NEWS: SETO
(BSNS WIRE) SETO Holdings, Inc. Announces Receiving Approval for Another
SETO Holdings, Inc. Announces Receiving Approval for Another Hdd Product to be
Sold to Read Rite Corp., Thailand
Business Editors
BRIARCLIFF MANOR, N.Y.--(BUSINESS WIRE)--March 15, 1999-- SETO
Holdings, Inc.(OTC BB: SETO) Mr. Pian , SETO's President, said "SETO
has received confirmation from Read Rite Corp. of Thailand, (NASDAQ:
RDRT), that the first of two products submitted for evaluation has
passed testing and is approved for production. The second evaluation
of a similar product is expected to be completed during April/ May
1999." Read Rite Corp. is the world's No. 1 independent maker of
magnetic recording heads used in hard disk drives.
SETO has already negotiated pricing with Read Rite and estimates
revenue will be in the same range as the order recently received from
Seagate Technology, Inc. (NYSE: SEG), the world's leading independent
maker of storage drives for computers. The Seagate contract is valued
at approximately $500,000 per year. Confirmation of orders from Read
Rite is expected in second quarter of 1999.
The product approved by Read Rite is different than the Seagate
ceramic slider plate but has the same end-use in the manufacture and
fabrication of the drive head materials. This additional product gives
DTI Technology, a wholly owned subsidiary of SETO Holding Inc.,
another consumable item for the disk drive industry. ECS, East Coast
Sales Co. Inc. New York, also a SETO subsidiary, was again
instrumental in the technology and know-how to produce these parts and
is committed in continuing the technical support to satisfy the needs
of the customer. This is the second major product in a new industry
for SETO, with several more being developed for 1999. Test results
from three other hard disk drive manufacturers in other countries, for
these same products, are expected within the next 3 to 4 months. Mr.
Pian said, "It is too early to estimate the value of the additional
potential orders from the new customers presently testing and
evaluating, however we anticipate that the revenue from these
contracts will equal or exceed those of Read Rite and Seagate."
In addition, Mr. Pian, reported that the ECS, East Coast Sales
subsidiary of SETO Holdings, has received a 100% increase in orders
for the first quarter ending April 30, 1999 from ECS's second largest
customer for technical ceramics. Mr. Pian stated, "If continued at
this level, the customer will be in excess of $1 million in revenue
for fiscal year ending January 31, 2000." In addition to this increase
in orders, our customer has indicated that new products are in final
stages of evaluations from their clients, which is expected to
generate new business for them starting the second quarter of 1999.
This will help ECS maintain the first quarter growth for the second
quarter and would also increase growth over the current level for the
fiscal year ending Jan. 31, 1999."
The preliminary estimates for year ending January 31, 1999 for
revenue of $2.8 million with EPS of $.03 , "might be understated as we
come close to finalizing the accounts." Final results are expected
soon, and the annual 10k SEC filing should be completed ahead of its
required release by April 30, 1999.
SETO HOLDINGS, Inc., formerly Semicon Tools Inc. has been a
public Company since 1987 and operates as a broad based technical
manufacturer in two major product groupings: Technical products: to
industry: inclusive of diamond tools for wafer fab, clean room
supplies and technical ceramics. Consumer products: cellular phone
batteries.
"Safe Harbor" statement under the Private securities Litigation
Reform Act of 1995 Statements contained in this release which are not
historical facts are forward looking statements that involve risks and
uncertainties that could cause actual results to differ from projected
results. Factors that could actual results to differ materially
include, among others, economic and political events in or effecting
Malaysia, the Company's dependence on the semiconductor industry and
other risk factors detailed in the Company's Securities and Exchange
Commission filings.
--30--ks/ny*
CONTACT: Contacts for Investor Information:
Direct to SETO HOLDINGS, Inc.
Gene Pian, President
Tel: 914 923 5000
Fax: 914 923 6225
Company web site: www.SETOHOLDINGS.Com /
www.stidiamond.com /
email:stiandecs@aol.com
KEYWORD: NEW YORK
INDUSTRY KEYWORD: CHEMICALS/PLASTICS COMPUTERS/ELECTRONICS
COMED INTERACTIVE/MULTIMEDIA/INTERNET
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