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Technology Stocks : FLSH - M-FLASH SYSTEMS DISK PIONEERS -- Ignore unavailable to you. Want to Upgrade?

To: Jack of All Trades who wrote (334)	1/28/1998 3:09:00 PM
From: burt l seifman	Read Replies (2) \| Respond to of 923

Whole story. with m-systems I don't know if this is good or bad. The fact that they are focusing is good. The effect on P&L I don't know, nor whether it is an excuse for another couple of bad quarters. Perhaps others can interpret better. TEL AVIV (Dow Jones)--M-Systems Flash Disk Pioneers Ltd. (FLSHF) intends to restructure its interests in Taiwan, separating its core business - data storage using Flash memory - from other, non-core businesses. In a press release Wednesday, M-Systems said it signed a letter of intent with certain former shareholders of C-One Technology Corp., its Taiwan unit. C-One will transfer its Flash-related technology and business to M-Systems Asia Ltd., a newly incorporated Taiwanese company owned by M-Systems. C-One will then focus on the non-Flash business. The company expects the restructuring to be completed by March 31. M-Systems will allow its equity interest in C-One to be diluted down to 19.9% or less by new investors in C-One (which may include prior C-One shareholders). If, by March 31, the amount raised isn't enough to reduce M-Systems ownership in C-One to 19.9%, M-Systems may exchange the C-One shares it owns in excess of 19.9% for shares of M-Systems. The exchange rate would be 1 C-One share for 0.11 M-Systems share. Also, during the year beginning on the second anniversary of the restructuring, M-Systems may exchange all of its remaining C-One shares for M-Systems shares at the same exchange rate. If M-Systems exercised its 'put' options in full and exchange all its C-One shares for M-Systems shares, it would receive a total of 788,700 M-Systems shares. All 788,700 M-Systems shares are being held in escrow. (MORE) DOW JONES NEWS 01-28-98 11:39 AM -- 11 39 AM EST 01-28-98 :TICKER: FLSHF :SUBJECT: ISRL TAIW COMP MNA M-Systems/Divest -3: M-Systems Bought C-One In 1st Half '97 Dow Jones News Service via Dow Jones M-Systems Flash Disk Pioneers Ltd. (FLSHF) acquired C-One and its Pretec Electronics Corp. U.S. unit, in the first half of 1997 for 1.1 million new M-Systems shares and $1 million cash. At the time of the acquisition, C-One was completing the development of advanced ATA Flash cards and compact Flash cartridges. In July 1997, M-Systems unveiled the ATA Flash PC Card 2000 and the Compact 2000 Flash Disk. C-One also has an active non-Flash business. Since the acquisition, M-Systems has sought to divest the non-Flash business segment. M-Systems said Wednesday's agreement will intensify its focus on its core Flash business while allowing it to realize a return on the effective disposition of its non-Flash business. M-Systems Flash Disk Pioneers Ltd. (FLSHF) develops, manufactures and markets software and hardware data storage systems based on Flash memory.