Givat Shmuel, Israel, – September 26, 2006– Cimatron Limited (NASDAQ: CIMT), a leading provider of integrated, quoting-to-delivery CAD/CAM solutions for toolmaking and manufacturing, today announced that it had completed the acquisition of Korea Cimatron Technologies (KCT), its former Korean distributor.
In a move designed to strengthen and consolidate the company's position in the Korean market, Cimatron acquired 70% of KCT – adding to the 30% already held by the company.
The newly-acquired subsidiary will retain the KCT name, and will be headed by Mr. SK Lee, who has also been appointed Cimatron Country Manger for South Korea.
"Korea is a strategic market for us" noted Danny Haran, CEO of Cimatron. "We expect this acquisition to positively impact sales and brand recognition, already strong in Korea – and we intend to invest the efforts necessary to ensure our success and growth in the country and region," he concluded.
In the coming months, Cimatron intends to expand its sales and support teams in KCT, and increase its activities within the mold design and 5-axis milling markets, in which the company's reputation and sales are already strong.
Cimatron is a leading provider of integrated, CAD/CAM solutions for toolmaking and manufacturing. Cimatron is committed to providing mold, tool and die makers with comprehensive, cost-effective solutions that streamline manufacturing cycles, enable collaboration with outside vendors, and ultimately shorten product delivery time. With more than 20,000 installations worldwide, Cimatron's customers employ its cutting-edge CAD/CAM solutions for manufacturing in the automotive, consumer plastics, electronics, and other industries.
Founded in 1982, Cimatron is publicly traded on the NASDAQ exchange under the symbol CIMT. Cimatron's subsidiaries and extensive distributor network are located in over 35 countries to serve customers worldwide with complete pre- and post-sales support. For more information, please visit http://www.cimatron.com/.
This press release includes forward looking statements, within the meaning of the Private Securities Litigation Reform Act Of 1995, which are subject to risk and uncertainties that could cause actual results to differ materially from those anticipated. Such statements may relate to the company's plans, objectives and expected financial and operating results. The words "may," "could," "would," "will," "believe," "anticipate," "estimate," "expect," "intend," "plan," and similar expressions or variations thereof are intended to identify forward-looking statements. Investors are cautioned that any such forward-looking statements are not guarantees of the future performance and involve risks and uncertainties, many of which are beyond the company's ability to control. The risks and uncertainties that may affect forward looking statements include, but are not limited to: currency fluctuations, global economic and political conditions, marketing demand for Cimatron products and services, long sales cycle, new product development, assimilating future acquisitions, maintaining relationships with customers and partners, and increased competition. For more details about the risks and uncertainties of the business, refer to the Company's filings with the Securities and Exchanges Commission. The company cannot assess the impact of or the extent to which any single factor or risk, or combination of them, may cause. Cimatron undertakes no obligation to publicly update or revise any forward looking statements, whether as a result of new information, future events or otherwise.
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