XSCRIBE CORP. ANNOUNCES ACQUISITION OF PHOTOMATRIX CORP.
SAN DIEGO, May 3 /PRNewswire/ -- Xscribe Corp. (NASDAQ: XSCR) announced that it has acquired all of the outstanding shares of Photomatrix Corp. in exchange for 3,000,000 shares of unregistered Xscribe common stock, effective April 30, 1993. In a special meeting of Xscribe's shareholders, 98 percent of those shareholders who voted supported the acquisition. Photomatrix is an affiliate of the Wyly family of Dallas. As part of the transaction, an investment affiliate of the Wyly family has purchased an additional 2,000,000 shares of unregistered Xscribe common stock for $1 million cash paid to Xscribe. That cash will be used to pay transaction costs and to repay certain Photomatrix liabilities. Photomatrix designs, manufactures, sells and services three micro-imaging product lines. Currently, the greatest revenue contributor is a high-speed Microfiche Duplicator sold primarily to Kodak under a private-label, OEM arrangement. The second product line consists of Aperture Card (microfilm) Scanning products and systems designed for engineering applications. These products are currently sold primarily to leading system integrators like PRC Inc., for the U.S. Department of Defense EDMICS program, to Intergraph, Xerox and others. The third product line is a new, high-speed, dual- sided and rugged Document Scanning System, which is now ready for shipment to customers. Total revenues for Photomatrix for the year ended Dec. 31, 1992, were about $9.2 million, with no contribution from the new Document Scanning System. Suren G. Dutia, Xscribe's president and chief executive officer, stated, "We are excited to double our revenues in exchange for about one-third of our equity. In evaluating the acquisition, we strongly considered the existing Photomatrix revenue base along with the growth potential of the Photomatrix technology. The aperture card scanner has good potential as more and more engineering organizations transition from microfilm to electronic imaging. The document scanner provides us with another growth opportunity, through a variety of distribution channels. Both scanners compete in the $1.3 billion electronic imaging industry, which is projected by the Association for Information and Imaging Management ("AIIM") to grow at a rate of greater than 25 percent over the next three to five years. Dutia further stated, "We are pleased that we will be welcoming two representatives from the Wyly family to our board of directors, which will be expanded to seven members after the merger. In addition to their affiliation with Photomatrix, members of the Wyly family are principal stockholders of Sterling Software Inc. and Michaels Stores Inc. Their input to our board decisions will be invaluable." 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's wholly owned subsidiary, U.S. Micro-Imaging Inc., provides micrographics services to a wide range of customers, primarily financial institutions. Xscribe's newly-formed subsidiary, U.S. Transcan Technologies Inc., develops, manufactures and sells document handling and electronic scanning products for micrographics and electronic imaging applications. -0- 5/3/93 /CONTACT: Bruce C. Myers, VP-operations and CFO of Xscribe, 619-457-5091, ext 319/ (XSCR)
CO: Xscribe Corp. ST: California IN: CPR SU: TNM
MS-JB -- SD005 -- 3809 05/03/93 12:32 EDT
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|Date:||May 3, 1993|
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