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[CIDCO LOGO]
PROPOSED SALE OF CIDCO'S TELEPHONE EQUIPMENT
BUSINESS PASSES HART-SCOTT-RODINO REVIEW
Special stockholders meeting set for December 8, 2000 to approve transaction
MORGAN HILL, Calif., December 1, 2000--CIDCO Inc. (NASDAQ:CDCO), announced today
that the period for Hart-Scott-Rodino review of the proposed sale of the
company's telephone equipment business has expired with no comment by the
Federal Trade Commission. CIDCO has scheduled a special meeting of stockholders
at 10 a.m., December 8, 2000 to approve the transaction. Holders of record of
CIDCO common stock as of November 1, 2000 are eligible to vote on the
transaction, which has been approved by the board of directors.
CIDCO announced the definitive agreement on September 14, 2000, under which the
company will sell its entire line of telephones and telephony products to a
company led by technology investor and executive David Lee. The transaction is
valued at $15 to $20 million in cash and will enable CIDCO to concentrate
exclusively on its rapidly expanding Internet appliance business. The effect of
the sale will be to monetize the fixed assets and inventory of the telephone
equipment business and free up substantial working capital that will be deployed
to the Internet appliance business, said company officials. The transaction is
scheduled to close in December following approval by stockholders.
The special meeting of stockholders will take place at CIDCO's corporate
headquarters in Morgan Hill, 220 Cochrane Circle.
CIDCO Incorporated (NASDAQ:CDCO), founded in 1988, is a worldwide leader in
personal Internet communications products and services that empower consumers to
communicate simply and easily over the Internet. CIDCO introduced its first
Internet appliance in 1998 for a world moving into the developing Internet
appliance era and is extending this vision to devices that will make e-mail and
other Internet based information readily available to consumers that don't have
access to traditional computers or who prefer the convenience of e-mail when and
where they want. As the innovator of caller ID and having originated the e-mail
Internet appliance category with the launch of the MailStation, CIDCO takes a
unique approach with its offerings by providing integrated products and services
in a seamless manner. CIDCO allows for a better user experience through this
approach, and as a result its industry leading MailStation is gaining stature as
the device of choice amongst those seeking simple, convenient, and affordable
electronic communication as illustrated by the rapidly growing user base. The
company is headquartered in Morgan Hill, California at the south end of Silicon
Valley. For additional information, visit www.CIDCO.com or call (408) 779-1162.
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MailStation and CIDCO are trademarks of CIDCO Incorporated. All other trademarks
are the property of their respective owners.
Safe Harbor Statement under the Private Securities Litigation Reform Act of 1995
This news release contains forward-looking statements or predictions. These
statements represent our judgment as of this date and are subject to risks and
uncertainties that could cause actual results or events to differ materially
from those expressed in such forward-looking statements. Potential risks and
uncertainties include, without limitation, those associated with economic
conditions both domestic and international in the Internet and Internet
appliance industry, failure to successfully implement a national retail
distribution channel and a brand marketing campaign, failure to obtain the
estimated subscriber growth discussed above, competitive factors, lower than
expected consumer product acceptance, technological and business difficulties,
government regulations and delays or other problems with product development.
These and other factors are discussed in more depth in CIDCO, Inc. filings with
the SEC, copies of which may be accessed through the SEC's World Wide Web site
at http://www.sec.gov.
WHERE YOU CAN FIND ADDITIONAL INFORMATION
Investors and security holders of CIDCO are advised to read the proxy
statement regarding the business combination transaction referenced in the
foregoing information, which was filed with the Securities and Exchange
Commission (SEC) on November 9, 2000, because it contains important
information. Investors and security holders may contain a free copy of the
proxy statement and other documents filed by the company at the SEC's web site
at http://www.sec.gov. The proxy statement and such other documents may also be
obtained from CIDCO by directing such requests to the address listed above.
CIDCO and its officers and directors may be deemed to be participants in the
solicitation of proxies from CIDCO's stockholders with respect to the
transactions contemplated by the definitive agreement. Information regarding
such officers and directors is included in CIDCO's Annual Report on Form 10-K
for the fiscal year ended December 31, 1999 and in its proxy statement for its
2000 annual meeting, filed with the Securities and Exchange Commission. These
documents are available free of charge at the Securities and Exchange
Commission's Web site at http://www.sec.gov and from the CIDCO contact listed
above.
COMPANY CONTACT: MEDIA CONTACT:
RICHARD KENT DON KING
CHIEF FINANCIAL OFFICER BATES CHURCHILL INVESTOR RELATIONS
408-779-1162 713-267-7280
[email protected]
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