FOR IMMEDIATE RELEASE
Contact:
Raymond F. Kunzmann
Vice President, Finance
LeCroy Corporation
Tel: 845-425-2000
LECROY COMPLETES SALE OF VIGILANT NETWORKS FOR $12 MILLION TO GENTEK
CHESTNUT RIDGE, NY, AUGUST 29, 2000 -- LeCroy Corporation (Nasdaq: LCRY), a
leading supplier of digital oscilloscopes, today announced that it has closed on
the sale of the assets and business of Vigilant Networks for $12 million in cash
to Hampton, New Hampshire-based GenTek (NYSE:GK). As part of the agreement,
GenTek has a two-year warrant to purchase 200,000 shares of LeCroy common stock
at an exercise price of $10.05 per share. LeCroy expects to break even on the
sale of the assets and business of Vigilant to GenTek after it subtracts the
value of the warrants, fees and certain retained liabilities from the cash
proceeds. Vigilant Networks is based in Burlington, Massachusetts and provides
products and services that use advanced signal acquisition technology to test
and verify the performance of local area network channels.
Commenting on the transaction, LeCroy CEO Lutz Henckels stated, "The sale of
Vigilant allows us to focus our resources on our core business and significantly
enhances LeCroy's cash position. While we were excited by Vigilant's technology,
we concluded that LeCroy could not continue to invest the significant financial
resources necessary to capitalize on the technological strength of that
business." Vigilant Networks lost $13.7 million in fiscal 2000.
Continued Henckels, "The proceeds from this transaction have increased our cash
position to $15 million, and our total debt now stands at $4 million.
Furthermore, we expect to generate free cash flow (EBITDA) of approximately $14
million in the current fiscal year 2001. As a result, we believe we will have
the resources to capitalize on several exciting opportunities in our core
high-performance digital oscilloscope business."
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LECROY SELLS VIGILANT/2
"With the successful completion of the Vigilant transaction, management is fully
focused on LeCroy's core business, which has posted three consecutive quarters
of double-digit growth. We are excited about our new products to be unveiled
this fall and about the rapid succession of other offerings during the next two
years. We are confident that LeCroy is well positioned for a period of improved
growth and profitability in our core oscilloscope business," concluded Henckels.
This press release may contain forward-looking statements pertaining to future
anticipated projected plans, performance, the market in which the Company
operates, the impact of measures implemented by the Company, and timing
affecting the Company's revenues and developments, including but not limited to
the future sales of the Company's products and the growth of LeCroy's core
business, as well as other estimates relating to future operations. All such
forward-looking statements are only estimates of future results, and there can
be no assurance that actual results will not materially differ from
expectations. Further information on potential factors that could affect LeCroy
Corporation's business is described in the Company's reports on file with the
Securities and Exchange Commission.
LeCroy Corporation, headquartered in Chestnut Ridge, New York, develops,
manufactures and markets electronic signal acquisition and analysis products and
services. The Company's core business is the production of high-performance
digital and analog oscilloscopes, which are used by design engineers and
researchers in a broad range of industries, including electronics, computers and
communications.
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