LOS ANGELES--(BUSINESS WIRE)--July 21, 2000
DVBS, Inc. formerly known as IMPOREX INVESTMENTS CORP. (Pink Sheets:IMVC) announced today that it has completed the integration of Sirex USA, Inc., a fifteen year old full service server systems manufacturer, into the DVBS family of companies.
Sirex USA, Inc. employs over 25 staff in the design, manufacture, systems integration and support of a full line of high-performance, Intel processor based computers and servers. It is located in a 10,000 square foot facility in New Hyde Park, Long Island, New York. The company was acquired in March for $1.6 million in cash and 230,000 shares of DVBS, Inc. Regulation 144 restricted common shares of stock.
Over the last 15 years, Sirex has developed a reputation as a financially solid, high volume systems integrator that distinguishes itself through versatility and cost-effectiveness. Well known as a "white-box" hardware seller, Sirex specializes in designing and building solutions to its corporate and institutional clients in the metropolitan New York area. Over the last 18 months Sirex has become a vendor of choice in the regional ISP market.
According to the unaudited financial statements, in 1999, Sirex USA, Inc. had net sales of $20,163,742 with an after tax profit of $73,432. However, approximately $14,000,000 of net sales were produced by the low margin components division that DVBS has closed in its consolidation. According to Kenny Oh, President of FICS Networks, Inc., a Vancouver, B.C. based VAR acquired by DVBS, Inc. in December 1999, "Sirex is a much healthier, more concentrated, and higher margin company without the drag of the components division."
In announcing the consolidation, Mike Meyer, Chairman and Co-Founder of DVBS, Inc. stated, "DVBS was historically designed as a core technology incubator and licensing entity. As our technical products began to achieve market-readiness, however, we saw an opportunity to broaden our platform of innovative solutions and to enhance our creative team with some pragmatic partners."
Mr. Meyer went on to point out that "the computer industry's new business model of horizontal integration promotes intra-competition among the different layers of technologies. Benefits to end-users include significantly more options and lower prices. Our relationship with FICS Networks and Sirex USA is consistent with emerging industry practice as well as with our own marketing strategy. We believe that the best way to see our technologies fully commercialised and in widespread use is to provide clients with maximum choice at affordable prices.
"The Company's decision to acquire computer components/ distributors will enable us to successfully expand into systems sales, distribution, retail sales and on-line e-commerce, especially in applications featuring DVBS' proprietary software. We believe that with the addition of the superb professionals of Sirex, along with the outstanding management team which should be announced by Friday, DVBS will gain a solid opportunity to produce significant revenues for our Company and our shareholders."
The DVBS technical team is based in California and Vancouver, B.C.. Management, marketing and administrative offices are located in Los Angeles, Seattle, Long Island, N.Y., Vancouver, Canada, and Seoul, Korea. Detailed information on DVBS and its technologies can be found at www.sirex.net and www.videotechnology.com.
DVBS, Inc. (NQB:IMVC) is headquartered in Los Angeles, Ca. Its mission is to develop communication technologies that improve voice, data, and image transmissions over the Internet and on private and commercial Intranets. Among the Company's market ready innovations are: the Afterburner(TM) web server, the LiveCam(TM) streaming video solution; the SDSN(TM) distributed server protocols; and the U2U(TM) video-conferencing system. These products are designed to promote multimedia convergence by overcoming current Internet constraints in bandwidth availability and routing efficiency, especially as applied to the transmission of high-quality video and audio content.
Further information on IMVC/DVBS can be obtained by contacting:
Clayton Daniels and Associates (Canada), 1-800-808-3350.
Statements included within this press release that are not historical in nature constitute forward-looking statements for the purpose of the safe harbour provided by the Private Securities Litigation Reform Act of 1995. Investors are cautioned that this press release contains certain such forward-looking statements that involve substantial risks and uncertainties. When used, the words "anticipate", "believe", "estimate", "expect", and similar expressions as they relate to the Company or its management are intended to identify such forward-looking statements. There can be no assurance that the Company will be able to market, sell or deliver successfully its services outside the United States, given risk factors including but not limited to unexpected changes in regulatory requirements, export restrictions, tariffs and other trade barriers, challenges in staffing and managing foreign operations, differing technology standards, employment laws and practices in foreign countries, longer payment cycles, problems in collecting accounts receivable, political instability, fluctuations in currency exchange rates, imposition of currency exchange controls, seasonal restrictions in business activity and potentially adverse tax consequences, any of which could adversely affect the Company's international operations. There can be no assurance that one or more of these factors will not have a material adverse affect on the Company's current or future international operations and consequently, on the Company's business, results of operations, and financial condition.
CONTACT: Digital Video Broadcast Systems, Inc.
Michael Meyer
800/578-5761
mike@sirexusa.com
www.sirex.net or www.videotechnology.com.
KEYWORD: CALIFORNIA
INDUSTRY KEYWORD: COMPUTERS/ELECTRONICS HARDWARE MERGERS/ACQ
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