Here's the story;
Founders of Lernout & Hauspie Speech Products Announce Start-up of
Investment Company
Business Wire - January 11, 1999 17:40
%LH-INVESTMENT LHSPF %NEW-YORK %BANKING %MANAGEMENT %CHANGES V%BW P%BW
IEPER, Belgium--(BUSINESS WIRE)--Jan. 11, 1999--
New Firm Is Latest Component of Entrepreneurs' "Tech Farming" Concept;
Sanford Robertson Named to Board of Directors
Jo Lernout and Pol Hauspie, the co-founders and current co-chairmen of
Lernout & Hauspie Speech Products (Nasdaq: LHSPF) (Easdaq: LHSP) (L&H),
today announced the start-up of a new investment company to focus on
long-term, strategic investments in information technology companies.
The new firm, L&H Investment Company (LHIC), will operate separately
from
Lernout & Hauspie Speech Products, a worldwide market leader in speech and
linguistic technologies, products and services. Messrs. Lernout and
Hauspie
are the major investors in LHIC and, as part of this start-up, just over
half of their 20 percent personal holding in Lernout & Hauspie Speech
Products is being placed into the investment company. It is expected that,
over time, LHIC will add a limited number of other strategic investors.
LHIC is another "building-block" of the overall "Tech Farming" concept
of
Jo Lernout and Pol Hauspie, which comprises the Flanders Language Valley
Foundation business/education project in Belgium, as well as the FLV
venture
capital fund and a "seed" financing capability. "The 'Tech Farming'
concept
has proven to be an excellent working instrument to accelerate growth of a
particular industry," said David S. Wetherell, chairman and chief
executive
officer of CMGI, an Andover, Mass.-based company that has successfully
utilized a similar concept in the internet industry. "I am pleased to see
Jo
and Pol's investment company replicating this kind of concept in a market
area with such strong potential growth."
At the same time, LHIC announced that it has completed an investment in
Applied Voice Recognition, Inc. (OTCBB-AVRI), a Houston-based developer
and
marketer of voice-recognition solutions for the health care information
technology industry. Prior to this transaction, its first in a publicly
traded company, LHIC had made investments in four private companies: ViA,
Inc., a Minnesota-based maker of wearable computing and communications
products for workers in dynamic work environments; Mindmaker, Inc., San
Jose, a maker of artificial intelligence technology components and related
products; Mediacom Technologies Pte. Ltd., of Singapore, a designer of
telecommunications products, and Star + Globe Technologies Pte. Ltd.,
Singapore, a provider of multilingual software and solutions. (AVRI, ViA
and
Mindmaker each had a licensing agreement with L&H.)
LHIC also announced that Sanford Robertson, the founder and former
chairman of Robertson Stephens (now BancBoston Robertson Stephens), has
agreed to join the investment company as a director. "Jo and Pol have
built
a leading company in what promises to be one of the most exciting sectors
of
the global economy for years to come," said Mr. Robertson. "I am delighted
to have the opportunity to be part of this new endeavor."
Messrs. Lernout and Hauspie said their decision to create LHIC was a
very
natural step. "We have competence in this area, a vast network of
contacts,
and we can provide capital," they said. "There are numerous interesting,
and
attractive, opportunities in various industries where speech and language
technology can provide important applications. We believe our experience,
and financial support, can make a meaningful contribution."
Added Jos Peeters, one of the first venture capitalists to back Lernout
&
Hauspie Speech Products and a co-founder of EASDAQ: "Jo Lernout and Pol
Hauspie have been unique role models for start-ups and growth companies,
especially in Europe. I'm convinced that their expertise and extensive
network of relationships will facilitate and accelerate the growth of the
enterprises they invest in."
The investment company typically does not seek majority ownership or
control in any of the investments, but it does not exclude the
possibility.
However, LHIC expects that most ownership positions will be in the 15
percent-plus range.
Although the company will be looking to invest broadly in the
information
technology area, it is expected that many of its investments will be
closely
related to Messrs. Lernout and Hauspie's experience in speech, language
and
artificial intelligence technology. LHIC emphasized that none of its
investments will be in the technology areas of Lernout & Hauspie Speech
Products, and that L&H will retain a right of first refusal to make such
investments.
L&H Investment Company, a private investment company based in Ieper,
Belgium, was established in October 1998 to capitalize on the many years
of
experience and extensive contacts of Jo Lernout and Pol Hauspie in
information technology industries such as speech, language and artificial
intelligence. For more information, please visit our web site at
techfarming.com.
Media Alert: Jo Lernout will be in New York on Tuesday, January 12, 1999,
and will be available for interviews. For information, please call Michael
Geczi or Anne George of Sitrick And Company at 212-573-6100.
CONTACT: Michael Geczi
Anne George
Sitrick And Company
212-573-6100
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