[BELL MICROPRODUCTS LOGO]
CONTACT: Graeme Watt
President
Bell Microproducts Europe
Office +44 208 410 7007
Mobile +44 7771 503817
Rob Watson
Director, Marketing Communications
Bell Microproducts
(408) 501 3315
FOR IMMEDIATE RELEASE
BELL MICROPRODUCTS ANNOUNCES
THE ACQUISITION OF OPENPSL LTD.
LEADING VALUE-ADDED DISTRIBUTOR IN UK AND IRELAND OF ENTERPRISE, STORAGE AND
SECURITY PRODUCTS AND SERVICES TO JOIN BELL MICROPRODUCTS' EUROPEAN ORGANIZATION
SAN JOSE, CA-- (JUNE 22, 2004)-- BELL MICROPRODUCTS INC. (NASDAQ:BELM), A
LEADING INTERNATIONAL VALUE-ADDED PROVIDER OF A WIDE RANGE OF HIGH TECHNOLOGY
PRODUCTS, SOLUTIONS AND SERVICES, TODAY ANNOUNCED THAT IT HAS ACQUIRED OPENPSL
LTD., HEADQUARTERED IN MANCHESTER, ENGLAND. THE ACQUISITION WAS MADE WITH A MIX
OF STOCK AND CASH FOR AN AGGREGATE PURCHASE PRICE OF APPROXIMATELY $36 MILLION
(USD).
OpenPSL is a leading value added distributor of enterprise, storage and security
products and related professional services to VARs, system integrators, and
software companies in the UK and Ireland. The company is projected to generate
revenues of approximately $209 million (Pound Sterling115 million) in the fiscal
year ending July 31, 2004. The acquisition is expected to be accretive to Bell
Microproducts' earnings in 2004.
The company has offices in Dublin, Ireland, Leeds, Bracknell and Nottingham with
corporate offices in Manchester, United Kingdom. The company has 160 employees.
OpenPSL has six divisions including Enterprise, Commercial, Partner Services,
and Security. The company also has a division in Ireland specializing in Oracle
and HP solutions and a specialized IBM division. OpenPSL's reach expands across
server, storage, networking, technical computing, thin client, emulation, fax
and security technologies. Their linecard of franchised suppliers includes
Hewlett Packard, IBM, Oracle, Veritas, Allied Telesyn, Microsoft, and others,
which enhances and complements both the Bell Microproducts Europe and Bell
Microproducts Americas existing line cards.
OpenPSL will be an integral strategic contributor to the overall implementation
of Bell Microproducts' European strategy. OpenPSL's management team, led by its
CEO, Mike Kontowtt, will continue to manage the company as a business unit
focusing on selected customers and products. The company's management will
report to Graeme Watt, President European, African and Middle Eastern
Operations, Bell Microproducts
"We are delighted with the acquisition of OpenPSL," stated Don Bell, President
and Chief Executive Officer of Bell Microproducts Worldwide. "OpenPSL is highly
regarded for the quality of its management team and staff, as well as the depth
of their customer relationships. Their focus on bringing the highest quality
services to the market has made them one of the leading independent enterprise
value added distributors in Europe. By combining the extensive personnel
expertise, product lines and services of OpenPSL with Bell Microproducts'
European strengths and capabilities, we are committed to bringing our customers
an exceptional range of storage and computing solutions. The acquisition of
OpenPSL reflects our continuing commitment to Bell Microproducts' key strategic
initiatives of expanding our strategic partner alliances, customer services, and
infrastructure in enterprise solutions. OpenPSL is expected to add to our
earnings per share as well as contribute to an increase in our gross profit
margins."
"This acquisition is in direct implementation of Bell Microproducts' strategy of
expanding our business in the UK and across Europe," stated Graeme Watt. "We
will begin by increasing our product and services offerings in the UK in areas
that we have not reached up until now. We plan to extend this model into
Continental Europe, with the goal of being the leading Pan European storage and
enterprise distributor. Together we will expand relationships with key suppliers
who are common to both companies, and to add new suppliers to strengthen the
overall products and services available to our customers."
