Projectavision Completes Transaction with Vidikron Industries; Creates
Home Theater Leader with Global Reach
603 Words
5069 Characters
12/09/98
18:07
PR Newswire
(Copyright (c) 1998, PR Newswire)
NEW YORK and MILAN, Italy, Dec. 9 /PRNewswire/ -- In a move to broaden its
product line and create global reach in the fast-growing home theater market,
* Projectavision, Inc. (Nasdaq: PJTV) today announced that it had completed its
transaction with Vidikron Industries, S.p.A., including its U.S. subsidiary,
Vidikron of America. Vidikron, a private company headquartered in Milan,
Italy with $20 million in sales, is a leading manufacturer and marketer of
high-end projection systems for the consumer and commercial markets serving
customers in over 30 countries worldwide.
The transaction was effected with a combination of cash and securities with
financing provided or arranged by the Company's existing investors who also,
* in addition agreed to restructure their interests in Projectavision,
converting all of their securities into fixed price securities. As previously
indicated by the Company, the infusion of additional capital and ownership
restructuring would be substantially dilutive, at current prices, to existing
* shareholders. Projectavision was advised by Hambro America Securities, Inc.,
on the transaction.
* Projectavision also announced several immediate moves to realize the
synergies and cost efficiencies because of the transaction, including the
elimination of ten redundant positions, and the consolidation of the U.S.
headquarters of the business into the current facilities of Vidikron of
America in Jersey City, NJ, effective January 1.
"We are delighted to complete our transaction with Vidikron, a consistently
profitable, highly regarded leader in an industry that is projected to reach
$10 billion in annual revenues over the coming years," said Martin J.
* Holleran, President and CEO of Projectavision. "Marketing both the
* Projectavision and Vidikron brands through similar audio/video specialty and
home theater channels, while taking advantage of Vidikron's existing global
sales and distribution network, positions us to become the premier developer,
marketer and licenser of high-end projection products. We also believe we can
further develop the technology resident in both companies, while insuring that
* the service provided to Vidikron and Projectavision customers is exceptional."
"We are excited about unleashing the potential that Vidikron has for
substantial growth in high-end projection markets worldwide," said Flavio
Peralda, who will remain with the company as President of Vidikron S.p.A., and
a member of the Board of Directors of the new company. "With access to the
capital necessary to build on the product design flair and innovation Vidikron
is known for, combined with the engineering, marketing, and administrative
* know-how of Projectavision, we believe that customers will experience the
strong level of service and technology that sophisticated consumer and
business users really appreciate."
* Projectavision is a New York based company in the business of developing and
marketing technological innovations in the electronics display and information
* industries. Projectavision has developed patented and patent pending
technologies for interchangeable front and rear screen Home Theater Television
* systems. Copies of Projectavision's press releases, SEC filings, current
price quotes and other corporate information may be found on the website:
* www.Projectavision.com or www.hawkassociates.com.
The foregoing press release contains forward-looking statements, including
statements regarding, among other things, the Company's expectation of its
future business. These forward-looking statements are based largely on the
Company's expectations and subject to a number of risks and uncertainties,
certain of which are beyond the Company's control. Actual results could
differ materially from these forwarding-looking statements as a result of a
variety of factors including, among others, the production schedules of
unaffiliated third parties, availability of component parts. Consumer
acceptance of the Company's product and prevailing economic conditions as they
affect the consumer electronics industry in general. In light of these risks
and uncertainties there can be no assurance that the forward-looking
statements contained in this press release will in fact transpire or prove to
be accurate.
* /CONTACT: Martin J. Holleran, President/CEO of Projectavision, Inc.,
212-971-3000; or Media - Alex Stanton of Stanton-Crenshaw,
212-780-1900, or alex@stanton-crenshaw.com; or Investor - Frank Hawkins
of Hawk Associates, 305-852-2383, or Fhawk@hawkassociates.com, for
* Projectavision, Inc./
17:52 EST
I0607 * End of document.
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