nternational Semiconductor Corp. and DataPower USA, Inc., Shareholders Enter
Into Share Exchange Agreement
February 2, 1999, 4:30pm EST, Los Angeles, CA. Brian Harris, Chairman of
DataPower USA, Inc., announced today that Datapower USA's Board of Directors
is reviewing a share exchange agreement entered into between two of its
shareholders and International Semiconductor, Inc. International
Semiconductor, Inc., is traded on the OTC Bulletin Board Symbol ISSM. Mr.
Harris stated "the share exchange will make Datapower a 59.4% owned Subsidiary
of ISC, it will broaden the management base of the Company and allow Datapower
to enter new international markets". The proposed transaction is a tax-free
exchange of shares between the Datapower USA shareholders and International
Semiconductor. The Datapower shareholders will exchange 59.4% of Datapower
for 60% of International Semiconductor. Mr. Harris stated the board of
Directors sees no impediment to its approval of the proposed transaction.
International Semiconductor is the developer of a new generation of stable low
cost Gallium Arsenide products for the electronic, defense and
telecommunications industries. Datapower USA manufactures and markets video
telephony products in Canada, Australia, New Zealand and South Africa under an
exclusive license granted by World Wide Video, Inc. Under the terms of the
License agreement Datapower can "Private Label" these products for
distribution through out the world. DataPower products use proprietary
compression programs and hardware that allow the transmission of Video, Voice
and Data over POTS lines and the internet at speeds of up to 15 clear frames
per second.
Robert M. Terry, International Semiconductor Chairman said "This transaction
gives ISC two major opportunities in one of the fastest growing markets in the
world. Telecommunications reliable than high heat effected silicon based
chips and diodes." Mr. Terry further stated " We believe that cost effective,
high speed, reliable Gallium Arsenide based components are the wave of the
future for burgeoning Telecommunications and Computer industries."
Related to video compression applications, Mr. Harris commented. "We agree
with industry forecasts that the video phone market and videoconferencing
markets will total over $15 billion within the next five years. We think that
this is now very close to finally becoming a reality. The recently announced
$30 million investment of Intel into Picturetel, who are the leader in
broadband applications, appears to validate a market that has been waiting to
happen. The potential for video telephony includes every desktop computer,
every home and every business that needs to communicate. High quality, low
cost video is one of the next applications with enormous potential. The fact
that our products will provide video service at a new plateau in availability,
video quality and at a lower cost over Plain Old Telephone Systems (which
represent over 87% of the world's present telephone networks) is a tremendous
opportunity. At this time we are a junior player, but we believe that because
of our core technologies, we have the potential of moving quickly up the
ladder. Now that DataPower is part of a public company, we will be in a
position to move ahead with these opportunities in a more aggressive manner."
This release contains "forward-looking statements" as defined under the
Federal Securities Laws. Actual results could differ materially form those
projected in the forward-looking statements as a result of certain risk
factors, including but not limited to: (i) a failure to close the share
exchange; (ii) delays in the development of new technology and the transition
to new products; (iii) other one-time events and other important factors
disclosed previously and from time to time in International Semiconductor
Corporations filings with the U.S. Securities Exchange Commission.
For More Information Contact:
Brian Harris at (604) 608-3251 |
