FOR IMMEDIATE RELEASE
Contacts:
Cathy Maloney Jim McLendon
Lionbridge Technologies Data Dimensions, Inc.
(781) 434-6010 (425) 468-1158
cathy_maloney@lionbridge.com jim-mclendon@data-dimensions.com
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LIONBRIDGE TECHNOLOGIES TO ACQUIRE DATA DIMENSIONS, INC.
Combination With Lionbridge's VeriTest Will Create Industry's Most Comprehensive
Global Software Certification and Outsource Testing Business
WALTHAM, MASS. -- MARCH 8, 2001 -- Lionbridge Technologies, Inc. (Nasdaq: LIOX),
a provider of software testing services and global deployment solutions and Data
Dimensions, Inc. (Nasdaq: DDIM) of Bellevue, WA, a leading provider of quality
assurance and testing services have announced that they have signed a definitive
agreement whereby Lionbridge will acquire Data Dimensions. The transaction will
be accretive to Lionbridge.
This acquisition will create one of the most comprehensive software
certification and outsourced software test organizations in the industry. Data
Dimensions offers expertise in four main areas: software testing, quality
assurance consulting services, on-site training for test planning, and
application development and maintenance services. The combined services
organization will maintain six labs in the US and five labs overseas, offering
global software publishers rapid confirmation of their products' capabilities
and interoperability in the US and overseas markets.
Under the terms of the agreement signed on March 8, 2001, each share of
Data Dimensions' common stock will convert into 0.19 of a share of Lionbridge
common stock, valuing the transaction at approximately $15 million. Completion
of the transaction is subject to customary closing conditions, including
approval by the stockholders of Data Dimensions and the receipt of regulatory
approvals. The transaction is expected to close during the second quarter.
"The combination of Lionbridge's globalization services with Data
Dimensions' testing, consulting, and applications maintenance services will
create a complete infrastructure for software publishers and corporate IT
divisions on a global scale," said Rory Cowan, CEO of Lionbridge. "We expect to
lead the growing market for outsourced IT testing with broad array of up-to-date
labs, service offerings, and a global presence. As software complexity
increases, our testing, certification, and interoperability services will get
our customers to global markets faster."
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"Our merger with Lionbridge presents a great opportunity for the clients,
employees, and shareholders of Data Dimensions," said Peter Allen, Data
Dimensions' president and CEO. "The Data Dimensions team will significantly
further its ambition to develop a market leading position in the quality
assurance and testing market. It's a natural combination of two fast-growing
organizations and fuels the creation of a leader in global technology testing
and interoperability services."
WEBCAST
The management of Lionbridge will hold a Webcast to discuss the planned
acquisition at 3:00 p.m. PT / 6:00 p.m. EST today. Participants can access the
live Webcast at http://www.lionbridge.com/march8Webcast/. The Webcast will be
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archived on the Lionbridge Web site.
ABOUT DATA DIMENSIONS
Data Dimensions, Inc., an international information technology (IT) services
company, was founded in 1968. By combining comprehensive QA consulting services,
a network of world-class test centers and an offshore applications solutions
center, Data Dimensions delivers contemporary technology solutions. From legacy
systems to handheld devices, Data Dimensions delivers quality assurance and
testing, as well as application development and maintenance services to
organizations ranging from emerging companies to the Fortune 100. Data
Dimensions applies collective expertise and proven processes to help its clients
achieve superior business results. For more information about Data Dimensions,
or for a free Web site stress test, visit the company's Web site at www.data-
dimensions.com.
VERITEST SERVICES FROM LIONBRIDGE
VeriTest is the premium provider of testing services that enable technology
companies to release proven enterprise-scale applications on a worldwide basis.
With datacenter-equipped labs in North America and Europe, VeriTest delivers
test consulting, test plan development, and test execution services. With
VeriTest services from Lionbridge, customers have a single global partner for
outsourcing specialized technical services associated with global product
releases, including software localization, quality testing, and logo
certification. To learn more, visit www.veritest.com.
ABOUT LIONBRIDGE
Lionbridge Technologies, Inc. provides global deployment services to global
businesses in the technology, telecommunications, life sciences, and financial
services industries. Lionbridge integrates data repository connectivity with
language management technology and global workflow systems to create and
maintain Web-based products and dynamic databases in multiple languages and
cultural formats. Based in Waltham, MA, Lionbridge maintains facilities in
Canada, Ireland, The Netherlands, France, Germany, China, South Korea, Japan,
Taiwan, Brazil, and the United States. To learn more, visit www.lionbridge.com.
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Forward Looking Statements
This press release contains forward-looking statements that involve risks and
uncertainties. The forward-looking statements in this release address the
following subjects: expected date of closing the merger; future financial and
operating results; and timing and benefits of the merger. Lionbridge's actual
experience may differ materially from those discussed in the forward looking
statements. Factors that might cause such a difference include the risk that
Lionbridge's and DDI's businesses will not be integrated successfully; costs
related to the merger; failure of the DDI stockholders to approve the merger;
the termination of customer contracts prior to the end of their term; customer
delays, Lionbridge's dependence on clients' product releases to generate
revenues; the ability of Lionbridge to raise additional capital; the loss of a
major client; the size, timing and recognition of revenue from major clients;
the impact of foreign currency fluctuations (particularly with respect to the
Euro) on its operating results and revenue growth; risks associated with
management of growth; market acceptance of new service offerings; the failure to
keep pace with the rapidly changing requirements of its clients; Lionbridge's
ability to attract and retain key personnel; Lionbridge being held liable for
defects or errors in its solutions; political, economic and business
fluctuations in international markets; as well as risks of downturns in
conditions generally, and in the information technology and software industries
specifically, and risks associated with competition and competitive pricing
pressures. For a more detailed description of the risk factors associated with
Lionbridge, please refer to Lionbridge's Registration Statement on Form S-3 and
Quarterly Report on Form 10-Q filed with the Securities and Exchange Commission
on November 14, 2000.
This press release contains forward-looking statements concerning Data
Dimensions Inc.'s current expectations as to results of operations and other
matters. These forward-looking statements are subject to risks and uncertainties
and the Company's actual results may vary materially depending on various
factors such as the overall demand for Information Technology consulting
services and specifically customer demand for outsourced testing and quality
assurance services, the Company's ability to keep pace with rapidly changing
technology, the development of new service offerings, the loss of a major
client, the dependence on clients' product releases, the management and
completion of client projects, the attraction and retention of employees and
successful completion of any business combination. For additional information
concerning risks associated with Data Dimensions' business and operating
results, see the Company's Form 10K for the most recently ended fiscal year,
under the heading, "Management's Discussion and Analysis of Financial Condition
and Results of Operations-Forward Looking Statements and Associated Risks."
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