Presstek to Acquire A.B. Dick

Published: July 15, 2004, By pffc-online.com

PRESS RELEASE

HUDSON, NH, USA—Presstek Inc. reports it has entered into an asset purchase agreement with A.B.Dick, under which Presstek will acquire the business and assets of the privately held A.B.Dick Company through a US Bankruptcy Code section 363 asset sale.

A.B.Dick Company filed for Chapter 11 bankruptcy protection earlier this week; the transaction, valued at approximately $40 million, is subject to Bankruptcy Court approval.

Presstek's CFO Moosa E. Moosa states, "Presstek has also joined with A.B.Dick's current lender, Key Corporate Capital, Inc., to provide $7 million in debtor-in-possession (DIP) financing, subject to Bankruptcy Court approval, to fund A.B.Dick's post-petition operating expenses and to meet supplier and employee commitments through the completion of the sale proceedings. We anticipate the sale proceedings will be complete in approximately 90 days."

Adds Presstek president/CEO Edward J. Marino, "We view this potential acquisition as a strategic move to expand the long-term business opportunities for both Presstek and A.B.Dick. The acquisition is designed to extend the distribution capability and channel support for Presstek and to drive an increased level of digital technology and services by leveraging Presstek's industry-leading technology portfolio. As part of Presstek's market-focused and customer-oriented strategic direction, this acquisition represents a focused investment for future business growth."

Learn more about Presstek at presstek.com. Visit A.B. Dick at abdick.com.