EXHIBIT I
[LOGO]
EXECUTIVE OFFICES
FOR IMMEDIATE RELEASE
CONTACT:
Mark J. Bonney
President &
Chief Operating Officer
Axsys Technologies, Inc.
(860) 257-0200
AXSYS TECHNOLOGIES SIGNS DEFINITIVE MERGER AGREEMENT WITH AUTOMATION ENGINEERING
INC., AND ANNOUNCES FORMATION OF AXSYS
FIBER AUTOMATION DIVISION AND AXSYS AUTOMATION GROUP
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ROCKY HILL, CT - OCTOBER 3, 2000 - Axsys Technologies, Inc. (Nasdaq: AXYS),
a global leader in designing, manufacturing and distributing micro-positioning
and precision optical products, today announced that it has signed a definitive
agreement to acquire Automation Engineering Inc., a supplier of automation tools
and controls to the fiber optic components market, for 666,667 shares of Axsys
Technologies common stock. The transaction will be accounted for as a pooling of
interests and is expected to close within the next few weeks.
Automation Engineering Inc. (AEI) has been a supplier of automation tools
and control systems to the fiber optics industry for over 5 years, integrating
machine vision, precision positioning and material handling, all controlled with
its proprietary FlexAuto-TM- software. AEI recorded sales in the quarter ended
June 30, 2000 of $389 thousand and orders in the twelve months ended June 30,
2000 totaling $1.7 million. AEI's core competency in fiber handling has been
successfully applied in several fiber automation applications including fiber
and photonic component alignment and assembly, optical MEMs
(micro-electromechanical ) test and inspection systems and fiber drawing towers,
many focused on the fast growing dense wave division multiplexing ("DWDM")
market in telecommunications.
Stephen Bershad, Chairman and CEO of Axsys stated, "The acquisition of AEI
is an ideal complement to our core micro-positioning business, and one that
allows us to leverage our vertically integrated precision positioning business
into the fast growing fiber optic component automation market." Due to the high
growth in demand for fiber capacity, there is an increasing need to improve the
accuracy and yield of fiber optic component products, in fabrication, assembly
and test. Mark Bonney, President and COO of Axsys added, "While Axsys has
participated in this industry as a supplier of subsystems for in-house
automation tools, the combination with AEI expands the scope of our product
offering. In addition, AEI's access to our micro-positioning products will allow
the development of proprietary positioning stage products that will advance the
state of micro-positioning accuracy, while seamlessly integrating vision systems
and robotic handling into turnkey integrated solutions for our customers."
AXSYS TECHNOLOGIES, INC. - 175 CAPITAL BOULEVARD - SUITE 103 -
ROCKY HILL, CT 06067
860.257.0200 - FAX: 860.594-5750 - web: www.axsys.com
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Andre By, President and Technical Director of AEI stated, "By joining with
Axsys, we will be able to benefit from Axsys' vertically integrated positioning
capabilities, allowing us to develop next generation systems with proprietary
micro-positioning systems unavailable from competing system integrators. Equally
important, Axsys will provide us with the critical mass and financial resources
necessary to support the rapid growth inherent in supporting the fiber
components market."
The Company also announced it has formed the Axsys Fiber Automation
Division in Pittsburgh, PA headed by Michael Formica, formerly Director of
Product Marketing at Aerotech, Inc. Initially staffed with six multi-disciplined
engineers, this operation will focus on designing proprietary automation tools
specifically for the fiber optics market, designed around next generation
mechanical micro-positioning platforms. Michael Formica commented "Axsys is
providing the foundation to build a first class automation company, leveraging
its existing engineering and manufacturing resources with the recent addition of
engineers deeply rooted in the fiber automation industry."
The acquisition of AEI, combined with Axsys Fiber Automation Division and
Axsys' existing micro-positioning airbearing stage operation in Santa Barbara,
CA will form Axsys' Automation Group. Mark Bonney added, "We are very excited to
add substantially to our capabilities and to create this new group within Axsys.
Given the rapid growth forecasted in the fiber automation market, over the next
18 months, we expect to invest heavily in this group as we continue to add
talented engineering, operations and sales personnel in order to build it into a
formidable supplier. While these investments will have a negative impact on our
near term earnings, we expect substantial returns in the future."
Axsys management invites you to listen to a conference call regarding
this announcement to be held on Wednesday, October 4, 2000 at 11:00 a.m. EDT.
The call number is (888) 694-1321.
Axsys Technologies, Inc. designs, manufactures, markets and distributes
micro-positioning and precision optical products for a variety of markets,
including defense, space, digital imaging and electronics capital equipment. The
company also distributes precision ball bearings for industrial, consumer and
other commercial applications. For more information, contact Axsys Technologies,
Inc., www.axsys.com.
This news release contains certain forward-looking statements. The
company's business is subject to various risks and uncertainties. As a result,
actual future results and developments may be materially different from those
expressed or implied in any forward-looking statement. Disclosure regarding
factors affecting the company's future results and developments is contained in
the Company's public filings with the Securities and Exchange Commission,
including the Company's annual report and Form 10-K for the fiscal year ended
December 31, 1999.
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