Zomax Closes on Joint Venture in Ireland
02 August 2006 - 12:44AM
PR Newswire (US)
Joint Venture with MPO International Consolidates Companies'
Ireland Manufacturing Operations MINNEAPOLIS, Aug. 1, 2006
/PRNewswire-FirstCall/ -- Zomax Incorporated (NASDAQ:ZOMX) today
announced that it has closed on its previously announced joint
venture with MPO International (MPO), a privately-held leader in
the media manufacturing and supply chain services industry. Through
the joint venture, the two companies have consolidated their
separate Ireland media replication businesses, manufacturing
operations and management teams into one entity. The new joint
venture officially began operations on August 1 as Zomax/MPO
Ireland Limited. "We are very pleased that we have successfully
closed on our joint venture with MPO and believe we have created a
profitable entity that can service the existing needs of both our
and MPO's customers," said Anthony Angelini, president and CEO of
Zomax. "In addition, we have entered into a strategic sales and
marketing agreement with MPO that will allow us to jointly pursue
the IT market segment in Europe and leverage MPO's European
manufacturing and distribution infrastructure as a means to more
broadly service our customers. We look forward to the future
success of Zomax/MPO Ireland Limited." "We believe that partnering
with Zomax and combining our resources to form this joint venture
will result in a media manufacturing operation in Ireland that is
strong and profitable," said Loic de Poix, president and CEO of MPO
International. "We are excited to continue the development of the
relationship with Zomax and believe we can successfully create a
profitable entity in Ireland and develop future opportunities
through our strategic sales and marketing agreement." Patrick
(Paddy) Burke, currently managing director of Zomax operations in
Ireland, has been named chief executive officer of Zomax/MPO
Ireland Limited. Mr. Burke has significant industry experience and
has been responsible for leading the Zomax Ireland operations back
to profitability. The newly formed joint venture was created to
profitably support the existing media manufacturing needs of both
Zomax Limited's and MPO Ireland's clients. Under the new sales and
marketing agreement Zomax and MPO plan to pursue new growth
opportunities in Europe. One of the strategic opportunities that
the companies are pursuing is leveraging Zomax's reputation as a
best-in-class supply chain company and MPO's European production
and fulfillment capabilities to create new customer opportunities
in the European IT market segment. The companies will also look to
develop opportunities to utilize Zomax' contact center operations
and subscription management capabilities in Ireland for new revenue
opportunities with MPO's strong base of entertainment customers.
Under the terms of the definitive joint venture agreement between
MPO and Zomax, Zomax owns 51% of Zomax/MPO Ireland Limited and MPO
owns the remaining 49%. Each company has contributed an undisclosed
level of manufacturing assets, inventory and cash to the joint
venture. Zomax is providing the general, financial and human
resource management leadership for the joint venture and MPO will
assist the joint venture in sales, business development and
technical support activities. About Zomax Zomax helps companies
more efficiently bring their products and content to market
worldwide. Our comprehensive program management approach helps
companies develop, manage and improve their rapidly changing
product and program supply chains. Zomax' solutions leverage a
modular suite of supply chain services that include project
management, data management, customer contact and e-commerce
services, sourcing management, CD/DVD production, assembly and
kitting services, JIT physical and electronic fulfillment and
returns management. Founded in 1993, Zomax currently operates 8
facilities across the United States, Canada, Mexico and Ireland.
For more information on Zomax, visit http://www.zomax.com/ or call
(866) 553-9393. About MPO International MPO International is an
independent business focused primarily on pre-recorded media and
stocking solutions for the home entertainment industry. MPO is one
of the Media Industry's pioneers. With 1,500 employees in Europe
and Asia, 6 production sites and Fiege/MPO, a recent joint venture
with a European leader in logistics activities to provide
distribution services for their customers, the MPO group is the
independent leader in pre-recorded media and stocking solutions. It
is headquartered in Averton, France.
http://www.mpointernational.com/ Forward-Looking Statements Certain
statements contained in this press release are "forward-looking
statements" within the meaning of the Private Securities Litigation
Reform Act of 1995. Such forward-looking statements relate to our
expectations of future performance and events including the
financial impact of the Ireland joint venture and our ability to
execute on our plans for the Ireland joint venture related to
integration and market opportunities. These forward-looking
statements involve known and unknown risks, uncertainties and other
factors that may cause actual results, performance or achievements
to be materially different from the results, performance or
achievements expressed or implied by the forward-looking
statements. We caution that any forward looking statements made by
us in this release or in other announcements made by us are
qualified by important factors that could cause actual results to
differ materially from those in the forward-looking statements.
These factors include, without limitation, our ability to execute
on the joint venture; the changes and volatility in the personal
computer hardware and software industry in Europe, particularly
with respect to the demand for CD and DVD media, from which a
significant portion of our Ireland revenues are derived;
macroeconomic factors that influence the demand for personal
computer hardware and software and the resulting demand for the
products and services offered through our Ireland operations;
consolidation among our customers or competitors, which could cause
disruption in our customer relationships or displacement of us as a
services provider to one or more customers; our ability to make the
proper strategic choices with respect to pursuing profitable growth
in our European business; increased competition within our industry
and increased pricing pressure from our customers; our dependence
on relatively few customers for a majority of our revenues; the
future success of the sales and marketing agreement to develop new
opportunities; fluctuations in our operating results from
quarter-to-quarter, which are influenced by many factors outside of
our control, including variations in the demand for particular
services we offer or the content included in the products we
produce for our customers; the volatility of polycarbonate prices;
and other risks and uncertainties, including those identified and
discussed in detail under the caption "Risks and Uncertainties" in
Item 1A of our 2005 Form 10-K. We undertake no obligation to update
or revise any forward looking statements we make in this release
due to new information or future events. Investors are advised to
consult any further disclosures we make on this subject in our
filings with the Securities and Exchange Commission, especially on
Forms 10-K, 10-Q and 8- K, in which we discuss in more detail
various important factors that could cause actual results to differ
from expected or historical results. DATASOURCE: Zomax Incorporated
CONTACT: Anthony Angelini, President and CEO, or Dick Barnes, EVP
and CFO, both of Zomax Incorporated, +1-763-553-9300; or Louis de
Bellegarde, CFO, +33-1-41-10-51-65, or Alban Pingeot, VP
Development, +33-1-41-10-58, both of MPO International; or
Investor/Media, Douglas Sherk or Jennifer Beugelmans,
+1-415-896-6820, or Steve DiMattia, +1-646-277-8706, all of EVC
Group, Inc. Web site: http://www.zomax.com/
http://www.mpointernational.com/
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