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IOMega to acquire ExcelStor Group


Iomega has entered into a definitive share purchase agreement to acquire ExcelStor Great Wall Technology Limited, a Cayman Islands company, and Shenzhen ExcelStor Technology Limited, a PRC company (collectively, with their subsidiaries, “ExcelStor”).

Iomega will issue approximately 84 million shares of common stock in Iomega in exchange for all outstanding ExcelStor common shares, representing in the aggregate 60% of the fully diluted capitalization of Iomega, to be measured as of the closing date.  The Boards of Directors of both Iomega and ExcelStor have unanimously approved the share purchase agreement.
ExcelStor designs, develops, manufactures and provides advanced digital storage technologies.  Their principal product lines include hard disk drives (HDD), security storage and external storage.  ExcelStor manufactures certain of Iomega’s external HDD products and has manufactured Iomega’s REV products since 2004.  
ExcelStor markets its products primarily to OEMs as an electronics manufacturing services provider and also sells its own ExcelStor-branded products through distributors throughout the world.  ExcelStor produces more than 20 million HDD-based devices per year.  
For its fiscal year ended 31 December 2006, ExcelStor had revenue of $707,1-million (audited in accordance with US GAAP).  For the six month period ended 30 June 2007, ExcelStor had revenue of $371,3-million (US GAAP).
ExcelStor is a subsidiary of Great Wall Technology (GWT), a publicly traded company on the Hong Kong Stock Exchange (0074.HK), headquartered in Beijing, China, which had 2006 revenue of $2,6-billion.