Intermagnetics General Forms Strategic Alliance with KryoTech, Inc.
Intermagnetics Commits $5 Million For 22% Stake in 'Cool Computing' Leader
March 25, 1998 02:05 PM
LATHAM, N.Y., March 25 /PRNewswire/ -- Intermagnetics General Corporation IMG , today announced a strategic alliance with privately held
KryoTech, Inc. in which the companies will work together to pursue the emerging market opportunity for very high performance, cooled
computers. Intermagnetics will invest $5 million in transactions that combine the purchase of shares and options of KryoTech, designed to
aggregate 22 percent of the company's equity on a fully diluted basis.
Intermagnetics granted KryoTech exclusive worldwide rights to sell computer-chip-cooling equipment incorporating Intermagnetics' refrigeration
technology based products. KryoTech already has demonstrated computers that incorporate cooling systems which speed up computers by as
much as 35 percent. The strategic alliance between the two companies is initially in effect until 2005 and can be extended by mutual
agreement. Intermagnetics gained representation on the KryoTech board of directors proportionate to its equity interest in the company.
"We are convinced that this partnership with KryoTech is our best means of rapidly capitalizing on the fast emerging market for cooled
computers," said Carl H. Rosner, chairman and chief executive officer of Intermagnetics. "The combination of KryoTech's experience with the
computer industry through introduction of cooled computers and IGC's advanced refrigeration capabilities will provide for continued technological
and market leadership in this exciting and very promising market. We look forward to contributing to, and sharing in, KryoTech's future
success."
Al Quick, chairman and CEO of KryoTech, added: "Beyond providing a cash infusion to support our near-term growth, this alliance enhances
our technology with Intermagnetics' current and future refrigeration products and fortifies our long-term competitive position. We also have
gained a highly respected and accomplished business partner who shares our vision."
KryoTech, based in Columbia, South Carolina, develops and manufactures value-added thermal management solutions for the computer
industry. The company recently demonstrated computer workstation prototypes with Digital Equipment Corporation and Advanced Micro
Devices. For more information about KryoTech visit www.kryotech.com.
Intermagnetics is a leading developer and manufacturer of superconducting LTS and HTS magnets, wire and cable as well as associated
low-temperature refrigeration equipment, the combination of which is essential to successful application of superconductivity such as Magnetic
Resonance Imaging (MRI). The Company is dedicated to the development and commercialization of applied superconductivity and refrigeration
systems. The Company also supplies permanent magnet systems, materials separation equipment and FRIGC(R) refrigerants as replacements
for ozone-depleting refrigerants.
Note: Cool Computing is a registered trademark of KryoTech, Inc. FRIGC is a registered trademark of InterCool Energy Corporation, a
wholly-owned subsidiary of Intermagnetics General Corporation. SOURCE Intermagnetics General Corporation |
