A MUCH more interesting developement....
Micron Electronics Executes Letter of
Intent to Acquire Micron Internet
Services and Memorandum of
Understanding Extending SpecTek Supply Agreement
NAMPA, Idaho--(BUSINESS WIRE)--July 20, 1999--Micron Electronics, Inc., (www.micronpc.com)
(Nasdaq:MUEI - news), a leading direct manufacturer of award-winning PCs and services, announces
today the execution of a non-binding letter of intent to acquire Micron Internet Services, a division of
the Company's parent corporation, Micron Technology, Inc., (NYSE:MU - news). Micron Internet
Services offers dedicated, dialup, and broadband Internet access, VPN solutions and e-commerce
services to small and medium-sized businesses, public organizations, and consumers throughout an
expanding area. Micron Internet Services has received Cisco's Powered Network status. Cisco's
Powered Network program enables customers to easily identify service providers that will deliver the
high level of interoperability and performance, as well as new, advanced, and differentiated services
they require. If the transaction is consummated, Micron Electronics will acquire the assets of Micron
Internet Services at book value. The transaction is subject to execution of a definitive agreement and
approval by Micron Electronics' Board of Directors.
``The acquisition of Micron Internet Services, an award-winning ISP, is another important building
block in our strategy to deliver a full suite of premier e-services to the mid-market,' said Joel Kocher,
chairman and chief executive officer for Micron Electronics, Inc.
Two weeks ago, Micron Electronics announced a non-binding letter of intent to acquire HostPro, a
leading Internet content and applications hosting company based in LA.
``We are thrilled at the prospect of joining Micron Electronics' team,' stated Brook Gore, general
manager of Micron Internet Services. ``Their market reach, large customer base, and experience
combined with our expertise and Internet service offerings will allow us to rapidly deploy Internet
solutions to small and medium-sized businesses nationwide.'
Micron Electronics also announced that the Company and Micron Technology have entered into a
non-binding memorandum of understanding to extend and modify their current Component Recovery
Agreement. Under the Component Recovery Agreement, previously scheduled to expire September 2,
1999, Micron Technology is required to deliver to the Company components used in connection with
the SpecTek memory products division. The term of the Component Recovery Agreement would be
extended for two years, with Micron Technology having an option to purchase the SpecTek business at
book value at the commencement of fiscal 2001. Pricing for components would be negotiated quarterly,
with anticipated increases in pricing over the course of the extended term. Micron Technology's
agreement to sell the Micron Internet Services assets to the Company at book value is given in partial
consideration for the Company's agreeing to the proposed modifications to the Component Recovery
Agreement. Additional details concerning this memorandum of understanding are included in the
Company's Form 10-Q, which was recently filed with the Securities and Exchange Commission.
About Micron Internet Services
Micron Internet Services provides integrated Information systems solutions encompassing data, video,
voice and software applications using the latest and increasingly cost effective Internet communication
techniques. Micron Internet Services, providing Internet service commercially since 1994, is a division
of Micron Technology, Inc. Micron Technology, Inc., and its subsidiaries manufacture and market
DRAMs, very fast SRAMs, Flash, other semiconductor components, memory modules, graphics
accelerators, personal computer systems. Micron's common stock is traded on the New York Stock
Exchange (NYSE) under the symbol MU. To learn more about Micron Technology, Inc., visit its Web
site at www.micron.com
About HostPro
Headquartered in Los Angeles, HostPro provides a full range of Web hosting solutions and
comprehensive, scalable Web-based technologies and solutions to a broad spectrum of customers.
Awarded the World's Number One Hosting Company by HostIndex (for every month since Sept
1998), HostPro has established its leadership position in the industry by delivering the features and
functions sought most by today's online innovators. With a global customer base extending to thousands
of customers in more than 70 countries, HostPro is redefining virtual Web hosting through a client
service approach that allows companies of all sizes to envision and articulate a compelling presence on
the Web. Information about HostPro services is available by calling 888-638-5831 or at HostPro's Web
site: www.hostpro.net.
About Micron Electronics
Micron Electronics, Inc. (Nasdaq:MUEI - news), a recognized industry leader and direct vendor
known for its award-winning products and services, develops, manufactures and markets
high-performance, competitively priced computing solutions to consumers, small businesses,
commercial and public sector buyers. Its superior customer service and toll-free technical support is
available to customers 24 hours a day, seven days a week. Micron offers value and convenience
through direct sales via the Internet (www.micronpc.com), by phone 800-776-4519 or by fax
208-893-7240. |
