finally able to get in SI. (COMTEX) B: Alanco Announces Acquisition of Storage Area Network - SA
B: Alanco Announces Acquisition of Storage Area Network - SAN - Company, Arraid
Inc.; Initial Step in Implementing New Business Strategy
SCOTTSDALE, Ariz., Oct 27, 1999 (BUSINESS WIRE) -- Alanco
Environmental Resources Corp. (NASDAQ: ALAN) Wednesday announced the
acquisition of Arraid Inc. (Arraid), located in Phoenix.
Established in 1993, Arraid is a leader in data storage solutions for
mid-range and mainframe computer systems. Arraid has achieved
world-wide recognition as a technology innovator providing subsystems
and software upgrade solutions for legacy large-scale computer systems,
with an existing installed base of several thousand systems at numerous
Fortune 500 companies, as well as U.S. and foreign government agencies
and military organizations.
The company has been selected as one of Arizona's fastest growing high
tech companies for the past three years. Partnered with advanced
technology innovators, Gadzoox, Crossroads, Exabyte, Legato and
Hitachi, Arraid is focusing on the fastest growing segment of the
computer industry, storage area networks (SAN). SANs are multi-vendor,
ultra high speed, fibre-based architectures that revolutionize the way
applications and users share data.
SAN's growth is Internet-correlated, as the need for high-speed
"real-time" electronic data communications in E-commerce applications
is literally exploding. International Data Corp. comments that "the
growth rate of Internet-enabled data storage is likely to be as great
as that of the Internet itself."
The SAN products and network services market is projected for
exponential annual growth by the Gartner Group, increasing from 1999
worldwide sales of approximately $800 million to over $12 billion in
2002.
Alanco acquired Arraid in an all-stock transaction consisting of an
initial payment of 800,000 Alanco common shares, with an additional
share payment upon Arraid achieving its business plan objectives for
the year period beginning Nov. 1, 1999.
Arraid President, Frank B. Meijers, is highly enthusiastic relative to
the new Alanco association. "This will allow us to accelerate our SAN
market development with a formal roll-out program in November, 1999. We
are projecting rapid sales growth to approximately $12 million in sales
in the first full year of our business plan and increasing to over $40
million by the third year."
Arraid co-founder, John C. Dahl, added, "In addition to rapid growth in
general corporate data storage, Internet use has created a tremendous
new demand for data storage and access, and we are addressing both
areas in our business development strategy. We believe that our
extensive technical expertise and strong customer base will provide the
means, along with Alanco support, to realize our goals."
Alanco Chairman and Chief Executive Officer, Robert R. Kauffman,
stated, "The Arraid acquisition is the initial step of our new
corporate strategy to redeploy our substantial assets towards high
growth investment opportunities, specifically targeting the information
technology industry.
"Arraid is well-positioned to effectively compete in the exciting SAN
market and, we believe, will develop as a very high growth, profitable
new business for Alanco."
Kauffman also noted that, reflecting the company's new strategy, the
corporate name will be changed, subject to shareholder approval at the
Nov. 5, 1999 Annual Shareholders' Meeting, to "Alanco Technologies,
Inc."
Alanco Environmental Resources Corp. is an Arizona corporation
headquartered in Scottsdale. Alanco is traded on the NASDAQ stock
market under the symbol ALAN.
This press release contains statements that may be considered
forward-looking statements within the meaning of the Private Securities
Litigation Reform Act of 1995. Such forward-looking statements are
inherently uncertain, and the actual results may differ from
management's expectations.
Copyright (C) 1999 Business Wire. All rights reserved.
Distributed via COMTEX.
-0-
CONTACT: Alanco Shareholder Relations, 480/607-1010
or
Arraid Inc.
www.arraid.com
www.arraidsns.com
WEB PAGE: businesswire.com
GEOGRAPHY: ARIZONA
INDUSTRY CODE: COMPUTERS/ELECTRONICS
INTERNET
ENVIRONMENT
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