BEAVERTON, Ore. and ROCHESTER, N.Y.--(BUSINESS WIRE)--Oct. 29,
1997--In a major step toward its goal of becoming a leading provider
of complete Computer Assisted Data Entry solutions, Adaptive
Solutions Inc.(NASDAQ:ADSO) today announced that it has agreed to
purchase Eastman Kodak Company's optical character recognition (OCR)
business.
The purchase includes ownership of Kodak's Imagelink-branded OCR
subsystems, technology and related patents, as well as the OCR
service business. In addition, Adaptive is acquiring next-generation
intelligent character recognition (ICR) technology and patents
developed by Kodak that have been field tested but not yet
commercialized.
Under the terms of the agreement, Adaptive will pay approximately
$1 million in stock and cash in addition to future royalties.
The OCR subsystem is a self-contained, modular subsystem that can
be installed in new or existing Kodak scanners and microimagers. The
optional subsystem enables companies to accurately recognize and
capture information contained on forms and other data sources,
converting the information into computer processable codes and
automatically entering it into company-wide database. As part of the
agreement, Kodak will continue to provide on-site maintenance and
repair to current and new OCR customers under contract as a
third-party maintenance provider for Adaptive Solutions, Inc. In
addition, Adaptive will become an authorized imaging reseller for the
Kodak line of scanners and microimagers and other Kodak imaging
products. As a result, Adaptive will be able to service and support
current Kodak OCR customers, while developing OCR and forms
processing enhancements and upgrades that are expected to be
available in the near future.
"This agreement is the perfect opportunity to jump-start our
strategic shift from a component and technology supplier to a
provider of complete Automated Data Entry solutions," said Daniel J.
Meub, president and CEO of Adaptive Solutions. "We will be able to
build on our years of experience in providing imaging technology for
such companies as Siemens, Mitsubishi and Motorola by adding the
proven Kodak product line, installed base and worldwide service
capability. Using the strength of the Kodak OCR product line as an
initial base, Adaptive will continue to make the necessary
development, marketing and sales investments to grow the business in
the long term. Few vendors in this market will be able to match our
combination of innovation, reliability and service capability."
Current Kodak OCR installations process an estimated 300 million
forms per year for major corporations and government entities
worldwide in such industries as health care and transportation.
"We are pleased to have found such a knowledgeable, dedicated
organization as Adaptive Solutions to carry this product line
forward," said Candy Obourn, president of Kodak's Business Imaging
Systems division. "Adaptive brings excellent technology and industry
expertise that will benefit our current OCR customers now, along with
a dedication to growing this business which will benefit customers in
the years to come."
Adaptive Solutions was founded in 1988 and pioneered data
parallel processing for advanced pattern recognition, image
processing and OCR/ICR applications.
The company currently designs and markets advanced solutions for
Computer Assisted Data Entry to corporate-wide data management
systems. Additional information is available on the company's web
site at www.asi.com.
Kodak Business Imaging Systems, with its Eastman Software
subsidiary, manufactures and markets integrated systems, hardware,
software and media for a range of document, image and work management
applications that require micrographics, digital or hybrid solutions.
For more information, visit the Kodak web site at www.kodak.com.
CONTACT: Media contact (Adaptive) Media contact (Kodak)
Daniel Meub Engelina Jaspers
Phone: 503-690-1236 Phone: 716-724-3527
Fax: 503-690-1249 Fax: 716-724-3561
e-mail: meub@asi.com e-mail: jaspers@kodak.com
or
Charles Smith
Phone: 716/724-4513
Fax: 716/724-0964
e-mail: cssmith@kodak.com
KEYWORD: OREGON NEW YORK
INDUSTRY KEYWORD: COMPUTERS/ELECTRONICS COMED
CHEMICALS/PLASTICS
URL: kodak.com
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