MORE NEWS
FOR IMMEDIATE RELEASE
Mr. Carl Golasa President & CEO, Interaxx Technologies, (OTC:BB INAX)
announced the signing of Letters of Intent to enter into joint venture agreements with Gemtronics, Inc. Sunrise, Florida and Multi Methods, Inc. Longwood, Florida.Interaxx is entering financial due diligence with each firm and pending satisfactory results will finalize negotiations, final contract signing could be accomplished within 45 days.
Both Gemtronics and Multi Methods, contract manufacturers, offer the most modern,leading edge, state of the art EMS (electronic manufacturing services). The proximity of these two firms and their unique capabilities complement each other and create a synergistic effect that supports significant growth.
It is Interaxx's intention to develope a business unit offering EMS (electronic manufacturing services) to the industry. Our entry into this business sector will allow Interaxx to support all present and future internal development programs as well as anticipated outside development contracts. This business unit will provide a revenue flow to support these activities.
Interaxx has performed complete due diligence and has determined that the EMS market is emerging in the USA and has significant growth and profit potential to warrant our entry at this time.
Included is some commentary from well known sources:
*BEAR STERNS & CO. INC. - THOMAS HOPKINS
Forecasters have projected compound annual growth of about 25% for the CEM industry in the next five years. Hopkins believes growth could easily exceed 35% next year. learly 1999 is going to be a huge year with all the new contracts," Hopkins said "we've recently seen Jabil secure a $500 million [annual] contract from Hewlett-Packard, $250 million from Bay Networks, and $250 million from Dell Computer. Selectron won a $500 million contract from IBM and $700 million from NCR. The list goes on and on."
ELECTRONIC BUYERS NEWS - DARRELL DUNN
OEMs' outsourcing of their manufacturing is one of the most significant developments in the electronics industry since the invention of the IC. Industry observers believe that 1999 could be a watershed year for CEMs, whose revenue could rise by almost 40% from this year. |
