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Microcap & Penny Stocks : Videolabs Inc (VLAB): A turnaround? -- Ignore unavailable to you. Want to Upgrade?

To: GARY P GROBBEL who wrote (37)	4/27/1999 9:59:00 AM
From: GARY P GROBBEL	Read Replies (1) \| Respond to of 56

I like this...we are growing in multiple directions...see last earnings release...stock around 1 3/16 this am: (CAP MKTS) DJC: VideoLabs Acquisition -3: In A Cash, Stock Purchase DJC: VideoLabs Acquisition -3: In A Cash, Stock Purchase VideoLabs said Acoustic Communications' electronic commerce site is designed to compete in the hardware segment of collaborative tools market. VideoLabs said the acquisition will allow it to use its "strong balance sheet through a cash and stock purchase and the utilization of existing tax loss carry forward credits." The company expects to sign the definitive agreement in early May and has postponed it shareholders meeting as the acquisition requires shareholder approval. A spokesman for VideoLabns said the combined company would provide services, hardware and combined hardware and software products. VideoLabs provides image capture transmission and manipulation for professionals in education, audio-visual, identification and medical markets. (END) Dow Jones Newswires 04-27-99 0953EDT * end of story * (BSNS WIRE) VideoLabs to Purchase Acoustic Communication Systems VideoLabs to Purchase Acoustic Communication Systems Business Editors MINNEAPOLIS--(BUSINESS WIRE)--April 27, 1999--VideoLabs, Inc. (NASDAQ: VLAB) announced today that it has signed a letter of intent to merge with Acoustic Communication Systems, Inc., a privately held company headquartered in Plymouth, Minnesota. Acoustic Communication Systems, with past annual sales in excess of $10 million, is the leading independent provider of collaboration solutions involving data and video conferencing in the Midwest and one of the largest value-added resellers of PictureTel and Polycom(R) equipment in the country. Acoustic Communication Systems manufacturers several peripheral devices such as carts, speakers, furniture and microphones for visual communication solutions. Acoustic Communication Systems recently launched an e-commerce site, www.meetingroomtools.com, to compete in the $1 billion collaborative tools (hardware only) market. Chairman and CEO of VideoLabs, James Hansen said, "We are excited by the potential of the integration of the strengths of the two firms to exploit the growth in the collaboration industry. Hardware sales in videoconferencing grew by 15% annually from 1993 to 1997, but increased by 40% in 1998 as transmission costs decreased and performance improved. This growth was derived primarily from organizations' emphasis on reducing project cycle times and improving communications. Industry analysts predict that significant growth lies ahead as standards allow cross organization communications." Rob Sheeley, President of Acoustic Communication Systems said, "This purchase positions the combined entity as a provider of services, hardware peripherals and solutions through multiple channels to serve the expected market growth according to industry analysts. I anticipate that the next several years will have other mid-size value-added resellers and small manufacturers seeking strategic partnerships with firms like ours in order to efficiently reach the target customers." Hansen continued, "The purchase will also allow us to utilize our strong balance sheet through a cash and stock purchase and the utilization of existing tax loss carry forward credits. The definitive agreement will be signed in early May, thus we have postponed our annual meeting as the acquisition requires shareholder approval." About VideoLabs, Inc. VideoLabs, Inc. (NASDAQ: VLAB), is a publicly traded provider of image capture transmission and manipulation based solutions for professionals in education, audio-visual, identification and medical markets. The company is located at 5960 Golden Hills Drive, Golden Valley, MN 55416 and can be reached at 612-542-0061 or by fax at 612-542-0069. Internet address is www.videolabs.com. Certain matters discussed in the press release are forward looking statements made under the safe harbor provisions of the Private Securities Litigation Reform Act of 1995, including the Company's expectations regarding 1999 profit, the timing of the new product introductions and the expectation of lowered costs of materials. All forward-looking statements involve risks and uncertainties. In addition to the factors discussed above, other factors could cause actual results to differ materially from those described, including market acceptance of existing and new products; the receipt or cancellation of orders and timing of the Company's ability to recognize revenue from those orders; the timely development and market introduction of new products; the growth and timing of new applications; the successful expansion of distribution channels; changes in general economic conditions; cost and availability of components; and fluctuations in foreign exchange rates. In addition, the markets for the Company's products are characterized by significant competition, and the Company's results may be adversely affected by the actions of existing and future competitors, including the development of new technologies, the introduction of new products, and the reduction of prices by such competitors to gain or retain market share. --30--cr/ms* CONTACT: VideoLabs, Minneapolis James Hansen, President & CEO 612-542-0061 ext. 224 jhansen@videolabs.com KEYWORD: MINNESOTA INDUSTRY KEYWORD: COMED COMPUTERS/ELECTRONICS MEDICINE EDUCATION Today's News On The Net - Business Wire's full file on the Internet with Hyperlinks to your home page. URL: businesswire.com * end of story *