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Technology Stocks : Racom Systems (RCOM) -- Ignore unavailable to you. Want to Upgrade?

To: Marty Lee who wrote (308)	9/12/1998 8:03:00 PM
From: Cyrus	Read Replies (1) \| Respond to of 468

(Applies to: RCOM TEK HON) Message to Shareholders from Racom's President/CEO DENVER (Sept. 11) BUSINESS WIRE -Sept. 11, 1998-- The following is a message from Racom's (NASDAQ:RCOM) President/CEO to its shareholders: Subject: Message from Racom's President/CEO Dear Shareholders, Now that I have been on board for 30 days, I would like to make some early observations about the state of the Company's operations, and then a bit of information about our activities in the near future. First of all, however, for those of you who are not familiar with my qualifications, please allow me to give you a bit of history about myself. My background consists of over 20 years of successful global experience in Sales, Marketing, Engineering, Manufacturing and Business Development. I have established and directed operations that have generated millions in revenue for several very well respected companies. Companies like Samsung, Sony, Storage Technology and Tektronix. Companies which, like Racom, offer client solutions supported by a dedicated, professional team of employees. I am extremely glad to have the opportunity to assist Racom as it seeks market acceptance of its products and, ultimately, profitability. Yes, Racom has had its share of slow growth and has faced numerous technical challenges in the past. The development of FRAM by Racom's semiconductor partners has gone slower than expected and is only now coming to fruition. Racom's successful implementation of Access Control Systems and Industrial Automation Solutions were originally hailed, but were not repeated at other customer sites. Communication of the company's progress to shareholders and the public at large was sporadic and infrequent. All of this is going to change. Fortunately, the company had already made the wise decision not to focus its strategy on indecisive market segments like the financial services sector. Although that industry segment shows promise for future growth, we do not believe it will develop at a pace consistent with other types of applications that are reporting success. Similarly, automated fare collection within the transit industry has also proven to be slow to develop into a dynamic market. Racom is now focusing on those industry segments that offer proven acceptance of smart card technology and where profitability is achievable. I have tasked our sales team to develop a network of reps and sales partners in order to extend the reach of our sales force. Secondly, we will be developing a variety of new marketing programs that will highlight the applications that we will be marketing beginning in Q4 of 1998. These activities are in line with our commitment to seek significant product revenues in addition to our licensing activities. Within our engineering operations, I have asked that second sources be developed for all of our critical components. As we work to get a consistent product revenue flow started, we are simultaneously developing a new business plan that will include a compatible, but new and more aggressive, product strategy. This plan will be the cornerstone of our future strategy and the tool we will use to obtain additional financing to fund the development of this new generation of products. We expect this plan to be completed during September. We believe Racom is poised for some very exciting times ahead. We will continue to pursue business in the industrial automation and access control markets. The RFID smart tag industrial automation system we installed at Honeywell, Inc. helps to automate its thermostat production lines. Their thermostat production line has achieved superior productivity and continues to operate with much less downtime and improved system reliability due to Racom's enhanced memory durability. At Tyco, a leading provider of printed circuit boards, using a Racom smart card system within their FastTrack automated assembly system has saved thousands of dollars in production hours and has granted them significant improvements in yield and quality. We will strive to leverage these success stories in our quest for future sales. Racom is now clearly focused on a new strategic mission: To be a recognized leader in automated transaction solutions for distributed network environments by providing high-value hardware, application software, and services. In addition to building a business plan that applies our knowledge and expertise with contactless smart card solutions, we are backing this with a solid marketing plan that will incorporate our strategies and tactics in ways to leverage this expertise and sustain our future growth. I am certain that in coming quarters, you will see various signs of a new invigorated Racom. Also, in spite of recent market weakness that has depressed Racom's stock, we are very optimistic that your patience in holding onto our stock will be rewarded. Every employee of Racom is now keenly aware that as far as priorities are concerned, shareholders always come first. We promise to keep your interests clearly in our sights. Thank you for your time and interest. Sincerely yours, (signed) Arthur B. Rancis President and CEO -0- aj/sf* dl/sf CONTACT: Racom Systems Inc. Michele Carpino, 303/773-7403 KEYWORD: COLORADO INDUSTRY KEYWORD: COMPUTERS/ELECTRONICS COMED Today's News On The Net - Business Wire's full file on the Internet with Hyperlinks to your home page. URL: businesswire.com