Phoenix Technologies to Acquire eSupport.com. Will invest an additional $2.5 Million in TouchStone Software Corporation.
Under this agreement, Phoenix intends to leverage TouchStone Software Corporation's focus on investments in Internet Companies by having TouchStone assist in ventures created by Phoenix Technologies.
" We are looking forward to TouchStone assisting us, specifically as we continue to look for strategic investments that will enhance PhoenixNet's capabilities and benefit users, said Sisto. "
Through strategic investments, TSSW has been building a diverse network of Internet-based companies placing it squarely in the center of the new Internet economy. We are continually looking for opportunities that allow us to capitalize on the many opportunities this extraordinary new medium presents. This transaction will allow TSSW to focus on what has now become its core business, " said Pierre Narath, CEO.
Phoenix Technologies to Acquire eSupport.com
Invest Additional $2.5 Million in TouchStone Software Corporation
SAN JOSE, Calif.--(BUSINESS WIRE)--March 8, 2000--Phoenix Technologies Ltd. (Nasdaq: PTEC) -- a worldwide leader in system-enabling software solutions for PCs and connected devices -- today announced that it has entered into a letter of intent to acquire eSupport.com, a wholly owned subsidiary of TouchStone Software Corporation (OTC BB: TSSW) and certain other assets of TouchStone Software Corporation and its subsidiary, Unicore Software, Inc.
The proposed transaction, which will be accounted for as a purchase is valued at approximately $6.5 million. Additionally, Phoenix Technologies Ltd. will purchase $2.5 million in preferred stock from TouchStone Software Corporation
"This transaction brings key intellectual property and technical resources to our offerings for the internet as well as to our BIOS customers," said Al Sisto, chairman and CEO of Phoenix. "In particular, eSupport.com, with its online hardware diagnostic tools, BIOS upgrade technology, and other support products differentiates our on-line services to PhoenixNet customers, bringing added value to our end users."
Under the agreement, Phoenix intends to leverage TouchStone Software Corporation's focus on investments in Internet companies by having TouchStone assist in ventures created by Phoenix Technologies.
"We are looking forward to Touchstone assisting us, specifically as we continue to look for strategic investments that will enhance PhoenixNet's capabilities and benefit users," said Sisto.
"Through strategic investments, TouchStone has been building a diverse network of Internet-based companies placing it squarely in the center of the new Internet economy. We are continually looking for opportunities that allow us to capitalize on the many opportunities this extraordinary new medium presents. This transaction will allow TouchStone to focus on what has now become its core business," said Pierre Narath, chairman and CEO of TouchStone Software.
About esupport.com
Esupport.com is a provider of online diagnostic software and other support products to the IT departments of medium to large companies, as well as third party service providers.
About Phoenix
The Company's BIOS software has been sold to more than 600 customers worldwide and is designed into more than 70 million PCs sold annually, as well as embedded systems and information appliances. Phoenix's Platform Enabling Division's products and services play a critical role in linking computing and communication technologies for OEMs, and for Internet service and content providers benefiting the information consumer.
Phoenix's Internet Division, PhoenixNet, provides ongoing, customized services to individuals worldwide to maximize the potential of their Personal Computer. InSilicon, a wholly owned subsidiary of Phoenix, provides communications and connectivity semiconductor IP cores and protocol software. Founded in 1979, Phoenix is headquartered in San Jose, California. Information about Phoenix and its products is available at phoenix.com.
About Touchstone Software
Headquartered in North Andover, Mass., TouchStone Software Corporation through strategic minority interests, oversees a portfolio comprised of well-managed, late stage technology companies with market presence in e-commerce, content, community and enabling technologies. TouchStone's expertise in identifying opportunities in unique business models and its targeted strategic focus creates both short and long term value for investors and shareholders.
TouchStone's operating model combines the talents of its management team with those of its portfolio of companies. Each of these companies holds a niche position with promise of leadership in proven Internet sectors. Information about Touchstone is available at touchstonesoftware.com.
"Safe Harbor" Statement under the Private Securities Litigation
Reform Act of 1995:
With the exception of historical information, the statements set forth above include forward-looking statements that involve risk and uncertainties. These statements include the Company's prospects for future growth and the shipment of PhoenixNet enabled computers. The Company cautions readers that a number of important factors could cause actual results to differ materially from those in the forward-looking statements. Those factors include the following: the uncertain performance, user adoption, and financial results from integrating products currently in development into existing technology; protection of the Company's intellectual property rights and risk of infringement claims against the Company's intellectual property; the size and timing of and fluctuations in end user demand for the products and services described above; the response of third parties, including those with significantly greater resources than Phoenix, to the contemplated business model; the fact that the Company's markets are characterized by rapidly-changing technology, evolving industry standards and frequent introductions of new products and enhancements, and the Company's ability to respond to such changes; difficulties which the Company may experience in completing the development of products, services and technologies called for in the contemplated business model; the highly competitive nature of the markets for the Company's products; the phase-out or early termination of the Phoenix's products on PC systems; the Company's ability to attract and retain skilled personnel; the difficulties associated with assimilating an acquisition, and the Company's reliance on certain third party suppliers. These and other factors which could cause actual results to differ materially from those in the forward-looking statements are also discussed in the Company's filings with the Securities and Exchange Commission, including its most recent filings on 10-Q, filed February 14, 2000, and form 10-K, filed December 22,1999.
Note to Editors: Phoenix Technologies and inSilicon are trademarks and Phoenix is a registered trademark of Phoenix Technologies. All other trademarks are the property of their respective owners.
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Contact:
Phoenix Technologies
Gary Gray, 408/570-1000
Gary_Gray@phoenix.com
or
Morgen-Walke Associates
Erica Mannion, 415/296-7383 (PTEC IR)
Peter DeLauzon, 415/296-7383 (Financial Media Relations)
or
Market Pathways
Shannon Squyres, 949/955-1860 (Touchstone IR)
stockquest@marketpathways.com
All Headlines
Additional Headlines
BW 03/08 06:33 Phoenix Technologies to Acquire eSupport.com
BW 03/08 06:32 TouchStone Software Corp. to Sell eSupport.com Subsidiary to Phoenix Technologies Ltd.
BW 02/28 09:01 TouchStone Software To Provide Essential BIOS Technology For New Sun Microsystems PC Co-Processing Card
BW 02/08 15:02 TouchStone Software Announces Release Of CheckIt 7.0 Factory Edition
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