Lumenis Announces Agreement to Outsource Operations at Pleasanton Site
07 January 2004 - 7:00PM
PR Newswire (US)
Lumenis Announces Agreement to Outsource Operations at Pleasanton
Site YOKNEAM, Israel, Jan. 7 /PRNewswire-FirstCall/ -- Lumenis Ltd.
announced today that it had reached an agreement with RH
Technologies Ltd. to outsource its manufacturing and service
operations at its Pleasanton, CA site. Currently Lumenis' landmark
Lightsheer System for hair removal with over 2,000 systems
installed worldwide, and the Relume and B-Clear Systems for
aesthetic and medical-aesthetic applications, are being
manufactured in Pleasanton. This agreement is one of the milestones
of the Company's Turnaround Plan, whereby Lumenis intends to close
sites and reduce costs. The Company expects to save approximately
$5 million over the next four years as a result of this agreement.
The Research and Development and Marketing activities previously
based in Pleasanton will be transferred to the Company's offices in
Santa Clara, CA. Avner Raz, President and Chief Executive Officer,
commented: "RH has a proven track record in running manufacturing
operations for medical devices and other high tech products. This
new agreement will allow us to reduce costs while maintaining the
expertise and highest standards developed over the years in
Pleasanton, and at the same time providing continuation of
employment for our employees." RH Technologies Ltd. is a public
company traded at TASE (Tel Aviv Stock Exchange), and is considered
to be the largest contract manufacturer in Israel. RH will operate
at the existing site in Pleasanton, and will supply Lumenis with
products and the related parts and service. The agreement is for an
initial term of four years and covers approximately 45 employees
who will be transferred to RH. RH will also purchase certain
inventory from Lumenis. The transaction is expected to close next
week. About Lumenis Lumenis develops, manufactures, and markets
state-of-the-art proprietary laser and intense pulsed light
devices. Its systems are used in a variety of aesthetic,
ophthalmic, surgical and dental applications, including skin
treatments, hair removal, non-invasive treatment of vascular
lesions and pigmented lesions, acne, psoriasis, ENT, gynecology,
urinary lithotripsy, benign prostatic hyperplasia, open angle
glaucoma, diabetic retinopathy, secondary cataracts, age-related
macular degeneration, vision correction, neurosurgery, dentistry
and veterinary. For more information about the Company and its
products log on to http://www.lumenis.com/ The statements in this
press release that are not historical facts are forward-looking
statements, which are subject to risks and uncertainties. The
Company's actual results could differ materially from those
anticipated in the forward looking statements based on a variety of
factors, including, among others: uncertainties with respect to
market acceptance of the Company's products, obtaining regulatory
approvals for new products or for the sale of existing products in
new markets and enforcement of intellectual property rights; risks
associated with competition and competitive pricing pressures,
economic conditions generally, the Company's international
operations and the Company's ability to integrate its operations
with those of acquired businesses; the outcome of the Securities
and Exchange Commission investigation and several securities class
action lawsuits to which the Company is subject; uncertainties
relating to the Company's continuing liquidity; and other risks
detailed from time to time in the reports filed by Lumenis with the
SEC, including its annual report on Form 10-K and quarterly reports
on Form 10-Q. Contacts: Kevin Morano CFO 212-515-4187 DATASOURCE:
Lumenis Ltd. CONTACT: Kevin Morano, CFO of Lumenis Ltd.,
+1-212-515-4187 Web site: http://www.lumenis.com/
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