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Technology Stocks : Eiger Technology (OTC-BB ETIFF) -- Ignore unavailable to you. Want to Upgrade?

To: Joe Krupa who wrote (62)	2/14/2001 2:00:14 PM
From: Dan Hamilton	Respond to of 67

Eiger also apparently has 70 cents per share in cash. So hopefully buying in the 70 - 90 cent range should be well rewarded a year from now...

To: Joe Krupa who wrote (62)	2/20/2001 4:59:57 PM
From: Dan Hamilton	Read Replies (1) \| Respond to of 67

Yikes, another deal to ponder. 7.2 million shares = roughly $9.36 million for 55% of a company with $1.5 million in operating profit. So they buy $825,000 in operating profit for $9.36 million in wampum. About 11 times earning multiple. Not outrageous I guess. 55% of STA, 31.25% of Nixxo, new branding strategy (what does this mean for OEM deals?). Where the ?@@X!! are the DSL modems?? My head hurts. Eiger Technology, Inc. Acquires Standard Telecom America 09:25 GMT-05:00 Tuesday, February 20, 2001 Eiger Technology, Inc. (Eiger), a vendor of computer products and peripherals sold through OEM customers, today announced that it has signed a memorandum of understanding to acquire a 55% controlling interest in Standard Telecom America (STA) from Standard Telecom Co. of Korea (STC) for 7.2 million shares of Eiger. This acquisition is expected to close on March 8, 2001, subject to Eiger's due diligence and approval from applicable regulatory authorities. STA is a California based company that focuses on North American distribution of wireless communication devices under the popular "Nixxo" brand name. The acquisition of STA represents additional revenue and operating earnings of CDN $50 million and $1.5 million per year respectively to Eiger. Through the acquisition of STA, Eiger has demonstrated its' ability to enhance shareholder value by both growing and diversifying its' revenue and earnings base despite an overall slowdown in the PC industry. In addition to increased sales and earnings, this acquisition has several benefits to Eiger: 1. The marketing and sales team of STA has positioned its Nixxo pager as Number 2 in the North American marketplace, establishing brand name recognition. 2. Eiger will capitalize on this brand-name recognition by re-branding the product as "Nixxo by Eiger Technology", thereby establishing the "Eiger" brand name in North America. 3. STA will expand its North American product line to include other potential products such as cellular telephones, MP3 players, and cellular telephones bundled with other features such as MP3 and speakerphone, all branded "Nixxo by Eiger Technology". 4. Eiger will obtain manufacturing contracts from STC relating to the production of cellular telephones and bundled product and have the possibility of garnering other OEM cellular telephone manufacturing business. Eiger The acquisition of STA, along with the previously announced acquisition of Nixxo Technologies Inc. (NTI), expand Eiger's manufacturing base from computer products and peripherals such as modems and MP3 players to include wireless communication products such as CDMA and GSM cellular telephones. Eiger will also be at the forefront of R&D aimed at integrating wireless communication technology with other electronic appliances such as MP3, PDA and POS. Lastly, these acquisitions leverage Eiger's OEM manufacturing base into manufacturing and North American distribution of branded products. Eiger also announced today that due to a weakening overall equity market, Eiger and STC have waived the condition relating to financing and listing NTI on a national stock exchange as a condition of Eiger's purchase of a 25% interest in NTI. In a soft equity market, the pricing necessary to complete a financing for NTI in the public markets would not maximize shareholder value. Instead, STC and Eiger have agreed to jointly fund the operations of NTI. In addition, Eiger is converting its' existing U.S. $2.5 million loan to NTI into equity, thereby increasing its' interest in NTI to 31.25%. Eiger and STC will list NTI on a national stock exchange when equity markets and the growth of NTI will result in a more favorable valuation of NTI for Eiger's shareholders. Lastly, Eiger plans to issue its audited financial statements for the year ended September 30, 2000 on February 23, 2001, originally due for filing on February 16, 2001. Eiger Technology Inc. is headquartered in Toronto, Ontario. Through its facilities in South Korea, New Jersey and California, Eiger manufactures and distributes electronic and computer peripherals such as 56K fax/modems, MP3 players and DSL modems to OEM and consumer markets worldwide. Eiger is a publicly traded company listed on the Toronto Stock Exchange (symbol: AXA). Visit Eiger Technology Inc.'s web site at www.eigertechnology.com.