ThrustMaster Executes Definitive Agreement to Sell Game Controller Business
to the Guillemot Corporation for $15 Million in Cash
Company to Announce Name Change
PORTLAND, Ore.--(BUSINESS WIRE)--July 27, 1999--ThrustMaster, Inc.
(Nasdaq:TMSR - news), today announced that it has entered into a definitive
agreement to sell the assets of the ThrustMaster game controller hardware
business to the Guillemot Corporation of Carentoir, France for $15 million
in cash.
The transaction is subject to formal ThrustMaster shareholder approval and
is expected to close in early to mid-September 1999.
``The sale of the game controller business reflects our decision to focus
exclusively on the significant opportunities in Internet community and
communications. This transaction, in conjunction with certain other near-
term strategic technology and financial initiatives, will provide us with a
significant amount of cash which will enable us to build on our unique
client-to-client approach to multi-point audio with other new technologies
that enable real-time multimedia interaction,'' stated Frank G. Hausmann,
President and CEO of ThrustMaster, Inc. ``In addition, we continue to build
a strong management team capable of developing new strategic opportunities
and relationships,'' added Hausmann.
The ThrustMaster name is included in the assets being sold. The Company
will announce its new name before the transaction closes in September. The
new name will reflect the new strategic direction of the Company in
Internet community and communications and will be determined by the outcome
of other near-term strategic initiatives. ``Our strategy is to grow and
leverage our technological capabilities, product offerings and
partner/customer relationships through make, license or buy arrangements
where appropriate,'' stated David Mcfeeters-Krone, Vice President of
Strategic Planning for ThrustMaster, Inc.
The Guillemot Corporation is a large respected manufacturer and reseller of
a broad range of computer peripheral products, including 3D graphics cards,
sound cards and game controllers. Guillemot plans to continue the
ThrustMaster brand name and to build on its reputation for innovative, high
quality products. ``Guillemot has the financial strength and economies of
scale necessary to continue to build on ThrustMaster's success in the game
controller business,'' stated Hausmann. ``I am confident that we have
placed the ThrustMaster name in very capable hands.''
This press release may include forward-looking statements. Investors are
cautioned that forward-looking statements involve risks and uncertainties
that could cause actual results to differ materially from those in the
forward-looking statements. Specifically, the Company's Internet community
and communications initiative is a new business in a rapidly evolving
market. Historically, the ThrustMaster game controller hardware business
has accounted for substantially all of the Company's assets, liabilities,
revenues and expenses. Investors are encouraged to review the Company's
filings with the Securities and Exchange Commission, including the
Company's 1998 Form 10-K, which are available from the Company without
charge, for a further description of the risks and uncertainties relating
to forward-looking statements made by the Company as well as to other
aspects of the Company's business.
