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Press Release
ITC Learning Corporation For ITC Learning:
13515 Dulles Technology Drive ITC Learning Corporation
Herndon, VA 20171-3413 Christopher E. Mack, President
http://www.itclearning.com 800-638-3757
OTC: ITCC.BB Fax 703-713-0065
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ITC Learning Announces Sale of European Subsidiary
Herndon, VA -- (January 3, 2001) -- ITC Learning Corporation ("ITC" or the
"Company")(OTC: ITCC.BB), a provider of process and manufacturing workplace
skills training, today announced the sale of its European subsidiary, Activ
Training Limited ("Activ"), in a management buyout led by Phillip G. Jones. Mr.
Jones has been the Managing Director of Activ for ITC since its inception in
1995. The transaction was valued at $1 million, including a cash payment and a
secured five year promissory note.
Christopher E. Mack, President stated, "With ITC's recommitment to its core
industrial base, redefining this relationship makes good economic and business
sense. Over the past five years, Activ has concentrated its sales and marketing
efforts on the distribution of PC Skills, Business Skills and Information
Technology training products. Clearly defining Activ's on-going role as a long-
term business partner instead of an ITC subsidiary allows the maximum
flexibility for Activ's future operations. ITC expects to benefit from this
flexibility through greater royalty payments than we might have otherwise
received through the previous relationship."
Activ will remain ITC's exclusive international master distributor for Europe,
Middle East and Africa and will retain sole responsibility for maintaining the
network of ITC resellers in these territories. For the nine months ended
September 30, 2000, Activ accounted for approximately 30% of ITC Learning's
consolidated revenues and approximately 4% of total assets. The Company expects
that on-going revenues from Activ will be reduced, primarily from no longer
including the gross sales by Activ in the Company's consolidated financial
statements.
Phillip G. Jones, Managing Director of Activ stated, "this move will ensure that
Activ Training will go from strength to strength, as we transition from being a
traditional multimedia training business to a service and solution oriented E-
Learning business. ITC's current and future products will provide a key element
of our high quality and growing content portfolio and, of course, we will
continue to manage and support ITC resellers across Europe, the Middle East and
Africa. This is great news for our clients, our resellers and the ongoing
relationship between Activ and ITC."
About ITC
ITC Learning Corporation develops and markets workplace training solutions for
industrial business, education, and government segments with headquarters in the
Greater Washington, DC area and offices in
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Australia and Canada. With over 5,000 organizations worldwide using ITC's
products to improve employee productivity and skills, ITC is recognized for
excellence in industrial course content, training delivery technologies, and
customer support. ITC provides customers with total training solutions, complete
with services, administrative software and approximately 600 Video, CD-ROM,
intranet, and Internet delivered multimedia courses on topics such as Industrial
Technical Skills, Regulatory Compliance, Basic Literacy Skills, Information
Technology, Business Productivity, and Personal Computer Skills. The Company's
stock is traded over the counter under the symbol ITCC.
ITC Learning Corporation is located in Herndon, VA and can be reached at (800)
638-3757 or on the web at www.itclearning.com.
This press release contains forward-looking statements. The words "believe,"
"expect," "intend," "anticipate," and "project," and similar expressions
identify forward-looking statements, which speak only as of the date the
statement was made. The Company undertakes no obligation to publicly update or
revise any forward-looking statements, whether as a result of new information,
future events, or otherwise. Forward-looking statements are inherently subject
to risks or uncertainties, some of which cannot be predicted or quantified.
Future events and actual results could differ materially from those set forth
in, contemplated by, or underlying the forward-looking statements. The risks
and uncertainties to which forward-looking statements are subject include, but
are not limited to, the effect of acceptance of the Company's products by the
marketplace, competition, and other risks detailed from time to time in the
Company's filings with the Securities and Exchange Commission.
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