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PRIMESOURCE FORMS A JOINT VENTURE WITH XEIKON TO CREATE A SYSTEMS INTEGRATION COMPANY DEDICATED TO SELLING AND SUPPORTING DIGITAL PRINTING SYSTEMS
PENNSAUKEN, NJ -- May 11, 2000 -- PrimeSource (NASDAQ:PSRC - news) today announced that it has entered into a non-binding Letter of Intent with Xeikon NV, the world's leading manufacturer of digital printing presses, to form a new company dedicated to expanding the digital printing systems market in the U.S.
This joint venture stems from the success of PrimeSource's Digital Print Group and will be dedicated to sales, service and support of Xeikon's complete line of digital color and black & white presses in the U.S. and Canada.
Jim Mullan, President and CEO of PrimeSource, said that the joint venture was created to:
- Fully integrate sales and on-going service for seamless customer support;
- Expand the range of services offered to digital printing customers in order to become the complete integrator of Xeikon digital printing systems;
- Enable organizational development to keep pace with anticipated rapid growth of digital printing.
The new company will be comprised of PrimeSource's Digital Print Group and select Xeikon service staff. The U.S. sales and service organization of Chromapress will also be part of the joint venture once the transaction between Agfa and Xeikon is finalized. Xeikon will maintain a minority stake in the new company.
PrimeSource CEO Jim Mullan will be Chairman and PrimeSource Executive Vice President John Goddard will be President and CEO of the new company, which will be headquartered in Seattle, WA.
Alfons Buts, Chief Executive Officer of Xeikon said, "The formation of this joint venture demonstrates PrimeSource's commitment and enthusiasm for the outlook for Xeikon digital printing systems in the U.S. commercial print market. Our financial participation solidifies our commitment towards Xeikon and Chromapress users."
In addition to sales, installation and integration, and ongoing service of Xeikon color and black & white digital printing systems for the U.S. commercial printing and packaging industry, the new company will also distribute Xeikon consumables and parts to Xeikon system and Chromapress users in the United States and Canada.
The product range will be expanded to include the distribution and service of the powerful Agfa IntelliStream digital front end, included in the transaction between Agfa and Xeikon.
Xeikon America, Inc. will continue to provide technical and logistical support and training for the new company and other distribution channels throughout North America. In addition, Xeikon America will provide product management and marketing, and manage the world-class demonstration and training centers in Wood Dale, IL, and Billerica, MA.
Mr. Mullan added, "Our experience in digital printing over the past two and a half years has convinced us that this technology will be an important part of the future of commercial printing. We have built the business with Xeikon products and are pleased to further expand our relationship with the world's leading manufacturer of digital presses. The new company's focus, commitment and dedication to Xeikon's digital systems will enhance its leadership position in this rapidly developing market."
Xeikon NV develops, produces and markets commercial digital color presses and related consumables specifically designed to meet the quality, speed, reliability, cost, variable content and on-demand requirements of the global digital color printing market.
Xeikon supplies both original equipment manufacturers, as well as a global network of over 30 value-added distributors operating in more than 40 countries.
Through its 80 percent equity interest in Nipson International SA (France), Xeikon is also a major manufacturer of digital black & white presses, which use a proprietary "magnetography" technology best suited for use in heavy-duty applications. Xeikon NV can be found on the World Wide Web at http://www.xeikon.com.
PrimeSource is the nation's leading distributor of printing equipment, supplies, and service to printing and publishing firms. The company has 32 distribution centers in the U.S., through which it sells some 50,000 products to more than 30,000 customers.
PrimeSource offers products for each state of the printing process, from pre-press (film, chemicals, film processors, workstations, scanning equipment) to pressroom (plates, platesetters, digital printing systems, bindery equipment). The company also provides ongoing training, support and consultative services to its customers.
PrimeSource can be found on the World Wide Web at http:www.primesource.com.
This news release contains forward-looking statements, and actual results
may vary from those expressed or implied herein. Factors that could affect
these results include those mentioned in PrimeSource's 1999 annual report
and its annual and quarterly filings with the Securities and Exchange
Commission.