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Scitex Ends JV with VIO, Karat - Invests in RealTimeImage, PrintLife & Jemtex

Press release from the issuing company

Scitex Says VIO Management to Buy Shares Owned by BT and Scitex Ends JV with Karat, Karat to Buy Scitex Shares in JV Details Investment in Jemtex Ink Jet Printing, RealTimeImage and PrintLife 3/1/01 (WhatTheyThink) According to Scitex earnings statement today and sources familiar with their situation, the company has been very busy in the last quarter. Yoav Z. Chelouche, President and Chief Executive Officer said 2000 marked the “end of an exciting and historic year for Scitex as we substantially changed the model and composition of the business.” While Scitex announced plans to divest of their Joint Ventures with Karat and VIO, the company made investments in RealTimeImage and PrintLife. Mr. Chelouche said their strategy of investing in high-growth segments of the digital markets will continue. Specifically, Scitex will conclude its joint venture with Koenig & Bauer AG (KBA). According to their release, “Since the Creo transaction and DRUPA, it has become clear that the best future for Karat lies in a closer integration with KBA's production and distribution activities. Under the terms of the agreement, Scitex will sell its share of Karat to KBA in return for future performance related payments.” KBA will handle all manufacturing, sales and support of Karat Digital Press machines. Also, according to Scitex, VIO management will buy out British Telecom and Scitex for complete control of the company. An agreement in principle has already been signed. Scitex will retain a right to obtain a future interest in the company. However, sources close to VIO and Scitex said negotiations are ongoing and the structure may be different than explained in Scitex’s Earnings statement. Scitex made a follow-on $2 million investment as part of a $9 million third round of funding in RealTimeImage at a post-money valuation of $65 million. Scitex has invested $5.3 million, in three rounds, and owns 15.9% of the company. Scitex has committed to invest $5.4 million in Jemtex Ink Jet Printing, of which $2.6 million was transferred to the company in the fourth quarter. Scitex owns 35.9% of the company and has an option to purchase additional shares, to increase its stake to 51%. PrintLife has developed a technology and service that enables users to send images from digital cameras over the Internet, to be printed in high quality albums. Scitex invested $4.6 million in the company and owns 13.7% of its shares.