Bell & Howell Company 5215 Old Orchard Road voice 847.470.7100
Skokie, Illinois 60077.1076 fax 847.470.9825
web bellhowell.com
e-mail [email protected]
BELL & HOWELL
Contacts:
Nils A. Johansson Dwight A. Mater
Executive Vice President Vice President, Investor Relations
Phone 847-470-7617 and Business Development
847-470-7111
BELL & HOWELL AGREES TO SELL IMAGING UNIT TO KODAK
SKOKIE, Ill., Oct. 30 /PRNewswire/ -- Bell & Howell Company (NYSE: BHW - news)
today announced that it has agreed to sell its Imaging unit to Kodak for
approximately $150 million in cash. The sale is subject to regulatory approvals
and is expected to close prior to year-end. The Company plans to use the
proceeds of the sale to pay down debt.
James Roemer, Bell & Howell Chairman, President and Chief Executive Officer,
commented, "We are very pleased to have entered into a definitive agreement to
sell our Imaging business to Kodak. The combination of these two organizations
should benefit our customers by leveraging the resources, experience and best
practices of both organizations. Furthermore, Kodak is getting a strong business
with loyal customers while joining with an outstanding group of employees who
have made Bell & Howell Imaging one of the most respected companies in the
industry."
"This agreement underscores our intention to take advantage of growth
opportunities in the worldwide document imaging marketplace," said Candy Obourn,
president of the Document Imaging division. "It will enable us to better
leverage technologies and resources to provide customers around the world with
an easier way to do business, access to an expanded portfolio of products and an
unmatched field service capability." Roemer added, "With the pending sale of
Imaging, we are well on our way to launching the new ProQuest Company,
consisting of our Information & Learning and Publishing Services businesses. The
ProQuest Company will be a global leader in research, learning and publishing
services. It enables individuals, institutions and dealers to access, manage and
utilize high-value, specialized information quicker, more efficiently and with
better results."
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Bell & Howell Sells Imaging Unit/Page 2
The Company recently reported third quarter sales growth of 12%, from continuing
operations on a comparable basis and EBITDA (earnings before interest, taxes,
depreciation and amortization) growth of 18%. On a year to date comparable
basis, sales grew 9% and EBITDA grew 20%. From that basis, Roemer also affirmed
the Company's outlook for the remainder of 2000. "We are expecting sales growth
of about 10%, with EBITDA growth in the mid-teens, including our significant
investments in our Internet initiatives. We have a solid platform for growth and
look forward to finishing this year strongly and transitioning our Imaging
business to Kodak."
Risk Factors
------------
Except for the historical information and discussions contained herein,
statements contained in this release may constitute "forward-looking statements"
within the meaning of the Private Securities Litigation Reform Act of 1995.
These statements involve a number of risks, uncertainties and other factors,
including without limitation, the cost and availability of intellectual property
from third parties, impact of the change in revenue recognition from the
Securities and Exchange Commission's SAB #101 pertaining to subscription
revenues, decreases in the ability to attract and retain employees for the
existing Bell & Howell as well as the new company resulting from the restructure
of the existing Bell & Howell, obtain capital, including interest rate risks,
unexpected merger-related effects, timing and market conditions relating to the
sale of the Mail & Messaging Technologies and Imaging businesses as well as
business execution risk and risk of new competitors, and any necessary
regulatory approvals, decreases in funding for Internet access as well as
overall acceptance and usage of the Internet in the education and library
markets, the willingness of parents to purchase educational products for home
use, the availability of free or advertising supported research information on
the Internet, decreases or shifts in mail volumes, rate of acceptance of
electronic-based mailings, including effects of and rate of acceptance of
internet-based solutions, including the automotive business, changes in the
business services market, changes in the automotive industry, and general
economic conditions, all of which could cause actual results to differ
materially, and such other risks as discussed in the company's filings with the
Securities and Exchange Commission.
About Bell & Howell
-------------------
Headquartered in Skokie, Illinois, Bell & Howell Company (NYSE: BHW - news) is a
leading information solutions and services provider to industries worldwide. In
each of its businesses, the company transforms information through software and
services, helping its customers operate more effectively and efficiently.
Additional information on Bell & Howell can be found at www.bellhowell.com.
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About Eastman Kodak Company
---------------------------
Eastman Kodak Company (NYSE: EK - news) is the leader in both traditional
photography and digital imaging, with sales of more than $14 billion for 1999.
The businesses of Kodak serve a wide range of consumer, professional,
entertainment, commercial and health imaging needs. Through its Document Imaging
division, Kodak is the number one worldwide supplier of high-speed production
document scanners, as well as media and micrographics products and services. It
offers a variety of capture components and media for imaging and document
management applications that require digital, integrated, or micrographics
imaging solutions. More information is available by calling the Kodak Document
Imaging division at 1-800-243-8811 (U.S. and Canada), by contacting an
authorized representative of Kodak products, or at the Kodak DI World Wide Web
site at http://www.kodak.com/go/docimaging.
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