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Check Technology to Acquire Delphax Systems From Xerox

Press release from the issuing company

Check Technology Corporation, announced today that it has signed a definitive purchase agreement with Xerox Corporation to acquire the North American assets of Delphax Systems, a Xerox company, in a cash transaction. Specific financial terms will be disclosed at closing, which is expected in late December. Located in Toronto, Ontario, Delphax employs more than 200 people in the development, manufacture and distribution of print engines, print management software and a range of digital printing systems incorporating the company's proprietary electron-beam imaging technology. Delphax supplies the sophisticated high-speed Gemini print engine that drives Check Technology's flagship product, the Imaggia advanced digital document production system. In addition to giving Check Technology ownership of its core print engine technology and associated expertise, the acquisition is expected to add, after eliminations, approximately $30 million to the company's fiscal 2002 revenues and over $3.0 million in earnings before interest, taxes and depreciation. "This is a most significant event in our company's history,'' said Jay Herman, Check Technology's chairman and chief executive officer. "It not only strengthens our position in our served markets, but it represents a giant step in implementing our strategic plan for increasing our opportunities for market penetration beyond the check and financial document segment and enlarging our revenue base.