(August 07, 2001)
MILPITAS, Calif. -DISC Inc. (Nasdaq: DCSR), a manufacturer of automated
solutions for enterprise storage, today announced that it has purchased
all of the outstanding shares of NSM Storage GmbH, a CD and DVD library
systems company located in Bingen, Germany, pursuant to which NSM has
become a wholly-owned subsidiary of DISC.
The transaction enables the implementation of a mutually-held strategy
of DISC and NSM to provide storage solutions for today's enterprise networks.
The combined companies will offer a wide-range of NearLine storage solutions
worldwide for a fraction of the total cost of RAID.
"The merger of NSM and DISC creates a much stronger entity in several
dimensions," said president and CEO Richard Ellis. "With the
combination of NSM's strong sales channels in Europe, coupled with DISC's
existing presence in North America, we have created a worldwide sales
organization for NearLine storage systems. Additionally, manufacturing
and support organizations in both the European Community and North America
will be better equipped to support our customers' needs. This acquisition
helps us to address growing storage requirements and accelerate the adoption
of our technology in the broad-based storage market."
The merger allows DISC and NSM to provide their combined customers with
a variety of NearLine storage products based on DVD-RAM and Magneto-Optical
technologies. NSM Storage GmbH will change its name to DISC GmbH and continue
to develop products focused on the mid-range storage market from existing
facilities in Bingen, Germany. DISC Inc. will continue to concentrate
its development efforts on products targeted at the enterprise-level and
systems markets. With manufacturing, sales and customer service in both
the United States and the European Community, the combined company can
readily serve geographic markets that account for 85% of all IT purchases
worldwide. The Company will also build upon existing relationships in
the international marketplace outside Europe and North America.
Pursuant to the terms of the Share Purchase Agreement entered into on
July 9, 2001, DISC has acquired all of the outstanding shares of NSM in
exchange for 965,000 shares of DISC common stock and a nominal cash payment
of $10,000. The acquisition will be accounted for as a purchase.
About NSM Storage:
NSM Storage GmbH, founded in 1994 as a subsidiary of the Bingen Company,
NSM AG, has played a leading role in the development, production and marketing
of audio jukeboxes for more than four decades. NSM Storage GmbH has benefited
from its parent company in the fields of robotics and control electronics.
Today, NSM Storage GmbH has more than 5,000 jukebox systems installed
worldwide, making it a leading company in this sector. In addition to
subsidiaries in the United States and the United Kingdom, the company
also has authorized distributors and service partners for sales of CD
and DVD jukebox solutions and local customer support in 40 countries.
About DISC:
Established in 1986, DISC, Inc., a manufacturer of automated library solutions,
provides companies with storage devices that add capacity to networks
for a fraction of the total cost of RAID. DISC's storage solutions range
in capacity from 40 GB to 9.5 TB. Headquartered in Milpitas, CA, DISC,
Inc. can be found on the World Wide Web at www.disc-storage.com. Sales
and development offices are located in Northern California, Chicago, Boston,
Dallas, Tampa, New York, Washington D.C., Bingen, Germany, London and
Asia. In addition to these offices, the company also has authorized resellers,
distributors and service partners for sales of NearLine storage solutions
and local customer support in 40 countries. In North and South America,
DISC can be reached by calling (800) 944-3472 or (408) 934-7000. For all
other locations, please contact DISC at the European office at +49 (0)
6721.964.430. DISC can also be reached by e-mail at sales@disc-storage.com.
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This press release includes forward-looking statements, including statements
about DISC's and NSM's product capabilities and leadership, the combined
strength of DISC and NSM, the range and capabilities of and potential
markets for the combined company's products and services, the development
and availability of future products, and the potential for rapid growth
and increasing market share. These statements are subject to risks and
uncertainties, which could cause future events to differ materially. These
risks and uncertainties include, among others, the ability of DISC to
successfully integrate NSM and its operations, the compatibility of the
combined company's products and services, the combined company's dependence
on successfully developing, introducing and commercializing new products
and/or developing enhancements to existing products, potential defects
in the products to be developed, the acceptance by the market of these
products and services, rapid technological change and competitive developments,
the ability of the combined company to successfully market its products
and services, risks related to the growth prospects of the markets that
the combined company serves, the loss of customers or distributors, increased
competition and pricing pressure, and DISC's ability to obtain additional
financing which it anticipates will be required to continue to finance
its operations in light of DISC's and NSM's history of losses.
Further information on these and other factors is provided in DISC's
Annual Report on Form 10-K for the year ended December 31, 2000. All forward-looking
statements are based on information available to DISC on the date hereof,
and DISC assumes no obligation to update such statements. |
