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Technology Stocks : Eshed Robotec (ROBO) - a New Star is Born -- Ignore unavailable to you. Want to Upgrade?

To: David Israel-Rosen who wrote (108)	5/31/2000 9:54:00 AM
From: John T. Hardee	Read Replies (1) \| Respond to of 113

Wednesday May 31, 8:31 am Eastern Time Company Press Release SOURCE: Eshed Robotec (1982) Ltd. Eshed Robotec Reports Improved First Quarter Results ROSH HA'AYIN, Israel, May 31 /PRNewswire/ -- Eshed Robotec (1982) Ltd. (Nasdaq: ROBO - news), today reported first quarter 2000 net income of $25,000 compared with a loss of $515,000 for the first quarter of last year. Co-Managing Director Noam Kra-oz said the first quarter historically is the Company's weakest. First quarter operating income came to $35,000, bouncing back from a loss of $527,000 for first quarter of 1999. Quarterly revenues from sales and services were $2.7 million, a decline of 6.4 percent from revenues of $2.9 million for first quarter 1999. Despite the drop in revenues, the Company's gross profit rose to $1.2 million from $943,000. Mr. Kra-oz said the growth in gross income was due primarily to changes in the product mix. Mr. Kra-oz announced that in accordance with the Year 2000 Business Plan of Eshed Robotec's jointly owned subsidiary, Yaskawa Eshed Technology (YET), Yaskawa Electric Corporation (YEC), the joint owner of YET, has committed to order $10.0 million of motion control drivers and robot controllers. ``This is expected to generate income of approximately $1.5 million to $1.7 million for Eshed Robotec during the current year,'' Mr. Kra-oz said. Beginning April 1, Eshed Robotec's new organizational structure became operational. The Company now operates as three independent business sectors. The first of these sectors is headed by the Company's three co-Managing Directors, and is focused on new high-tech ventures and investments. One of these ventures is its subsidiary, MemCall, which is developing an innovative technology that, if proven successful, may significantly reduce search and retrieval time for data from Internet and network servers, databases and search engines. The sector's other principal focus currently is SwapStation, a start-up with a portal dedicated to swapping items on the Internet. The second business sector is YET, a joint venture company with Yaskawa Electric Corporation. YET's charter is to develop and manufacture motion control AC motor drivers and robot controllers for the industrial market. The third business sector incorporates Eshed Robotec's traditional fields of activity in automated manufacturing technology, training and education. Eshed Robotec is considered a world-leader in this market; the Company's products are sold worldwide. Eshed Robotec currently is completing the process of leasing unused space in its headquarters building in Rosh Ha'ayin. Lynx Photonics Networks Ltd. moved into offices in the building in January. Siemens Israel, which rented approximately 1400 square meters, moved into its space during May. Mr. Kra-oz said another high tech company is expected to move in the building during the coming months.