic building blocks in solutions in retail, package and parcel delivery, manufacturing, warehousing and distribution, health care and other industries. Customer information is available from Symbol Technologies at 1-800-SCAN-234 and at http://www.symbol.com. -0- Photos available upon request.

CONTACT: Symbol Technologies Inc., Bohemia

Kathryn Morris, Doug Picker, 516/738-3703 (press)

Michael G. Archambault, 516/738-4632 (financial)