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Technology Stocks : SNDT - Sand Technology - A diamond in the sand -- Ignore unavailable to you. Want to Upgrade?

To: let who wrote (1094)	7/8/1999 8:24:00 AM
From: Sleeper	Respond to of 1200

Thursday July 8, 7:59 am Eastern Time Company Press Release Sand Technology and Hitachi Data Systems Corporation Agree to Sale of Sand's Share in Hitachi Data Systems Joint Venture Hitachi Data Systems Corporation and Sand to Continue to Work Cooperatively While Operating Independently SANTA CLARA, Calif.--(BUSINESS WIRE)--July 8, 1999-- Hitachi Data Systems Corporation (NYSE:HIT - news) and Sand Technology Systems International, Inc. (Nasdaq:SNDCF - news) today announced an agreement whereby Sand sells its 40% share in Hitachi Data Systems Inc., the Canadian operating arm of Hitachi Data Systems Corporation of Santa Clara, California, to Hitachi Data Systems Corporation, thereby making the Canadian operation a wholly-owned subsidiary of Hitachi Data Systems Corporation. For Hitachi Data Systems Inc., a.k.a. Hitachi Data Systems Canada, no immediate changes to current company direction or operations are expected. Hitachi Data Systems Corporation is becoming more solutions-oriented, and plans to supplement its direct sales model with an indirect sales model. The change allows Hitachi Data Systems Inc. to consolidate and focus its efforts on the needs of the Canadian market with no projected changes in management or employee base. For Sand, this represents the optimal time to realize its investment in Hitachi Data Systems Inc., since the additional capital provided from the sale will help fuel Sand's marketing and development efforts related to its Nucleus© product suite. Commenting on the decision to sell its share of the Canadian joint venture with Hitachi Data Systems, Arthur Ritchie, chairman and CEO of Sand Technology, said ``Hitachi Data Systems is focused on growth and is repositioning the company to meet the changing needs of its customers, as evidenced by its recent OEM and joint technology agreement with Hewlett-Packard. At the same time, Sand too is focused on growth, and the capital from this transaction will provide us with an additional measure of independence to grow our business. We agreed that, during the next few years, both companies would better realize our respective goals by working together, but operating independently.' According to the predefined terms of the Shareholders Agreement, Sand's stake in Hitachi Data Systems Inc. is valued at more than $7 million Canadian. This is in addition to the $4 million Canadian that Sand has realized through dividends paid over the last two years. As for the most strategic part of the Hitachi Data Systems and Sand relationship, the Nucleus© Exploration Suite(tm), the sale of Sand's stake in the Hitachi Data Systems Canadian operational joint venture will have no effect on Hitachi Data Systems' current plans to market Sand's Nucleus technology in selected markets as part of its solutions offering. ``This decision in no way diminishes the relationship between Sand Technology and Hitachi Data Systems, one that began almost two decades ago,' said Mr. Ritchie. Clark Straw, executive vice president of worldwide sales for Hitachi Data Systems, added, ``Sand Technology's partnership in the Canadian Hitachi Data Systems operation has helped provide innovation and profit focus to our business. We now want to build on this success as we transition into a more solutions-oriented company.'