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
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
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
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 email@example.com.
Zoom's World Wide Web site is www.zoomtel.com.