Lexar Media Gets New CEO, Will Shut Down Printroom.com, Reduce Staff by 27%
Press release from the issuing company
FREMONT, Calif., July 19, 2001 –Lexar Media, Inc. a leading designer, developer and marketer of digital film and connectivity products for the digital photography market, today announced that it has promoted Chief Operating Officer Eric Stang to President and Chief Executive Officer. John Reimer, who has served as Lexar Media’s President and Chief Executive Officer since 1997 was elected Chairman of the Board and will continue to provide his strategic vision to the company.
“Building Lexar Media into a successful public company has been an outstanding opportunity and a tremendously rewarding experience,” said Mr. Reimer. “I recruited Eric to Lexar Media shortly before our initial public offering because of Eric’s operational strengths and leadership qualities, and I have groomed him to lead Lexar Media to the next level. Over the last several months, we have jointly developed a plan to streamline and reorganize the company to focus on our core competitive strengths as we continue on our drive to profitability. I am confident that Eric is the right person to complete the job that I began.”
Eric Stang stated, “John is a visionary in the field of digital photography. He has played an instrumental role in Lexar Media’s evolution and I look forward to his continuing support as we continue the process he began. I am excited about the opportunity to lead Lexar Media on its drive to profitability. I believe that our significant patent portfolio, strong brand and relationships with leading strategic partners have us well positioned for future growth. The entire management team and all of the company’s employees are committed to build Lexar Media into the leading global designer, developer and marketer of digital film and connectivity solutions for the digital photography market.”
Stang continued: “John and I have formulated a strategy over the past several months to achieve profitability by the fourth quarter of 2001. This strategy includes an improved cost structure from the previously announced Samsung partnership, as well as a reduction in force and the discontinuation of our Printroom.com operations. We believe these steps will enable us to focus on our core competitive strengths and position ourselves for future profitable growth.”
Lexar Media will implement an approximately twenty seven percent reduction in its work force. Additional information and financial results for its second quarter ended June 30, 2001 will be provided in the conference call scheduled for Wednesday, July 25, 2001, after the market close.
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