Nimbus CD International to Invest $22 Million in Expansion; DVD
Production Capacity to Double over Next Six Months
05/14/98
Business Wire
(Copyright (c) 1998, Business Wire)
Charlottesville, VA, May 14, 1998---Nimbus CD International, Inc. (NASDAQ: NMBS), one of the world's largest, independent manufacturers of optical discs, announced today a $22 million, international investment in plant upgrades and expansion.
The investment, which nearly doubles Nimbus' worldwide annual DVD capacity to 28 million discs, will accomodate expected demand for both open DVD and the soon-to-be-released Divx format. Nimbus is currently producing discs for all open DVD formats, including DVD -5, -10, -9 and Divx. In addition to the expansion of its disc replication capacity, the investment will also include new DVD packaging and mastering equipment, existing mastering lathe upgrades and the continued implementation of a new, worldwide MIS system to enhance production efficiencies and customer service. The Company has also committed capital to expand its Foetz, Luxembourg facility, which opened in November, to meet expected demand for CD products and further support its role as a key supplier in the Microsoft Authorized Stamper Program.
Lyndon J. Faulkner, chairman and chief executive officer of Nimbus CD International said, "This investment is another key component of our ongoing, worldwide growth strategy." Faulkner added, "Demand for DVD , in all its forms, is steadily increasing. These enhancements to our operations will give us the right combination of capacity and capabilities to take advantage of opportunities as the market for DVD products grow."
Nimbus, which distinguished itself as one of the world's first compact disc replicators to offer DVD production services, is one of the largest, independent manufacturers of DVDs, having already replicated over 3 million DVD discs.
Nimbus is one of the world's leading independent manufacturers of optical discs distributed throughout North America, the United Kingdom and continental Europe. The Company is at the forefront of optical disc manufacturing technologies and provides complete CD and DVD replication services. Headquartered in Charlottesville, Virginia, Nimbus operates additional facilities in Provo, Utah, Cwmbran, Wales and Foetz, Luxembourg. For more information, visit Nimbus on the Internet at www.nimbuscd.com.
Safe Harbor Statement Under the Private Securities Litigation
Reform Act of 1995:
This release contains forward looking statements that are subject
to risks and uncertainties, including, but not limited to, the
impact of competitive products and pricing, product demand and
market acceptance, new product development, reliance on key
strategic alliances, availability of raw materials, the
regulatory environment, fluctuations in operating results and
other risks detailed from time to time in the Company's filings
with the Securities and Exchange Commission.
CONTACT: NIMBUS CD INTERNATIONAL, INC. L. Steven Minkel Executive Vice President and Chief Financial Officer Nimbus CD International, Inc. 804/985-1100 or Investor Relations Contact: Donna N. Stein/Dan Durkin/Keil Decker Morgen-Walke Associates, Inc. 212/850-5600 Media Relations: Lee Foley/Elizabeth Pieroni Morgen-Walke Associates, Inc. 212/850-5613
08:26 EDT MAY 14, 1998
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