9/24/2002 - Performance Technologies announced it has completed an agreement to invest $1.5 million in Momentum Computer, a developer of specialized single board computer solutions for the data communications, telecom, military and aerospace markets.
"This is an excellent opportunity to invest in an early stage company addressing a specific segment of the embedded market that we feel is underserved," said Donald Turrell, president and CEO of Performance Technologies. "We chose to invest in Momentum because its management has an excellent track record of identifying emerging opportunities and meeting specific customer requirements through ongoing innovation."
Momentum Computer develops specialized single board computer products based on MIPS, PowerPC and UltraSPARC CPU architectures. The company fills an important need in the embedded platform market by offering a quick turnaround on design and delivery of custom processor and high-performance I/O modules. Momentum's product line is closely aligned but does not compete with the existing Performance Technologies embedded switching, access and signaling products, or the Ziatech Intel-based single board computer products, which are a new addition to Performance Technologies as part of the upcoming acquisition from Intel.
Based on the terms of this agreement, Performance Technologies will own a minority interest in Momentum Computer and will lend Momentum Computer $1 million to be used for working capital to advance its current product lines and to grow the company. Performance Technologies has the option to acquire the remaining ownership of Momentum during a future specified period.
"An investment from a highly reputable company like Performance Technologies provides Momentum with additional resources to continue its growth, and, more importantly, it provides Momentum's customers the assurance of long term stability," said Harry L. White, president of Momentum Computer. "This is always an issue for small companies dealing with larger firms, and our relationship with Performance Technologies removes that selling obstacle."
About Performance Technologies
Performance Technologies (NASDAQ:PTIX) is a global supplier of innovative, packet-based communications and networking equipment. With core competencies in embedded IP/Ethernet, wide area networking and SS7/IP interworking, we offer both hardware and software solutions vital to existing and emerging networks. Our proven products for embedded switching, network access and SS7 network replacement offer cost-saving benefits and time-to-market advantages to companies developing telecom, enterprise and military applications. Performance Technologies is headquartered in Rochester, New York. Additional engineering facilities are located in San Diego, California and Ottawa, Canada.
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