Scitex Vision Completes the Sale of its Business to HP
02 November 2005 - 2:28AM
PR Newswire (US)
TEL AVIV, Israel, November 1 /PRNewswire-FirstCall/ -- Scitex
Corporation Ltd. (Nasdaq & TASE: SCIX) announced today the
closing of the previously announced sale of the business of Scitex
Vision Ltd. (Scitex Vision), a majority-owned subsidiary of Scitex
and a market leader in wide and super-wide format printers for
industrial applications, to Hewlett-Packard Company (HP)
(NYSE:HPQNASDAQ:HPQ). Under the terms of the agreement, HP paid
approximately $230 million in cash to Scitex Vision, of which $24
million will be retained in escrow for 24 months to cover possible
indemnification claims and an additional approximately $27 million
will be utilized to repay Scitex Vision's retained liabilities,
mainly to Israeli banks. In addition, Scitex Corporation has agreed
to license its rights to the "Scitex" tradename to HP, and will,
subject to shareholder approval, change its corporate name. Scitex
Corporation shares trade on Nasdaq and The Tel Aviv Stock Exchange
under the symbol "SCIX". Forward Looking Statements Except for the
historical information herein, the matters discussed in this news
release include forward-looking statements within the meaning of
the "safe harbor" provisions of the U.S. Private Securities
Litigation Reform Act of 1995. Forward-looking statements that are
based on various assumptions (some of which are beyond the
Company's control) may be identified by the use of forward-looking
terminology, such as "may", "can be", "will", "expects",
"anticipates", "intends", "believes", "projects", "potential", "are
optimistic", "view" and similar words and phrases. Actual results
could differ materially from those set forth in forward-looking
statements due to a variety of factors, including, but not limited
to, (1) our absence of significant operations following the sale of
the business of Scitex Vision and uncertainty as to our future
business model and our ability to identify and evaluate suitable
business opportunities, (2) the fact that our U.S. shareholders may
suffer adverse tax consequences if we are classified as a passive
foreign investment company or PFIC, (3) risks in product and
technology development, (4) market acceptance of new products and
continuing product demand, (5) the impact of competitive products
and pricing, (6) changes in domestic and foreign economic and
market conditions, (7) timely development and release of new
products by strategic suppliers, (8) the impact of the Company's
accounting policies, (9) risks relating to pursuing strategic
alternatives, (10) the risks and uncertainty of outcome of
shareholder litigation, (11) risks and uncertainties associated
with the tax and accounting consequences of the sale of the
business of Scitex Vision, (12) risks and uncertainties relating to
the Company's plans for its financial assets following the sale of
Scitex Vision, and (13) the other risk factors detailed in the
Company's most recent annual report and other filings with the US
Securities and Exchange Commission, including without limitation,
those set forth under such headings as "Risk Factors" and "Trend
Information" in the Company's Annual Report on Form 20-F. Except as
may be required by law, the Company does not undertake, and
specifically disclaims, any obligation to publicly release the
results of any revisions which may be made to any forward-looking
statements to reflect the occurrence of anticipated or
unanticipated events or circumstances after the date of such
forward-looking statements. Contact Scitex Corporation Ltd. Yahel
Shachar Chief Financial Officer Tel: +972-3-607-5855 Fax:
+972-3-607-5884 E-mail: DATASOURCE: Scitex Corporation Ltd CONTACT:
Contact: Scitex Corporation Ltd., Yahel Shachar, Chief Financial
Officer, Tel: +972-3-607-5855, Fax: +972-3-607-5884, E-mail:
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