EXHIBIT 99.1
[LOGO]
One Jake Brown Road
Old Bridge, NJ 08857-1000
(732) 679-4000 Fax (732) 679-4353
www.blondertongue.com
FOR IMMEDIATE RELEASE CONTACT: James A. Luksch
Chairman and
Chief Executive Officer
(732) 679-4000
BLONDER TONGUE SELLS ITS TEXAS BASED PRIVATE CABLE TELEVISION SUBSIDIARY TO
DIRECPATH, A JOINT VENTURE BETWEEN HICKS HOLDINGS LLC AND DIRECTV
OLD BRIDGE, NJ, December 15, 2006 - - Blonder Tongue Laboratories, Inc. (AMEX:
"BDR") today announced that it has consummated the sale of BDR Broadband, LLC,
its Texas-based private cable television business, to DirecPath, a joint venture
between Hicks Holdings LLC and The DIRECTV Group, Inc., for an aggregate
purchase price of approximately $3.1 million.
The transaction will provide Blonder Tongue with a gain of approximately
$875,000 on the sale and should also result in annualized savings of
approximately $525,000. The transaction also includes certain long-term
equipment purchase commitments from DirecPath, which are anticipated to form the
basis of a new and meaningful customer relationship. It is also anticipated that
Blonder Tongue may provide DirecPath with certain systems engineering and
technical services. The transaction enhances DirecPath's property portfolio,
particularly in the Texas area, to provide bundled DIRECTV(R)programming,
broadband voice and data services and security to multiple dwelling communities.
Commenting on the transaction, James A. Luksch, Chairman and Chief Executive
Officer said, "We could not have asked for a more suitable buyer for this
business. DirecPath is a leader servicing the multiple dwelling unit market. We
see significant growth opportunities developing from the equipment and
engineering services agreements that were negotiated as part of this
transaction." DirecPath CEO, Paul Savoldelli commenting on the transaction,
added "We're excited about the BDR Broadband acquisition as it enables DirecPath
to quickly build the critical mass necessary to compete in major markets like
Dallas and Houston, as a part of our overall buy-and-build strategy."
About Blonder Tongue and BDR Broadband
Founded in 1950, Blonder Tongue Laboratories, Inc. has evolved from a
manufacturer of electronic equipment for the private cable industry to a
principal provider of integrated network solutions and technical services to
broadband service providers. The Company designs, manufactures, and supplies a
comprehensive line of equipment to deliver video (analog & digital), high speed
data and voice services over integrated coaxial and fiber optic broadband
networks today and over packet based, Internet protocol networks of the future.
For more information regarding Blonder Tongue or its products, please visit the
Company's Web site at www.blondertongue.com or contact the Company directly at
(732) 679-4000. BDR Broadband was formed by Blonder Tongue in 2002 for the
purpose of acquiring video and data private cable television systems. BDR
Broadband provides video and high-speed data services to MDU communities located
in Texas.
About DirecPath
DirecPath, a joint venture between Hicks Holdings LLC and The DIRECTV Group,
Inc., was formed in May 2006 to better serve the needs of residents living in
gated communities and multiple dwelling units, including apartment complexes,
condominiums and town homes. In addition to outstanding customer service,
DirecPath offers its customers a bundled selection of the full range of
DIRECTV(R) programming, broadband Internet and telephony. DirecPath's customers
benefit from a single bill, a single installation and a single call for customer
service - advantages enjoyed by those living in single-family homes. From an MDU
property owner's perspective, this increases tenant satisfaction and enhances
the value of the property.
"Safe Harbor" Statement under the Private Securities Litigation Reform Act of
1995: The information set forth above includes "forward-looking" statements and
accordingly, the cautionary statements contained in Blonder Tongue's Annual
Report and Form 10-K for the year ended December 31, 2005 (See Item 1: Business,
Item 1A: Risk Factors and Item 7: Management's Discussion and Analysis of
Financial Condition and Results of Operations), and other filings with the
Securities and Exchange Commission are incorporated herein by reference. The
words "believe", "expect", "anticipate", "should", "project", and similar
expressions identify forward-looking statements. Readers are cautioned not to
place undue reliance on these forward-looking statements, which reflect
management's analysis only as of the date hereof. Blonder Tongue undertakes no
obligation to publicly revise these forward-looking statements to reflect events
or circumstances that arise after the date hereof. Blonder Tongue's actual
results may differ from the anticipated results or other expectations expressed
in Blonder Tongue's "forward-looking" statements.
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Blonder Tongue Laboratories (BDRL)
Filed: 21 Dec 06, 12:00am