(Oslo, August 28, 2007) VMETRO ASA (OSE: VME) acquires US based Micro Memory LLC, a privately held company, for US$ 16.3 millions. The acquisition brings VMETRO closer to it US customers, the company`s biggest market, and it gives a more complete product portfolio. Micro Memory is a leading provider of critical embedded computing and network storage related products.
The acquisition provides VMETRO with a highly experienced, US-based engineering team with proven capabilities. The acquisition of Micro Memory fulfills VMETRO`s strategy on the following points:
o Increased capabilities. The acquisition gives VMETRO increased capabilities within the US defense and aerospace industry. Micro Memory`s US- based operations enable selling into programs where US Engineering and Manufacturing facilities are strongly favored, especially those programs that involve sensitive information subject to United States International Traffic in Arms Regulations (ITAR) which limit the involvement of non-US personnel.
o Complete portfolio. The acquisition improves VMETRO`s market position due to an extended and more complete product portfolio within critical embedded computing and memory/storage.
o Leverage on existing sales and marketing organization. With a stronger product portfolio VMETRO`s established sales and marketing infrastructure can be better utilized.
o Higher engineering efficiency. The acquisition enables VMETRO to develop and produce a broader and a more robust product portfolio with improved time-to-market. o New markets. The acquisition enables VMETRO to further diversify into new, previously untapped commercial markets through sales of Micro Memory`s Umem NVRAM cards. These products are currently utilized by leading Tier I/II OEMs to satisfy applications in the rapidly growing segments of Enterprise Network Storage. `The acquisition is a step in VMETROs important shift in product mix and reflects the company`s strong focus on Critical Embedded Computing and Recording /storage. I`m confident that the new organization will create value with improved market position and increased market share`, says Christian Jebsen, CEO of VMETRO ASA. `Both geographically and technologically we get closer to our customers in the US, which is our biggest market. We get a more complete product portfolio at a lower combined cost and we can better utilize our existing sales and marketing organization.`
In 2006 Micro Memory had total revenue of US$ 10.1m with an operating profit of US$ 1.9m. VMETRO will pay a total consideration of US$ 16.3m of which US$14.0 in cash and US$ 2.3m in VMETRO shares. The share price will equal the average share price the last ten trading days prior to this announcement.
Micro Memory was founded in 1976 and has 41 employees. The company`s headquarters is in Chatsworth, California. Key employees will stay with the company for a minimum period of three years. More on: www.micromemory.com
About Micro Memory:
Micro Memory is a leading provider of board-level products for Real Time Embedded Systems and Enterprise Network Storage. For embedded systems, the Company`s dense board designs are combined with robust, preconfigured FPGA IP to satisfy demanding signal processing applications for Mil/Aero Defense Primes and industry-leading OEMs. The Umem line of NVRAM products satisfies requirements for high performance, highly available random access storage for Tier I/II server and storage appliance providers.
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