| Releases for Year 2000 |
| 04-06-00
| ADC TO ACQUIRE CONTINENTAL ELECTRONICS CORPORATION'S TELEVISION TRANSMITTER OPERATIONS |
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| MINNEAPOLIS--(BUSINESS WIRE) - (April 6, 2000)
Acquisition Broadens ADC's Strength in Digital and Analog Television Products
ADC (Nasdaq: ADCT; www.adc.com) today announced the signing of an agreement to acquire the television broadcast assets of Continental Electronics Corporation (CEC), a subsidiary of Tech-Sym Corporation (NYSE:TSY) of Houston. Under the terms of the agreement, ADC will acquire all designs and rights to CEC's solid state television transmitters, digital television exciters and other intellectual properties relating to the television broadcast portion of the business. The deal is a cash transaction, which is expected to close in ADC's second fiscal quarter ended April 30, 2000.
Based in Dallas, with a design facility in Grass Valley, Calif., CEC offers some of the most advanced and innovative products available for digital television (DTV) broadcasting. CEC's all-digital exciter is capable of generating signals for today's analog NTSC (National Television Standards Committee) television format and, at the touch of a button, can be switched to provide an ATSC (Advanced Television Systems Committee) output for compatibility with DTV (digital television) requirements currently being implemented in the U.S. and abroad. The transaction will also include a full line of high-power, solid-state transmitters which will enhance ADC's already broad product line.
"ADC has become a respected leader in the television transmitter industry with product offerings ranging from five watts to 420 kilowatts," said Dave Neff, vice president of ADC's Broadcast Systems Division. "By integrating the advanced adaptive digital correction capability of the CEC ATSC/NTSC modulator into our current product line and adding CEC's high-power solid-state transmitters to our lineup, ADC is poised to meet the steadily growing demand for television transmitter products. With worldwide DTV implementation on the horizon, this acquisition, in conjunction with the recent ADC acquisitions of Pathway and NVISION,this agreement demonstrates ADC's continued commitment to the television broadcast industry."
"This agreement is part of Tech-Sym's announced plan to seek a merger partner for CEC," said David Burkey, president of CEC. "We believe ADC is in the best position to capitalize on the technology we've developed and to provide quality service and support for our existing customer base." "ADC's strong presence in the broadcast industry provides us with the opportunity to grow sales at a significantly higher rate than we could in the past," said Dan Dickey, vice president of engineering for CEC. "Our complementary products and designs make ADC and CEC a natural fit, allowing the combined organization to provide an extremely strong offering to meet all television broadcasters' digital and analog needs."
About Continental Electronics Corporation
A global leader in broadcast transmitter equipment, CEC, a subsidiary of Tech-Sym Corporation, provides a full range of products for broadcasting applications. Founded in 1946, Dallas-based CEC is the foremost supplier of advanced RF transmission technology and the world's most experienced designer and builder of high-power broadcast equipment. CEC's products are used in more than 100 countries around the world. For more information about CEC, visit the company's Web site at www.contelec.com or call 1-800-733-5011.
About ADC
ADC Telecommunications, Inc. is a leading global supplier of network equipment, software and integration services for broadband, multiservice networks that deliver data, video and voice communications over telephone, cable television, Internet, broadcast, wireless and enterprise networks. ADC's broadband, multiservice network solutions enable local access, high-speed transmission and software management of communications services from service providers to consumers and businesses over fiber-optic, copper, coaxial and wireless media. Headquartered in Minneapolis, Minnesota, ADC has approximately 14,400 employees around the world and annual sales of $2.1 billion. ADC's stock is included in the Standard and Poor's 500 Index and the Nasdaq-100 Index. For additional information, visit our Web site at www.adc.com.
Cautionary statement under the Private Securities Litigation Reform Act of 1995
Any forward-looking statements contained herein reflect management's current expectations or beliefs. ADC Telecommunications cautions readers that future actual results could differ materially from those in forward-looking statements depending on the outcome of certain factors, including the risks and uncertainties identified in Exhibit 99 to ADC's Report on Form 10-Q for the fiscal quarter ended April 30, 1999. |
