Even a better spin on the news. Better than I thought.
Lernout & Hauspie Investment Company Invests in Applied Voice Recognition
L & H Investment Company Backs Acquisition Program Of Internet-based Voice Recognition Company
HOUSTON--(BUSINESS WIRE)--Jan. 12, 1999-- Applied Voice Recognition, Inc. (OTCBB: AVRI - news; ''AVRI'') and L & H Investment Co. N.V., (''LHIC''), an investment company recently formed by Jo Lernout and Pol Hauspie, co-founders of Lernout & Hauspie Speech Products, N.V. (NASDAQ: LHSPF - news; ''LHSPF''), announced today that LHIC will invest up to $8.75 million in AVRI. The investment will be in $5 million of AVRI preferred stock and the remainder in AVRI common stock. The preferred stock is convertible into common stock at $1.50 per share, and is subject to restrictions on transfer for three years.
The companies also announced that Jo Lernout, Co-Chairman and Founder of LHSPF, will serve as a member of the AVRI Board of Directors. An additional LHIC executive is to be designated for a second position on the Board.
Under the terms of the investment agreement, AVRI will receive $3 million initially and $2 million by February 28, 1999, based on the achievement of certain milestones. Investment of the remainder of the funds is based upon the exercise of warrants to purchase up to 3 million shares of AVRI common stock at the discretion of LHIC.
In announcing the agreement, Jo Lernout stated, ''LHIC's decision to make this major investment was prompted by AVRI's VoiceCOMMANDER 99® system, a state-of-the-art Internet and voice recognition based medical transcription technology. This technology utilizes voice recognition and secure Internet communication to improve the quality and reduce the cost of medical transcription.'' Mr. Lernout added, ''The medical industry is a vertical market which we believe is a major opportunity for voice recognition technology. AVRI's plan to acquire medical transcription companies and integrate VoiceCOMMANDER 99 to substantially lower the cost of producing medical documents is a unique investment opportunity.''
In addition, AVRI has entered into a licensing and co-development agreement with LHSPF. Timothy J. Connolly, Chairman and Chief Executive Officer of AVRI, said, ''LHSPF is a world renowned leader in the field of voice recognition technology and Microsoft's investment in LHSPF clearly underscores its unique position in the industry. The LHIC investment in AVRI is a tremendous vote of confidence in our mission and acquisition strategy and we are honored that Jo Lernout has agreed to serve as a member of the AVRI Board.''
About AVRI
AVRI develops and markets innovative voice recognition solutions for the healthcare information technology industry that allow professionals to immediately transform voice dictation into formatted text. Founded in 1994, AVRI has invested in excess of $13 million in voice recognition applications, leading to its focus on the healthcare information technology marketplace. Experience with major voice technology research labs such as Lernout and Hauspie, IBM, Dragon Systems and Philips Dictation provide AVRI with the best industry support available. For more information regarding AVRI, please visit www.voicecommander.com.
About LHIC
Jo Lernout and Pol Hauspie, the co-founders and current co-chairmen of Lernout & Hauspie Speech Products announced the start-up of a new investment company to focus on strategic investments in information technology companies, such as speech and language. The new firm, Lernout & Hauspie Investment Company (LHIC), will operate separately from Lernout & Hauspie Speech Products, a worldwide market leader in speech and linguistic technologies, products and services.
MEDIA ALERT: Tim Connolly will be in New York on Tuesday, Jan. 12, 1999 and will be available for interviews. For information, please call Joe Mansi or Jeff Corbin at KCSA Worldwide @ 212-682-6300.
This press release contains forward-looking statements relating to future revenues and operating information and their impact on future results. Actual results could differ materially from those projected in the forward looking statements as a result of risk factors such as market conditions, product life cycles, customer delays in purchasing products, technology shifts, potential difficulties in introducing new products, competition, price sensitivity and the uncertainty of continuing market acceptance of the Company's products by distributors, retailers and consumers.
Contact:
Applied Voice Recognition, Inc.
Timothy J. Connolly, Chairman & CEO
connolly@voicecommander.com
1-888-292-AVRI
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