Steve NEWS
Monday November 24, 8:32 am Eastern Time
Company Press Release
Nexar Technologies Signs Multi-Million Dollar Private Label Agreement with Image IQ
Southeastern Systems Integrator Intends To Purchase up to 30,000 XPA Systems in 1998; Nexar's "Future Ready" XPA PC Chosen As Cornerstone of Image IQ's TCO Solution
SOUTHBOROUGH, Mass.--(BUSINESS WIRE)--Nov. 24, 1997-- Further validating the benefits of its highly differentiated upgradable PC design, Nexar Technologies, Inc. (Nasdaq:NEXR - news), announced that Image IQ, a systems integrator headquartered in Lake Charles, Louisiana, has selected Nexar to be the primary supplier for its private brand PCs. Under the agreement, Image IQ committed to purchase up to 30,000 Nexar base systems in 1998 with a potential value in excess of $20 million, in order to retain selected distribution rights. In exchange for this commitment, Image IQ has certain exclusive territorial rights to market and distribute PCs based on Nexar's XPA (Cross Processor Architecture) technology as a private label brand to consumer and commercial customers.
''Our agreement with Nexar significantly increases Image IQ's competitive advantage by enabling us to offer the most compelling, flexible, and cost-effective PC in the industry while helping our customers to significantly reduce computing costs in the long term,'' said Gregory Montelaro, chief executive officer, Image IQ. ''We believe that the future-ready design of the XPA PC makes it the industry's only PC that will enable our customers to stay current with the rapid changes in technology, while simultaneously reducing their PC ownership costs.''
''Nexar's strategic partnership with Image IQ dovetails with our strategy to expand our reseller and Original Equipment Manufacturer (OEM) channels throughout the United States,'' said Albert J. Agbay, chairman and chief executive officer, Nexar Technologies, Inc. ''Image IQ's choice of XPA for its private brand PC demonstrates XPA's ability to provide our resellers with a truly differentiated PC design that reduces users' total cost of ownership through a measurable long term value.''
Beginning in December, Image IQ will offer XPA systems as its own private label brand. Each system will be built according to individual customer specifications, depending upon their requirements for hard drive, processor, memory, cache, video card and modem.
This deal comes on the heels of Nexar's recently announced Strategic Technology Provider Agreement with Computer City, one of the largest computer superstores in North America, that designates Nexar as the primary supplier of Computer City's Configure-to-Order PCs.
About Nexar XPA
XPA is a family of minitower systems that deliver unprecedented upgradability of all major system components and support for the industry's broadest range of microprocessors -- Intel's Pentium, Pentium Pro, Pentium II and Dual Pentium II -- all in a single system.
Designed to support future generation technologies, XPA systems enable Nexar's customers to battle the ongoing personal computer obsolescence problem by providing a significant increase in the lifecycle of their PC.
Targeted at medium to large businesses and government markets, the highly flexible XPA PC allows VARs and end-users to easily configure and upgrade their systems based on their specific computing requirements for processor, memory, cache and hard drive. This is accomplished through the XPA PC's highly innovative split motherboard design and easy access chassis, which allow for easy upgrades both within processor families and across multiple processor platforms. This gives resellers thousands of configuration options and unmatched scalability.
Nexar recently announced that the U.S. Patent Office issued a patent covering the architecture technology that is the foundation of Nexar's products. These products combat obsolescence and protect users' PC investments through simple and cost-effective upgrades.
About Image IQ
Image IQ, a systems integrator located in Lake Charles, Louisiana, is quickly moving forward with expansion plans that place 15 regional sales offices across the southeastern United States.
About Nexar
Nexar Technologies, Inc. (Nasdaq:NEXR - news) manufactures and markets a new category of high-quality personal computer systems that offer consumer and business users the industry's highest level of flexibility and investment protection through complete customization and upgradability. Headquartered in Southborough, Mass., Nexar sells its systems through national and regional value-added resellers (VARs), distributors and system integrators.
Statements in this release which express the beliefs and expectations of the Company regarding its future results or performance are forward-looking statements that involve a number of risks and uncertainties. The Company's actual results could differ significantly from the results discussed in such forward-looking statements. Factors that could cause or contribute to such differences include those discussed in the Company's SEC filings, including its Prospectus dated April 8, 1997, and its Form 10-Q, filed on November 13, 1997, which factors include, among others, (a) intense competition, (b) dependence on substantial customers, (c) uncertainty of market acceptance of the Company's products, (d) dependence on third party resellers and distributors, (e) risks associated with international expansion, (f) risks associated with rapid growth, and (g) reliance on suppliers. The company undertakes no obligation to update any such forward-looking statements to reflect events or circumstances after the date hereof, or to reflect the occurrence of unanticipated events.
Nexar news releases are available through Nexar's web site at www.nexarpc.com
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Contact:
Nexar Technologies, Inc.
Craig Conrad
508/485-7900 ext. 233
or
Copithorne & Bellows
Sara Buda/Tim Hurley
617/450-4300
or
Image IQ
Joshua Seidenberg
318/439-6500 |
