Path: network.ucsd.edu!ucbvax!agate!howland.reston.ans.net!cs.utexas.edu!not-for-mail From: lemke@Radius.COM (Steve Lemke) Newsgroups: comp.sys.mac.announce Subject: INDUSTRY NEWS: Radius and SuperMac announce agreement to merge Message-ID: <CqA1L0.49@Radius.COM> Date: 24 May 94 00:35:13 GMT Sender: nobody@cs.utexas.edu Followup-To: comp.sys.mac.misc Organization: Radius Inc. (Software Engineering Dept.) Lines: 72 Approved: werner@rascal.ics.utexas.edu (Comp.sys.mac.announce Moderator) NNTP-Posting-Host: news.cs.utexas.edu [ trimmed, a little, for easier digestion. ---Werner ] Radius and SuperMac Announce Agreement to Merge SAN JOSE, CA (MAY 23) BUSINESS WIRE - May 23, 1994--Radius Inc. (NASDAQ: RDUS) and SuperMac Technology, Inc. (NASDAQ: SMAC) today announced a definitive agreement to merge through an exchange of common stock of the two companies. Under the agreement, which has been approved by the board of directors of each company, Radius will exchange 1.4763 shares of its common stock for each share of SuperMac common stock. Based on approximately 8.9 million outstanding SuperMac shares and the current Radius stock price, the transaction will have a value of approximately $80.5 million. The merger is intended to qualify as a tax-free reorganization and a "pooling of interests" for accounting and financial purposes. The merger will be considered for approval by the shareholders of both companies at separate meetings anticipated in August 1994 "to achieve substantial cost savings in the near term and generate the resources needed to develop, acquire, and market leading edge products in the future." Current plans call for the new company to continue to market and support all major products of both companies and continue the sales and marketing programs aimed at supporting the efforts of their resellers. Under the terms of the agreement, Berger, 40, will become chairman of the board and chief executive officer of the combined company. McConnell, 49, will be vice chairman and have responsibility for industry relations and providing advice on marketing and product strategy. The board of directors of the combined company will consist of Berger and three other members of the existing Radius board, and McConnell and Lawrence G. Finch, currently chairman of the SuperMac board. On a combined basis, the companies had revenues during the last calendar year of $340 million. Radius has approximately 14.2 million shares outstanding and SuperMac has 8.9 million. Each company has extensive sales and distribution operations throughout North America, Europe, and the Asia-Pacific region. Based in San Jose, California, Radius delivers extended computer system performance, faster graphics, high quality digital video, and enhanced viewing display products to leading-edge computer users of publishing, graphics, video and education applications. The company's products are available through a worldwide network of Radius authorized resellers, system integrators and distributors and are supported by the Radius "Worry Free Warranty" program, which features on-site, overnight replacement of products in North America and the United Kingdom; and by a lifetime warranty on all add-on or add-in cards. Based in Sunnyvale, California, SuperMac designs products that accelerate and enhance the performance of Power Macintosh, Macintosh and Windows-based computer systems. The company supplies graphics peripherals for color-publishing, digital video, digital photography, and business productivity applications. Its products include accelerated color graphics cards, image-processing accelerators, large-screen displays, color printers, and digital-video solutions. -0- CONTACT: Radius Inc. Robert Saltmarsh, 408/955-1765 SuperMac Technology Inc. James Heisch, 408/541-5270 -- Steve Lemke, Senior Software Engineer, Radius Inc. (lemke@radius.com) Any opinions expressed are mine, and may not be shared by Radius Inc. (Please send any general support questions to: "support@radius.com".)