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Agfa Will Not Sell Products Through Distribution Powerhouse, Enovation

Press release from the issuing company

12/3/01 (WhatTheyThink.com) Sources at Agfa and Enovation confirm that Agfa will not distribute their products through the newly formed distribution giant. Enovation is a wholly owned subsidiary of Fuji Photo Film U.S.A. Fuji created the entity by acquiring PrimeSource, Heartland Imaging and Graphic Systems in September. Enovation is the largest distributor of equipment, consumables and technical services to the graphic communications industry, representing more than 300 suppliers, 60 branch locations and $800 million in revenue. The company employs more than 1,000 people. In October, George Tanaka, President of Fuji Photo Film U.S.A said Enovation was an extension of their commitment to the distribution channel. He said Enovation would ensure that customers received products from a wide range of manufacturers. Fuji competes with Agfa and other industry suppliers in several product areas. Agfa did not believe their products would be “well represented” by Enovation because of Fuji’s ownership. Jim Mullan, Enovation’s President and former CEO of PrimeSource, told WhatTheyThink.com last week that the decision was unfortunate. Mullan declared their commitment to servicing printers in an objective way and is determined to have a diverse and best of class product line. Mullan said other suppliers have been very supportive of Enovation. WhatTheyThink.com will publish a rare and exclusive interview with Jim Mullan on 12/4/01. The interview provides more insight about Agfa’s decision and details challenges in the digital printing market, his adjustment to a new culture and strategies for printers when making capital investments.

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