COMPUTONE SIGNS AGREEMENT TO ACQUIRE MULTI-USER SOLUTIONS,
LEADING LINUX/UNIX SERVICE AND SUPPORT COMPANY
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ATLANTA AREA FIRMS MERGE TO SERVE RAPIDLY-GROWING MARKET
ATLANTA, April 17, 2000 -- Computone Corporation (OTC BB: CMPT) said today that
it has signed a definitive agreement to acquire Multi-User Solutions, Ltd., of
Norcross, a third party provider of service and support specializing in
Linux(R), SCO(R) UNIX(R), Windows(R) NT, and other Open Systems. Subject to
certain conditions precedent, the acquisition is expected to close by the end of
April.
Perry Pickerign, president and CEO of Computone, a pioneer in IT connectivity
and remote access communications, said the merger of the companies will be "a
major step in broadening the size, reach and offerings" of Computone. Pickerign
said the agreement called for an aggregate consideration of $4 million in cash
and 800,000 shares of Computone stock. In addition, Pickerign said the
consideration is subject to an increase of up to $1.5 million dependent on the
satisfaction of specified performance objectives.
Both Atlanta area companies have emerged as leaders serving the needs of the
rapidly-growing marketplace of small and medium-size companies using SCO UNIX,
Linux, Windows NT and other Open Systems solutions. Multi-User Solutions will
operate as a subsidiary of Computone, with Darrin Sherrill, its co-founder,
serving as COO and reporting to Pickerign.
MEETING THE NEED FOR A FULL-SERVICE PROVIDER
"The growing marketplace had been hungry for a nationwide full-service provider
who could both supply and support users," said Computone's Pickerign. "Now, the
new combined Computone and Multi-User organization will more than meet those
requirements. We believe it will be catalytic model for the service and support
industry as well as Computone."
Founded in 1991 and privately-held, Multi-User Solutions (www.multiuser.com)
provides operating system support, systems integration, and logistics management
to customers of turnkey software vendors in North America. It supports and
provides services to major software vendors and customers in more than 10,000
locations, focusing on Linux, SCO UNIX, Microsoft(R) Windows NT and Novell(R).
The company has a long relationship with Santa Cruz Operations (SCO), which has
some 70 percent of the UNIX marketplace on Intel(R) platforms, and was SCO's
first Authorized Support Center (ASC) in North America. Multi-User completed
fiscal 1999 with more than $9 million in revenues.
In 1999, Caldera(R) Systems, a leading distributor of Linux, named Multi-User as
its first ASC, with the company also serving as its internal Help Desk on an
interim basis, as well as providing telemarketing sales for support contracts.
Multi-User has third-party agreements with IBM(R), NCR(R), Data General(R),
USNET(R) and other major organizations to provide same-day and next-day service
solutions, including overnight replacement and on-site service.
'ANOTHER IMPORTANT STEP IN THE RIGHT DIRECTION' FOR COMPUTONE
Pickerign called the pending acquisition of Multi-User Solutions "another
important step in the right direction for Computone, dramatically improving
efficiencies and profitability.
"Growing sales, increasing the profit picture, moving ahead and putting problems
of the past behind are all important in making and keeping Computone a viable
and exciting company in step with today's markets and times," Pickerign said.
SIGNIFICANT REVENUE STREAM AND PROFITABILITY
Pickerign called Multi-User revenue stream "significant," noting that it was
"many times greater than competitors such as Linuxcare(TM) -- plus having the
added distinction of profitability." He said Multi-User's support contracts with
SCO, Caldera and TurboLinux "show the company has earned its wings in a
highly-competitive marketplace. Multi-User has been able to achieve
profitability in its market niche, demonstrating the value of its proprietary
tools, strength of its management team, and a sound execution of its strong
business plan."
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'PERFECT FIT' WITH COMPUTONE
"Computone and Multi-User are perfect fit -- a great marriage,"said Multi-User's
Sherrill. "We will have the same culture, the same strong work and service
ethic, share a market focus and, more and more often, the same customers and
strategic partnerships. Being part of Computone will give Multi-User the
exposure and resources necessary to capitalize on current and emerging market
opportunities." Pickerign agreed, noting that "the acquisition will give
Computone a distinct competitive advantage as we gain the ability to provide
unparalleled service and support -- 24 hours a day, seven days a week -- and
enable our resellers to differentiate themselves by providing 7x24 next day,
on-site support to their customers as well.
"Together," he said, "the new Computone organization we will have a service
reach in Linux, Unix, NT and beyond that greatly exceeds our competition, and
while provides a platform for us to become a dominant player in this space."
A pioneer and leader in the worldwide IT industry since 1984, Computone
Corporation
(OTC BB: CMPT, www.computone.com) designs, manufactures and markets a
comprehensive line of remote access communications servers for Internet, LAN/WAN
and Windows NT/SCO UNIX/Linux and other Open Systems. Computone is also a
leading producer of high-speed multiport I/O boards, serving vertical markets
including healthcare, retail/point-of-sale, banking and financial,
telecommunications, Internet service providers (ISPs), transportation,
hospitality and education. Based in the Atlanta suburb of Alpharetta, Computone
sells through a worldwide network of authorized and certified distributors. For
the first nine months of fiscal 2000 ended December 31, 1999, Computone reported
an increase of 29 percent in net sales over the same period in fiscal 1999.
Multi-User Solutions, a subsidiary of Computone, provides service and software
for both hardware and software. Software support includes: Microsoft, SCO Open
Server/Desktop, SCO Xenix(TM) System V, SCO UNIXWARE(TM), Merge(TM), WABI(TM),
MPX/SMP(TM), Virtual Disk Manager and LAN Manager for SCO(TM), ArcServ for
SCO(TM), SCO Doctor(TM), Advanced File and Print Server(TM), FastStart
Products(TM), X Vision Products(TM), Caldera, Linux and TurboLinux. It supports
leading hardware vendors including: 3COM(R), Compaq(R), Computone, DEC(R)
(Compaq), Dell(R), Fujitsu(R), Gateway(R), Hewlett-Packard(R), IBM, Intel,
Lexmark(R), Magnavox(R), NEC(R), Okidata(R), Panasonic(R), Samsung(R),
Seagate(R), Sony(R), Texas Instruments(R) (HP), Toshiba(R), and U.S. Robotics(R)
(3COM).
This press release contains certain forward-looking statements within the
meaning of section 27A of the Securities Act of 1933 and Section 21E of the
Securities Exchange Act of 1934. With the exception of historical information
contained herein, the matters discussed in this press release involve risk and
uncertainties.
Actual results could differ materially from those expressed in any
forward-looking statement.
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