HomeAbout ZoomTechnical SupportPartnersWhere To BuyProductsContact UsSearch  

Zoom Acquires Hayes Asia Pacific To Complete Worldwide Acquisition

Boston, MA, July 22, 1999 - Zoom Telephonics, Inc. (NASDAQ: ZOOM) has completed its acquisition of substantially all of the global modem assets of Hayes with this month's purchase of Hayes Asia Pacific assets. Zoom now owns the trademarks, product rights, firmware, and tooling for all Hayes modems other than EZjack, as well as numerous trademarks including Practical Peripherals, Cardinal, Optima, Accura, Ultra, Smartmodem, and Century 2.

The combination of Zoom and Hayes consolidates two of the most important personal computer Internet access brands in the world. Zoom will continue to manufacture Hayes products utilizing Hayes designs, and Zoom plans to expand the Hayes line in the future. Of course, Zoom will also continue to design, produce, and market Zoom brand products.

Zoom has now purchased the majority of Hayes assets in a series of transactions beginning with its purchase of Hayes' European operations on March 8, 1999 and ending with the Hayes Asia Pacific purchase.

Zoom's European acquisition included an ongoing business responsible for $10 million in sales in 1998. Now named Zoom/Hayes UK, this operation will focus on sales and customer support for Hayes and Zoom brand products.

Zoom's purchases of Hayes assets cost a total of $6.4 million, paid entirely in cash. In addition to the product rights, Zoom received more than $4 million of hard net assets including cash, receivables, inventory, and equipment. The equipment included the Hayes ADSL and cable modem development labs.

Already well known for its retail marketing and strong brand name, Zoom intends to maintain the focus of the Hayes' brand where it has traditionally been strongest - the Value Added Reseller (VAR) channel and VAR customers including corporate and government accounts. While certain Hayes Accura products will be available at retail in Europe and Asia, in the USA Hayes brand products will be sold through VARs. Hayes Optima products, which include various exclusive, patented features like Hayes Autosync™, will be sold through Hayes VARs worldwide to assure the high level of service and support required by the traditional customers for these products.

The Hayes VARPlus program is detailed on the Hayes website at www.hayesmicro.com, along with policies regarding warranties, technical support, and upgrades.

"We believe that this acquisition will give us the opportunity to grow our modem sales due to Hayes brand sales and expanded channels for Zoom brand products," said Frank Manning, Zoom's President and CEO. "But more exciting is the expansion of our channels and branding options for cable modems, DSL, wireless data, and other advanced networking products, which will play a major role in the future of Internet access."

Zoom Telephonics, a communications leader since 1977, designs, produces and markets modems, Wireless LAN products, ISDN products, and other products that link people and their personal computers through the world's largest network, the international telephone network, and connected networks including the Internet and corporate local area networks. Zoom Telephonics is publicly traded on NASDAQ (NASDAQ: ZOOM). Zoom products are produced in Boston, Massachusetts and sold worldwide.

For additional information please contact Investor Relations, Zoom Telephonics, 207 South Street, Boston, MA 02111, telephone (617)423-1072, fax (617)338-5015, e-mail address investor@zoomtel.com. Zoom's World Wide Web site is www.zoomtel.com.

Disclaimer: This press release contains forward-looking information relating to Zoom's plans, expectations and intentions. Actual results may be materially different than those expectations as a result of known and unknown risks, including those set forth below. Acquisitions involve numerous risks, including difficulties in the assimilation of operations and products of acquired businesses, the ability to manage geographically remote units, and the potential loss of key employees of the acquired companies. In addition, the technologies and businesses being acquired by Zoom are subject to the significant risks and uncertainties generally applicable to modem and data communications products, including rapid technological change and intense competition, uncertainty of new product development, uncertainty of component availability, early stage of development of certain data communications markets, uncertainty of market growth, as well as other risks set forth in Zoom's filings with the Securities and Exchange Commission. Zoom cautions readers not to place undue reliance upon any such forward-looking statements, which speak only as of the date made. Zoom expressly disclaims any obligation or undertaking to release publicly any updates or revisions to any such statements to reflect any change in Zoom's expectations or any change in events, conditions or circumstance on which any such statement is based.

©2010 Zoom    Home | About Zoom | Technical Support | Partners | Where to Buy | Products | Contact Us | Search