XSCRIBE ANNOUNCES PARTNERSHIP WITH INTERNATIONAL COMPUTERS LTD.
SAN DIEGO, Sept. 22 /PRNewswire/ -- Xscribe Corp. (NASDAQ: XSCR) announced today an important strategic partnership with International Computers Ltd. Inc. (ICL). ICL is an international leader in groupware and open systems products and technologies, including a complete range of client-server software such as powerful office information systems, systems management, and enterprise-wide communications systems which are the subject of the arrangement with Xscribe. Headquartered in London and 80 percent owned by Fujitsu Ltd., ICL's annual revenues are $4.3 billion. Under the provisions of the proposed agreement, Xscribe intends to acquire selected operations of ICL's North American Sales Division (ICL- NAS) along with certain related assets. Xscribe will also acquire licenses to resell and support selected ICL software and hardware products previously distributed by ICL-NAS. Xscribe will acquire the exclusive rights to resell and support ICL's enterprise-wide communication systems, OFFICEPOWER and TeamOFFICE groupware, to all current ICL-NAS customers and to the entire U.S. legal marketplace. This range of software products is specifically planned to be platform independent and to support all major operating environments, such as UNIX, Windows NT, NetWare and OS/2. These products increase productivity for tens of thousands of U.S. users and hundreds of thousands of international users by rapidly organizing and communicating management information throughout the customer's organizations. Recent sales levels for these products and related support services at ICL-NAS total $8 million annually. For this operation, certain assets and ICL support, use of ICL facilities, and the distribution rights, Xscribe will issue about 2,000,000 restricted shares of its common stock. This transaction is scheduled to close in October 1993. As a result of this strategic partnership, ICL will own about 12 percent of Xscribe. Also as a result, Xscribe will nominate Jukka Norokorpi, ICL's vice president - Client Server Systems Division, to Xscribe's board of directors. Norokorpi is responsible for the development and implementation of ICL's worldwide client-server software strategy and products. He will bring significant software development and distribution talent to Xscribe's board. Suren G. Dutia, Xscribe's president and chief executive officer, stated, "We are honored that ICL chose Xscribe to be its exclusive distributor of OFFICEPOWER and TeamWARE to its many important U.S. accounts, including the U.S. legal marketplace. We are excited about the synergy that this new business will create with our current court reporting, litigation support, and imaging operations. For example, these combined products create a unique litigation management solution for attorney work groups. We are pleased to add many notable commercial entities, major government agencies, and 100 of the most prestigious U.S. law firms to our customer base; our highest priority will be to continue to provide high-quality support to these important customers." Dutia further stated, "ICL has stated and demonstrated their intent to collaborate with Xscribe in a mutually beneficial, long-term relationship. This commitment is evidenced by ICL's 12 percent holding in Xscribe restricted shares and by ICL's representation on Xscribe's board of directors. We are pleased to be part of the ICL family." ICL's Norokorpi added, "We are impressed by the skills, sharp focus, and vision of the Xscribe team. Be combining ICL, Xscribe, and Photomatrix technology, Xscribe has demonstrated their commitment to serve an extremely demanding market with a high standard of execution. We plan to grow fast in the U.S. markets with TeamWARE client-server software. We believe that Xscribe will be one very important channel for us in achieving this ambitious target." Xscribe Corp. designs and markets high-technology software and hardware products for legal professionals, including computer-aided transcription systems for court reporters and real-time captioning systems for the hearing impaired. Xscribe subsidiaries provide micrographics services and micro-imaging products to a wide range of customers. Xscribe's wholly owned subsidiary, Photomatrix Corp., is a leading supplier of high-performance microfiche duplicators and microfilm and document-scanning systems. -0- 9/22/93 /CONTACT: Bruce C. Myers, CFO, 619-457-5091, ext. 340/ (XSCR)
CO: Xscribe Corp.; International Computers Ltd. Inc. ST: California IN: CPR SU:
LM-LS -- SD001 -- 4539 09/22/93 09:02 EDT
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|Date:||Sep 22, 1993|
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