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Unedited press release follows:
Rimage Announces Definitive Agreement to Acquire Cedar Technologies
Minneapolis, February 28, 2000 — Rimage Corporation [NSDQ: RIMG], a pioneer in the CD-R publishing market, announced today that it has signed a definitive agreement to acquire Cedar Technologies, Inc., a manufacturer of CD-R desktop publishing and duplication equipment.
The agreement calls for Rimage to exchange shares of its common stock for all of the common stock of Cedar and for all option and warrants of Cedar to become Rimage options and warrants. Although the precise exchange ratio will not be determined until completion of the transaction, Rimage expects to issue approximately 270,000 share of its common stock, and assume obligations to issue approximately an additional 334,000 shares of common stock under options and warrants, in the transaction. The transaction will be completed through a merger of a subsidiary of Rimage into Cedar and will be accounted for as a pooling of interests.
“The acquisition will allow both Rimage and Cedar to capitalize on their mutual strengths and provide growth in their respective markets,” said Bernie Aldrich, President and CEO of Rimage. “This synergistic alliance will broaden the Rimage product line and offer new opportunities to expand market penetration in both publishing and duplication.”
Mr. Aldrich indicated that he would expect Rimage to continue to market Cedar products under the Cedar name using Cedar’s distribution channel after the acquisition, although manufacturing would be consolidated at the Rimage facility.
Rimage noted that it expects that the transaction, which is subject approval by shareholders of Cedar, will be completed within the next few weeks.
Cedar Technologies is located in Minneapolis, Minnesota, and has developed a strong presence in the desktop duplication environment. They presently distribute product on a worldwide basis.
Rimage’s automated CD duplicating and publishing systems are used in a variety of ways to distribute digital information on CDs. Kodak’s PictureCD system uses Rimage CD-R technology to provide customers with an easy way to bring conventionally captured images into a digital format. Many game and software suppliers also employ Rimage systems for on-demand, customized CD production, and Rimage systems are used in a number of high-volume or just-in-time data distribution applications.
Minnesota-based Rimage Corporation has been in business since 1978 and has operations in the United States, Europe and Asia. The company’s major products include digital publishing and duplication systems for CD-R media serving many diverse markets, including government, finance, health care, software manufacturing and entertainment.
/contact: Bernard P. Aldrich, Chief Executive Officer/President, or Robert M. Wolf, Treasurer, both of Rimage Corporation 612-944-8144