03/10 10:17 Global MAINTECH to Acquire Breece Hill and to Write Down Certain
<GLBM.OB>
Global MAINTECH to Acquire Breece
Hill and to Write Down Certain Assets
MINNEAPOLIS--(BUSINESS WIRE)--March 10, 1999--Global MAINTECH
Corporation (OTC-BB: GLBM), a worldwide leader in enterprise
management software for data centers, announces that it has signed a
definitive agreement to acquire Breece Hill Technologies, Inc. of
Boulder, Colorado. Breece Hill, a privately owned computer peripherals
company with 1998 sales in excess of $30 million, is a leading
manufacturer of data storage libraries to data centers. The agreement
is subject to approval by Breece Hill shareholders, which is
anticipated within a month; Breece Hill shareholders will then receive
warrants to purchase approximately 20 percent of Global Maintech
stock.
According to Joe Schiavone, MAINTECH's Vice President of Sales
and Marketing, "Breece Hill brings to us terrific data center
synergies; they have the world's best storage devices for digital
linear tape and have particular strength in distributed environments
and Y2k solutions. Along with MAINTECH's suite of enterprise
management capabilities, the combined company provides some
best-of-breed data center solutions. We are now a clear-cut leader in
important niches of the huge and dynamic market of systems
management."
Global MAINTECH was founded in 1992 to create an advanced data
center automation architecture that monitors, manages and controls
computers, operating systems and network devices. The enterprise
monitoring market is growing at an estimated rate of 30% per year.
Breece Hill was founded in 1993 to provide superior digital linear
tape libraries to the expanding backup and data storage market, and
this market is estimated by Freeman & Associates also to be growing at
30% per year. "We believe that this acquisition will position the
combined company to be a major force in the exploding data storage and
enterprise monitoring markets in the corporate 1000 data centers,"
said James Watson, CEO and President of Breece Hill. "The synergies
would allow the combined companies to provide software, hardware,
connectivity and services to support our current and targeted
customers."
Global MAINTECH also announced that it expects to report a loss
for 1998. The loss is largely attributable to one-time write-downs of
certain development and acquisition assets. The amount of the loss has
not yet been determined.
The focal point of MAINTECH's suite of systems and network
management software products for data centers is its Virtual Command
Center (VCC). The VCC is a master console that provides a single
point-of-control for mainframe, midrange, UNIX, Microsoft NT and
network devices. It can provide efficient consolidation of consoles
for delivery of software provided by other companies in the enterprise
management market. As part of the original team that developed digital
linear tape technology, Breece Hill Technologies provides tape
libraries which are unsurpassed in reliability, performance and
capacity to meet current, future and Y2k needs.
Forward-looking statements in this release are made pursuant to
the "safe harbor" provisions of the Private Securities Litigation
Reform Act of 1995. Investors are cautioned that such forward-looking
statements involve risk and uncertainties, including without
limitations, continued use of the Company's services, and the
continued availability of labor resources.
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CONTACT:
David McCaffrey, CEO
James Geiser, CFO, Secretary
Global MAINTECH Corporation
7578 Market Place Drive
Eden Prairie, MN 55344
Phone: (612) 944-0400
FAX: (612) 944-3311
Web Site: www.globalmt.com |
