Zomax Optical Media, Inc. Announces Investment in Internet Based Licensee and Reseller of Computer Software
MINNEAPOLIS, Oct. 6 /PRNewswire/ -- Zomax Optical Media, Inc. (Nasdaq: ZOMX - news) today announced a $5.0 million investment in Chumbo Holdings Corporation, a Minneapolis based Internet licensee and reseller of computer software. Chumbo has developed proprietary software for Internet commerce and operates its website (http://www.chumbo.com) selling computer software over the Internet. As a result of this investment, Zomax will own 33% of Chumbo, provide fulfillment and distribution services to Chumbo and have access to the Chumbo internet software to service Zomax customers. In making this investment, James T. Anderson, CEO of Zomax, will assume the role of CEO at Chumbo Holdings Corporation. Tim Burton will remain President of Chumbo and continue to be responsible for day to day operations.
Commenting, Anderson said, ''This investment should greatly benefit both companies. Chumbo obtains necessary funding to execute its goal of becoming a leading Internet based software reseller. Zomax obtains an e-commerce solution for its customers as well as the opportunity to provide certain manufacturing and distribution services for Chumbo. This alliance should allow Zomax and Chumbo to better serve the computer OEM and software publishing industries.''
''Zomax brings a great deal of capabilities and experience to our fast growing organization,'' said Tim Burton, President of Chumbo Holdings. ''Their capabilities, along with the capital infusion, will help us solidify our market position and increase our market share in this fast paced and ever changing industry.''
Zomax Optical Media, Inc. is a leading outsource service provider to software publishers, computer manufacturers and other producers of multimedia products. These outsourcing services include compact disc (CD) and digital versatile disc (DVD) mastering; DVD, CD, diskette and cassette replication; graphic design; print management; CD printing packaging; warehousing; inventory management; distribution and fulfillment; and returned merchandise authorization (RMA) processing services. Zomax has facilities in Minneapolis, Boston, Hayward, Indianapolis, San Jose and Dublin, Ireland.
Statements contained in this press release regarding the business prospects for Chumbo and Zomax as a result of the investment made are forward-looking, based on current expectations. These forward-looking statements are made pursuant to the safe harbor provisions of the Private Securities Reform Act of 1995. There are certain risks and uncertainties that could cause results to differ materially from these anticipated, including: the ability of Chumbo, a development stage company, to emerge as a profitable Internet reseller of computer software, strategies of customers, market demand, general economic factors, such as consumer confidence and inflation, and Zomax's ability to successfully implement Internet based commerce. Investors are cautioned that all forward-looking statements involve risk and uncertainty.
SOURCE: Zomax Optical Media, Inc. |
