" HUNTINGTON STATION, N.Y., Jan. 14 /PRNewswire/ -- CopyTele, Inc.
(Nasdaq-NNM: COPY) announced today that it has entered into three distribution
agreements for the sale and service of its MAGICOM(R) 2000 product. These
agreements are for terms of three years, provide for the purchase of the
distributors' requirements of MAGICOM 2000 units for sale in the designated
territories, and are part of CopyTele's plan to penetrate world-wide markets
in progressive stages. The agreements provide for monthly purchase orders in
increasing quantities commencing in the first quarter of 1997 to be
accompanied by irrevocable bank letters of credit furnished by the
distributors. The aggregate purchase price for the total quantities
contracted for sale under the three distribution agreements is approximately
$90 million.
In North Africa, CopyTele entered into an agreement with a consortium of
companies in Tunisia whose territory includes the countries of Tunisia,
Algeria and Morocco. These companies are presently engaged in sales and
service in the fields of telecommunications, mobile communications, satellite
systems, security and office products.
In Egypt, CopyTele entered into agreements with two distributors that
provide sales and service to telecommunications customers in the public and
private sectors. One of the distributors specializes in telecommunications
equipment for banks, hotels, governmental, commercial and industrial customers
while the other specializes in the planning, implementation and maintenance of
integrated public and private telephone systems networks utilizing PBX's,
modem telephones, cables and accessories, within the governmental and
commercial fields. Jointly, they have been directly responsible for the
software and hardware design, installation and maintenance in Egypt of over
300,000 local telephone lines and maintain an extensive sales network
throughout Egypt which will be available for distribution of the MAGICOM 2000
product.
MAGICOM 2000, which is CopyTele's first product, is in its initial stages
of production and marketing. The outcome of these agreements will depend upon
factors ordinarily associated with any new product, such as the distributors
ability to market the contracted quantities in their respective territories as
well as the capability of CopyTele to produce sufficient quantities of the
product. Shanghai CopyTele Electronics Co., Ltd. ("SCE"), the Company's
55% owned joint venture, has commenced production of commercially marketable
MAGICOM 2000 at its rental facility in Shanghai, China. SCE also has begun
the process of phasing in its new 30,000 square foot facility to produce
MAGICOM 2000 during the first quarter of 1997.................." |
