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EVEREX BEGINS DOWNSIZING COMPANY BY SELLING NON-CORE BUSINESSES; SALE OF MASS STORAGE & ESIX SOFTWARE DIVISIONS PENDING FINAL COURT APPROVAL

 FREMONT, Calif., Feb. 1 /PRNewswire/ -- Everex Systems Inc. (NASDAQ-NMS: EVRX) today announced it has received signed letters of intent for the sale of its Mass Storage Division (MSD) and ESIX Software Division. The company has stated previously its intention to sell off non-core businesses in an effort to downsize the company and restructure the company's debt. The sale of both divisions is subject to review and approval by the Creditors Committee and The C.I.T. Group, Everex's secured lender, and will require final approval by the court.
 Exabyte Corp. of Boulder, Colo., has signed a letter of intent to acquire Everex's Mass Storage Division for $5.5 million in cash. MSD designs, manufactures and distributes DC 2000-based, quarter-inch cartridge, Small Computer Systems Interface (SCSI) tape drives for personal computer and network environments. Under the terms of the agreement, Exabyte will acquire the Everex MSD tape research and development unit in Ann Arbor, Mich., and Everex's tape manufacturing assets in Fremont.
 Everex also announced that a letter of intent has been signed by James River Group of Minnesota to acquire its ESIX software division for approximately $210,000. ESIX develops and markets Everex's System V UNIX operating system. This agreement will not impede previous orders or government contract commitments held by the ESIX Division.
 "This is the first step in our effort to sell off non-core businesses and allow the company to focus more on the primary product lines," said Jack Kenney, Everex's chief executive officer. "The infusion of cash will help support on-going operations," Kenney concluded.
 Everex also announced that it has shipped 11 high-performance, 486-based EISA file servers on an expedited "rated DX" order for the Department of Defense. These shipments went to Electronic Data Systems (EDS) in Texas for configuration and immediate air shipment to Kuwait in support of U.S. Army troops. Everex's file server is the primary product on the U.S. Army's SMC (Small Multi-User Computer) Contract held by EDS. Over 7,000 Everex file servers are in the field with U.S. military forces.
 Everex Systems Inc., a computer industry leader headquartered in Fremont, designs, manufactures and distributes a complete family of network servers, personal computers and peripherals. Everex products are distributed through a worldwide dealer, VAR and distributor network.
 -0- 2/1/93
 /CONTACT: Mike Whalen, 510-683-2189, or Letty Dupuy, 510-683-2066, both of Everex/ (EVRX)


CO: Everex Systems Inc.; Exabyte Corp.; James River Group ST: California, Colorado, Michigan, Minnesota IN: CPR SU:

GT-SG -- SJ004 -- 6655 02/01/93 16:36 EST
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Publication:PR Newswire
Date:Feb 1, 1993
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