GOT IT!!!...***NEWS RELEASE***...Not who I thought it was, but just as good...
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FOR FURTHER INFORMATION PLEASE CONTACT:
Simmonds Capital Limited
David O'Kell
(905) 837-9909
or
Vianet Technologies
Peter Leighton
(212) 343-2303
or
Develcon Ltd.
Geoff Bennett
(416) 385-4200
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NEWS RELEASE TRANSMITTED BY CANADIAN CORPORATE NEWS
FOR: SIMMONDS CAPITAL LIMITED
TSE SYMBOL: SMM
AND VIANET TECHNOLOGIES, INC.
OTC Bulletin Board SYMBOL: VNTK
APRIL 13, 1999
Simmonds Capital Limited and Vianet Technologies, Inc.
Form Strategic Alliance for the Development and
Manufacturing of Communication Products
TORONTO, ONTARIO and NEW YORK, NEW YORK--Simmonds Capital Limited
and Vianet Technologies, Inc. announced today that they have
reached agreement on a strategic alliance with respect to the
development of products for the telecommunications market.
Simmonds Capital is currently involved in the market through SCL
Technologies, a contract manufacturer in Amherst, Nova Scotia.
Earlier this year Vianet announced an agreement to acquire
Develcon Electronics Ltd. of Toronto, Ontario, (TSE:DLC). This
acquisition is subject to approval by Develcon shareholders at a
meeting to be held in May 1999. Following the acquisition of
Develcon by Vianet, Simmonds Capital Limited has agreed to invest
up to CDN. $1.5 million in Vianet through the purchase of Vianet
common treasury shares.
Develcon has granted SCL Technologies an exclusive three year
manufacturing contract for the manufacture of printed circuit
board products. The minimum volume of products to be
manufactured by SCL Technologies over the three year period is
estimated to be $18 million, based upon the current forecast.
This volume could be substantially higher with accelerated growth
of Develcon sales following the planned takeover by Vianet next
month.
John Simmonds, the CEO of Simmonds Capital, stated "We are very
excited about the opportunities for both companies through this
strategic alliance. With Vianet's leadership the future business
potential of Develcon is impressive. Through the manufacturing
support at SCL Technologies and our share investment, we are
pleased to be working with the management at Vianet to help them
achieve their goals of increased market penetration in the
telecommunications market. This is but one of many areas where
we can assist each other in further business development."
Peter Leighton, the CEO of Vianet stated "SCL Technologies is an
established manufacturing supplier to the telecommunications
market. They can provide high quality and cost effective
manufacturing support for Develcon. We are looking forward to
working more closely with SCL Technologies on further enhancements
to the design of the current Orbitor and Athena products from
Develcon. The manufacturing contract for SCL Technologies and
the share investment by Simmonds Capital is just the beginning of
a mutually rewarding relationship between our two companies."
Develcon is a global provider of enterprise network solutions and
LAN/WAN connectivity. Vianet Technologies specializes in the
development and delivery of products which address enterprise
needs for the convergence of voice, video and data technologies.
Simmonds Capital Limited is a diversified management company
involved in the contract manufacturing, electronics distribution
and wireless communications markets.
Except for the historical information contained herein, the
statements in this announcement are forward looking statements
which involve risks and uncertainties that could cause actual
results to differ materially from those expressed in, or implied
by, the forward looking statements. Factors that might cause such
a difference include, but are not limited to, those relating to:
the acquisition by Vianet of Develcon Electronics; general
economic conditions in the markets in which the companies
operate; success in the development and market acceptance of new
and existing products; dependence on suppliers, third party
manufacturers and channels of distribution; customer and product
concentration; fluctuations in customer demand; maintaining access
to external sources of capital; ability to execute management's
margin improvement and cost control plans; overall management of
the companies' expansion; and other risk factors detailed from
time to time in the companies' filings with regulatory bodies. |