"OpenPSL is excited to join the worldwide Bell Microproducts team, particularly
in regard to its European expansion vision," stated Mike Kontowtt, CEO OpenPSL.
"We have similar values and share a core synergy of top suppliers, and at the
same time, bring expansion in lines, expertise, programs, structure and
services."
Senior management at Hewlett-Packard (HP), the largest vendor partner for both
OpenPSL and Bell Microproducts Europe, has welcomed the announcement: "Bell
Microproducts and OpenPSL have been very effective partners for HP as individual
organizations. There is a good strategic fit between the two companies and this
acquisition will create powerful synergies in addressing the HP solutions
market. We fully support Bell Microproducts' plans to expand their successful HP
business model into other geographies" said Jos Brenkel, Vice President, HP
Solution Partners Organization EMEA.
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ABOUT BELL MICROPRODUCTS
Bell Microproducts is an international, value-added provider of a wide range of
high-technology products, solutions, and services to the industrial and
commercial markets. The company's offering includes semiconductors, computer
platforms, peripherals, and storage products of various types including desktop,
high-end computer and storage subsystems, enterprise technology solution
services such as fibre channel connectivity products, RAID, NAS and SAN
storage systems, back-up products, storage management software, and extensive
support, integration and installation services. Bell Microproducts is an
industry-recognized specialist in storage products and is one of the world's
largest storage-centric value-added distributors.
The company's products are available at any level of integration, from
components to subsystem assemblies and fully-integrated, tested and certified
system solutions. The company adds value with a broad range of services
including testing, software loading, kitting, mass storage system integration,
and computer system integration. Trained and certified technical personnel
complete each of these processes at Bell Microproducts' ISO 9001:2000
facilities. Bell Microproducts markets and distributes more than 125 brand name
product lines, as well as its own Rorke Data storage brands, to original
equipment manufacturers (OEMs), contract electronic manufacturing services (EMS)
customers, value-added resellers (VARs) and system integrators in the Americas
and Europe. More information can be found in the company's SEC filings, or by
visiting the Bell Microproducts Web site at www.bellmicro.com.
ABOUT OPENPSL
OpenPSL is the first choice value-added distributor for many vendors, VARs,
system integrators and software houses a fact demonstrated by a host of
achievements and initiatives that place the company at the forefront of its
field. As well as distributing a broad range of IT products, OpenPSL provides a
portfolio of resaleable technical services along with independent software
vendor migration and hosting services which are sold exclusively through channel
partners. OpenPSL focuses on delivering tangible value and benefits helping
customers to achieve incremental sales, capitalize on new revenue streams, lower
their cost of sale and focus on core competencies. More information on OpenPSL
can be found at www.openpsl.com.
SAFE HARBOR STATEMENT
This release may contain forward-looking statements within the meaning of the
Private Securities Litigation Reform Act of 1995. Such forward-looking
statements reflect our current views of future events and financial performance
and involve known and unknown risks and uncertainties, which could cause actual
results or facts to differ materially from such statements for a variety of
reasons. The forward-looking statements in this release relate to the growth of
our business in Europe, the expansion of supplier relationships and product and
service offerings and the financial impact of the acquisition on consolidated
earnings per share may be materially impacted by the following factors, among
others: the ability to successfully integrate OpenPSL's operations, worldwide
industry conditions, changes in product supply, pricing, and customer demand,
competition, other vagaries in the computer and electronic components markets,
changes in relationships with key suppliers, foreign currency fluctuations and
the other risks described from time to time in our reports to the Securities and
Exchange Commission (including our Annual Report on Form 10-K). Investors should
take such risks into account when making investment decisions. Shareholders and
other readers are cautioned not to place undue reliance on these forward-looking
statements, which speak only as of the date on which they are made. We undertake
no obligation to update publicly or revise any forward-looking statements.
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