This will explain the move in Vari-L yesterday and today:
Vari-L Company Announces Letter of Intent with China to Jointly
Manufacture Wireless Components
PR Newswire, Tuesday, October 29, 1996 at 08:45
DENVER, Oct. 29 /PRNewswire/ -- Vari-L Company, Inc. (Nasdaq-NNM:
VARL), a provider of radio frequency (RF) and microwave signal
processing components used in the wireless telecommunications
industry, today announced a Letter of Intent with the State run
Chen-Hui Co. in the People's Republic of China.
Under terms of the pact, which is subject to execution of a
definitive agreement, Vari-L and the Chen-Hui Co. will manufacture
Vari-L's products at a state-owned factory in Beijing, China, for
distribution to Chinese and worldwide markets. Products covered
under the joint agreement will include Vari-L's patented Voltage
Controlled Oscillators (VCOs) and Phase Locked Loop Synthesizers
(PLLs).
The agreement calls for Vari-L to contribute a license of its
proprietary processes along with its manufacturing, marketing and
business expertise to the joint venture in return for a 51% ownership
position. Chen-Hui, which will own the remaining 49%, will
contribute plant, equipment and labor, and will obtain all
necessary government approvals, including assurances of patent and
trade secret protection.
"This agreement will represent a significant milestone in
Vari-L's strategy to aggressively expand into worldwide markets,"
said Dave Sherman, president. "We are particularly pleased with the
relative speed with which we were able to reach accord with our
Chinese partners, and we are looking forward to moving ahead
rapidly."
Sherman noted that the pending agreement with China resulted
directly from the Company's Pacific Rim marketing initiative
launched earlier this year. "China and other rapidly emerging nations
in the Pacific Rim represent strong potential markets for our
products," Sherman said. "We will continue to focus heavily on
worldwide markets as we wait for the domestic PCS market to gain
momentum."
Through its headquarters in Denver, Vari-L designs, manufactures
and markets a wide range of RF and microwave signal processing
components used in the wireless telecommunications industry for both
commercial and military applications. Vari-L serves a diverse
customer base comprised of some of the world's leading technology
companies including AT&T, Ericsson, Hughes, IBM, Lockheed, Magnavox,
Motorola, Nokia, Northern Telecom, QUALCOMM, Raytheon, Steinbrecher,
and Texas Instruments.
SOURCE Vari-L Company, Inc.
-0- 10/29/96
/CONTACT: Dave Sherman, President of Vari-L Company, Inc.,
303-371-1560; Jay Pfeiffer or Lillian Craze, both of Pfeiffer
Public Relations, Inc., 303-393-7044/ |
