Exhibit 99
Siemens/Norstan Used Equipment Alliance Ends;
Norstan to Continue Buying and Selling Siemens Used Equipment
MINNEAPOLIS--(BUSINESS WIRE)--July 22, 2004--Norstan, Inc.
(Nasdaq:NRRD), a leading provider of communications solutions and
services, announced today that Siemens Information and Communication
Networks, Inc. (Siemens), has elected to end its alliance with Norstan
Communications, Inc., in the used equipment business effective at the
expiration of the current agreement, July 31, 2004. Under the current
agreement Norstan managed the acquisition, marketing, refurbishment
and resale of Siemens certified used telephony equipment, becoming the
largest supplier of Siemens and ROLM refurbished equipment.
Effective August 1, 2004, Norstan will continue offering customers
refurbished Siemens telephony equipment, in addition to new and used
audio and video conferencing systems, wireless solutions, call center
accessories, components, desktop products, and services under the name
Norstan Resale Services Group (NRSG).
In fiscal 1988, Norstan established its first used equipment
business unit targeting the secondary market, Previously Owned
Equipment, selling used ROLM products. That same year, Norstan Repair
Center was launched to repair and refurbish printed circuit boards and
digital phones. Norstan's used equipment business unit became ROLM's
agent for the refurbishment and sale of used equipment in the U.S. in
fiscal 1991, forming ROLM Resale Services, and continued in the
alliance with Siemens through the current agreement period.
"Regardless of our name, our commitment to customer service will
not change," said Roger Van Beusekom, senior vice president of Resale
Services at Norstan. "Customers can rest assured that Norstan Resale
Services Group will continue offering the highest quality voice and
data products and services that we've provided for the past 16 years."
Following the expiration of the alliance, NRSG will buy and sell
used Siemens equipment to refurbish and offer to the secondary market,
primarily in the U.S. and Canada. In addition to refurbished Siemens
telephony equipment, NRSG will continue offering new and used
telecommunications equipment from other manufacturers, including
ClearOne, Kentrox, Plantronics, Polycom and SpectraLink.
"Although the roles of Norstan Resale Services and Siemens are
changing in the refurbished equipment business, it is too early to
predict how the change will affect NRSG's financial performance," said
Scott G. Christian, Norstan's president and chief executive officer.
"While we will now compete directly with Siemens in the resale
business, we believe there are opportunities for us to expand the
products we will provide and we will be focusing our efforts to
further build our brand in the resale marketplace."
The expiration of the resale alliance does not affect Norstan
Communication's ongoing distribution agreement with Siemens. Norstan
has been a distributor of new Siemens communications equipment since
1976 and is currently Siemens' largest independent distributor in the
U.S. and Canada. Siemens recently awarded Norstan the Sales Pinnacle
Award as the top revenue producing enterprise partner for fiscal
2003-2004.
"Norstan became a Siemens/ROLM distributor nearly 30 years ago,"
Christian said. "Siemens is a valued partner to us. Our customers have
and will continue to benefit from the Siemens solutions and services
Norstan offers them to meet their communications needs."
About Norstan, Inc.
Norstan, Inc. (Nasdaq:NRRD) is a full-service communications
solutions and services company delivering voice and data technologies
and services, and remanufactured equipment to corporate end-users,
channel partners and public sector companies. Norstan also offers a
full range of technologies for customer contact solutions, voice and
convergence, messaging, infrastructure, conferencing and mobility.
Norstan has offices throughout the United States and Canada. To learn
more, visit the Norstan website at www.norstan.com.
Cautionary Statement Under the Private Securities Litigation
Reform Act of 1995
This news release may contain forward-looking statements within
the meaning of the Private Securities Litigation Acts of 1995. A
number of factors should be considered in conjunction with the above
forward-looking statements, including changes in economic and market
conditions, factors related to the development of new technologies,
product pricing and margins, labor costs, industry regulation,
management of growth, integration of acquisitions, funding and
sourcing of adequate inventory, access to adequate financing and other
factors set forth in cautionary statements included in Norstan's
Annual Report on Form 10-K and other documents as filed with the
Securities and Exchange Commission from time to time. Readers are
cautioned not to place undue reliance on forward-looking statements,
which reflect management's analysis only as of the date of this
release. The company undertakes no obligation to update these
forward-looking statements to reflect events and circumstances that
may arise after the date of this release. Disclosure of revenue
dollars are not intended to reflect materiality, and are subject to
confidentiality provisions and customer consent.
SEC Form 8-K
Concurrent with this news release, Norstan filed a Form 8-K with
the Securities and Exchange Commission (SEC) as required by Item 9 of
the instructions to Form 8-K. This Form 8-K is available on Norstan's
Investor Relations web site (www.norstan.com) and on the SEC's web
site (www.sec.gov).
Norstan and associated product names are trademarks or registered
trademarks of Norstan, Inc. in the United States and/or other
countries. All other products and services mentioned in this document
may be trademarks of the companies with which they are associated.
CONTACT: Norstan, Inc., Minneapolis
Jan W. Drymon, 952-352-4292
jan.drymon@norstan.com
or
The Carideo Group
Tony Carideo, 612-317-2880
tony@carideogroup.com