|NDT.net||September 2004, Vol. 9 No.09|
Shareholders' equity to increase to over $8M
Yoqneam, Israel, September 8, 2004 – Further to its announcement of July 13, 2004, Elbit Vision Systems Ltd. (OTCBB: EVSNF.OB) today announced that it has completed the acquisition of ScanMaster, a company that develops, manufactures and markets ultrasonic inspection equipment for the automotive, transportation and metal industries. To complete the transaction, EVS paid ScanMaster’s shareholders $3 million in cash and issued 7,414,213 shares of EVS common stock. The funds were drawn from EVS’ equity line with Cornell Capital. Following the completion of the transaction, ScanMaster’s former shareholders will own approximately 22% of EVS’ share capital, and EVS' shareholder’s equity will exceed $8 million.
Both this acquisition and EVS’ June 2004 acquisition of Yuravision Ltd., a developer of visual inspection systems for the LCD industry are central components of EVS’ reorganization and strategic plan to expand its product portfolio and penetrate new markets. Having completed both transactions, EVS will now begin operating as two distinct divisions: 1) the Industrial Division, consisting of EVS' web inspection activities and ScanMaster’s NDT inspection business, and 2) the Microelectronic Division, consisting of EVS’ Bare Wafer Inspection activities and Yuravision’s LCD Inspection business. The Industrial Division will benefit from access to ScanMaster’s extensive blue-chip customer base, including industry-leading enterprises such as General Electric, Pratt & Whitney, General Motors, Mercedes, Daimler Chrysler, BMW, Volkswagen, Volvo Aero and others.
Commenting on the transaction, Mr. Zami Aberman, President of EVS, said, “The acquisition of ScanMaster is an important step that will help us expand our marketing reach and product portfolio while increasing the efficiency of our operations.
“As an established provider of inspection solutions for the automotive, aircraft and metals industries, ScanMaster’s solutions and markets are complementary to ours. By joining forces, we will position EVS as a provider of best-in-class inspection systems for industries with significant growth potential such as automotive, aircraft and metals, as well as the web, microelectronics and other industries that we currently target. The combination of this broad product portfolio and our deep deployment experience, together with our new presence in South Korea that we gained through the Yuravision acquisition, will enable us to address many exciting new opportunities. We look forward to benefiting from the operating synergies that we will realize through the combination of our R&D, sales, marketing and customer support organizations.”
Mr. Menashe Shohat, CEO of ScanMaster, added, “We are excited to join forces with EVS, a recognized innovator in the inspection solutions industry. We expect that Scanmaster’s product sales will begin benefiting immediately from the new channels that the transaction will open up. In addition, the transaction will allow us to accelerate our R&D efforts, including the development of advanced new digital technologies, software-based operator interfaces and ‘smart’, high precision mechanics. As a company able to offer these cutting-edge solutions together with an extensive marketing reach and the industry’s most experienced deployment and support team, EVS will be positioned for leadership in growing markets.”
About the EVS:
Forward looking statements in this release with respect to the Company’s business, financial condition and results
of operations are subject to risks and uncertainties that could cause actual results to differ materially from those
contemplated in such forward looking statements, including, but not limited to, share price, product demand,
pricing, market acceptance, changing economic conditions, risks in product and technology development, the effect
of the Company’s accounting policies as well as certain other risk factors which are detailed from time to time in
the Company’s SEC filings.