NCTI Subsidiary Signs Definitive Agreement to Aquire Precision Power
26 August 1998
NCTI Subsidiary Signs Definitive Agreement to Acquire Phaze Audio, LLC, dba Precision Power, Inc.
STAMFORD, Conn--August 26, 1998--A Leading Manufacturer of Audio Products for Automotive
Aftermarket
Noise Cancellation Technologies, Inc. announced today the signing of a definitive agreement for the acquisition of Phaze Audio, LLC, dba Precision Power, Inc. ("Precision Power") by the Company's NCT Audio Products, Inc. subsidiary. Precision Power is a leading aftermarket automotive audio manufacturer with annual revenues of approximately $15 million.
"The acquisition of Precision Power provides NCT Audio Products with immediate distribution capabilities through a strong network of 600 automotive aftermarket dealers," said Michael Parrella, President, NCT. "This access to the 12-volt aftermarket is a natural for all of NCT's products." Mr. Parrella continued, "We are particularly pleased with the acquisition of Precision Power's talented management team. Their industry expertise and experience will be an invaluable asset to NCT Audio and we look forward to a successful working relationship."
Precision Power is the second of three acquisition targets for NCT Audio Products, Inc. As was previously announced, the companies to be acquired, along with the subsidiary's Gekko(tm) Flat Speaker product line, are expected to report approximately $67 million in annual revenues and approximately $5 million in pre-tax profits in calendar year 1998.
"Precision Power is known for its high-performance amplification and signal processing and has recently diversified into related speaker categories with innovative new subwoofer designs," said Doug Morby, President, Precision Power. "We have aggressive growth plans in sales and product offerings for 1999 and we believe that joining NCT Audio Products, Inc. will afford Precision Power the new technologies to further diversify and expand our lines into the future."
Precision Power is a leading manufacturer of high-performance audio products for the automotive aftermarket. The Phoenix, Arizona-based company has been operating for fifteen years and has been the recipient of numerous awards for engineering design and innovation and has been recognized at international sound-off competitions. Precision Power products are sold through an established network of independent mobile audio specialists throughout North America and the Company enjoys solid relationships with international distributors in the Pacific Rim, Europe and South America.
NCT Audio Products, Inc., a subsidiary of Noise Cancellation Technologies, Inc. (NCTI), is responsible for developing and commercializing audio products using proprietary technology. Gekko Flat Speakers are the first product line introduced by NCT Audio Products, Inc. Additional products are planned for automotive, commercial and professional applications.
NCTI is a leading technology developer with an extensive portfolio of proprietary algorithms and a wide variety of product offerings for consumer, commercial and industrial applications. The Company is organized in four strategic business units (SBUs"), each focused on commercialization in specific markets. The SBUs are NCT Audio Products, Inc., NCT Hearing Products, Inc., NCT Communications and NCT Microphones. For more information, refer to the Company's World Wide Web site at http://www.nct-active.com.
Cautionary Statement Regarding Forward-Looking Statements
Certain information contained in this press release are forward-looking statements within the meaning of the Private Securities Litigation Act of 1995 (the "Act"), which became law in December 1995. In order to obtain the benefits of the "safe harbor" provisions of the Act for any such forward-looking statements, the Company wishes to caution investors and prospective investors about significant factors, which among others, have in some cases affected the Company's actual results and are in the future likely to affect the Company's actual results and cause them to differ materially from those expressed in any such forward-looking statements. Investors and prospective investors should read this press release in conjunction with the Company's most recent Form 10-K and Forms 10-Q.
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