Zitel Concludes Sale of Storage Business
FREMONT, Calif., July 28 /PRNewswire/ -- Zitel Corporation (Nasdaq: ZITL - news) announced today the sale of its Intelligent Storage Systems unit (ISS) to Silicon Systems & Technologies, Inc. (SST), a subsidiary of Gores Technology Group of Los Angeles, California. Former Zitel employees, including the ISS management team, have joined SST. SST has assumed responsibility for product warranty and technical support and the continuing development, marketing and service of the ISS products, including its flagship CASD II systems. A Zitel spokesman stated that the purchase price included cash and a note totalling $1,000,000 and royalties of up to $4,000,000 payable over four years based on sales of ISS products.
Jack H. King, President and CEO of Zitel, stated, ''We are pleased to have concluded this important phase of our transition plan. With the management team in place, supported by Gores Technology Group and the previously announced agreement with Hitachi Computer Products (America), Inc. known for its world class manufacturing capability, SST is well-positioned for success. Our loyal customer base should also be well-served by SST. This divestiture will allow Zitel to intensify its focus on its Datametrics software and Year 2000 businesses.'' |
