[CHECK TECHNOLOGY CORPORATION LETTERHEAD]
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FOR IMMEDIATE RELEASE
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NEWS RELEASE
EXHIBIT 99.0
CHECK TECHNOLOGY ANNOUNCES AGREEMENT TO
ACQUIRE DELPHAX SYSTEMS FROM XEROX
TRANSACTION WILL PROVIDE OWNERSHIP OF KEY TECHNOLOGY AND ENTRY TO NEW MARKETS
MINNEAPOLIS, DECEMBER 3, 2001 -- Check Technology Corporation (Nasdaq:CTCQ),
announced today that it has signed a definitive purchase agreement with Xerox
Corporation (NYSE:XRX) to acquire the North American assets of Delphax Systems,
a Xerox company, in a cash transaction. Specific financial terms will be
disclosed at closing, which is expected in late December. Located in Toronto,
Ontario, Delphax employs more than 200 people in the development, manufacture
and distribution of print engines, print management software and a range of
digital printing systems incorporating the company's proprietary electron-beam
imaging technology. Delphax supplies the sophisticated high-speed Gemini print
engine that drives Check Technology's flagship product, the Imaggia(R) advanced
digital document production system.
In addition to giving Check Technology ownership of its core print engine
technology and associated expertise, the acquisition is expected to add, after
eliminations, approximately $30 million to the company's fiscal 2002 revenues
and over $3.0 million in earnings before interest, taxes and depreciation.
"This is a most significant event in our company's history," said Xxx Xxxxxx,
Check Technology's chairman and chief executive officer. "It not only
strengthens our position in our served markets, but it represents a giant step
in implementing our strategic plan for increasing our opportunities for market
penetration beyond the check and financial document segment and enlarging our
revenue base.
"A major element of our business plan is to increase our installed equipment
base and generate a steady and growing stream of service revenue that, over
time, will far outweigh revenue from the sale of equipment itself. The
combination with Delphax will move us much closer to that objective, while
fundamentally strengthening our position as a global provider of digital imaging
solutions for specialized printing and publishing."
Minneapolis-based Check Technology has approximately 225 employees worldwide.
The company reported revenues of $42.8 million for the year ended September 30,
2001, up 49 percent from the prior year--an increase driven primarily by the
growing sales of the Imaggia digital printing system.
The transaction, which will be financed in its entirety through a bank credit
facility, is subject to Canadian regulatory approval.
"The combination of Check Technology and Delphax is an example of vertical
integration at its best - a superb fit, a logical progression in a strong and
successful working relationship as customer and supplier," Xxxxxx said. "It is a
relationship that spans two decades, beginning with the creation of the product
that launched Check Technology - the Checktronic(R) - and continuing with the
development of the Imaggia, which offers the world's fastest cut-sheet printing
capability. Imaggia's speed and versatility are made possible by the proprietary
electron-beam imaging technology of the Delphax Gemini print engine.
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[CHECK TECHNOLOGY CORPORATION LETTERHEAD]
Page 2 of 2
NEWS RELEASE
"The companies' product lines are highly complementary, and this agreement will
strengthen our presence in our currently served markets, as well as propel our
expansion into new markets. The products provided by Delphax will enable us to
offer both new and existing customers a wider range of digital imaging solutions
to fulfill their print production requirements."
Check Technology will assume responsibility for the sale of Delphax manufactured
products and expects to transition service for most customers to its own service
programs over the next 12 months.
Check Technology Corporation will discuss the acquisition and related strategy
in a conference call for investors and analysts scheduled for Tuesday, December
4, 2001, at 10 a.m. central time. To participate in the conference call, please
call toll-free 0-000-000-0000 shortly before 10 a.m. central time--ask for the
CHECK TECHNOLOGY conference call or the call leader, XXX XXXXXXXXX.
To listen to a taped rebroadcast of the conference call, call toll-free
0-000-000-0000 and enter reservation number 20053367, or visit the company's
website at XXX.XXXXXXXXXXXXXXX.XXX.
About Check Technology Corporation. Founded in 1981, Check Technology
Corporation is a global leader in the design, manufacture and delivery of
advanced print-production systems for financial, security, forms and commercial
printers worldwide. The Company currently has more than 450 systems installed
and does business in more than 50 countries. Headquartered in Minneapolis, with
offices in the United Kingdom and France, the Company's common stock is publicly
traded on the Nasdaq National Market tier of the Nasdaq Stock Market under the
symbol: CTCQ. Additional information is available on the Company's website at
XXX.XXXXXXXXXXXXXXX.XXX.
Statements made in this release concerning the Company's or management's
expectations about future results or events are "forward-looking statements."
Such statements are necessarily subject to risks and uncertainties that could
cause actual results to vary materially from stated expectations. Additional
information concerning the factors that could cause actual results to differ
materially from the Company's current expectations is contained in the Company's
periodic filings with the Securities and Exchange Commission.
CONTACTS:
Xxx Xxxxxxxxx Xxx Xxxxxxxxxx
Chief Financial Officer BlueFire Partners, Inc.
Check Technology Corporation (for Check Technology Corporation)
(000) 000-0000, Ext. 208 (000) 000-0000
xxxxxxxx@xxxxxxxxxxxxxxx.xxx xxxxxxxxxx@xxxxxxxxxxxxxxxx.xxx
Xxxxx Xxxxxxxx Xxxxx Xxxxxx
Vice President Sales and Marketing BlueFire Partners, Inc.
Check Technology Corporation (for Check Technology Corporation)
(000) 000-0000, Ext. 215 (000) 000-0000
xxxxxxxxx@xxxxxxxxxxxxxxx.xxx xxxxxxx@xxxxxxxxxxxxxxxx.xxx
M.H. (Xxxx) Xxxx Xxxx XxXxx
Vice President of Customer Service Public Relations
Check Technology Corporation Xerox Corporation
(000) 000-0000, Ext. 380 (000) 000-0000
xxxxx@xxxxxxxxxxxxxxx.xxx xxxx.xxxxx@xxx.xxxxx.xxx
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