EmergeCore Signs $2.4 Million Contract with DTC for IT-100 IT in a Box

4/5/2004 - Following last week's announcement of a localized version for Japan of the IT-100 network appliance for small business and branch offices, EmergeCore Networks announced its first major distribution agreement in Japan. EmergeCore announced a non-exclusive $2.4 million contract with leading Japanese distributor DTC (Digital Technologies Corporation).

DTC is one of Japan's largest providers of high-tech products, producing revenue of more than $220 million per year. Prior to this distribution agreement, DTC also worked closely with EmergeCore in the actual development of the Japanese version of the IT-100.

EmergeCore's IT-100 has achieved tremendous sales and market response in the U.S. market. Early distribution partners in the U.S. have quickly sold their initial inventories, and the company is moving quickly to ramp up its manufacturing as well as to develop additional localized international versions for release in Q2 and Q3.

"The IT-100 is an ideal product for the Japanese market," said Ikuo Sakiyama, president and CEO of DTC. "We were very impressed with this innovative new product, as well as the early success we see this product having in the U.S. We are pleased to be the first distributor to introduce this level of functionality to Japan and to the vast small business market we serve."

"We are particularly pleased to be working with such an ideal partner for our entry into this important market," said Dave Brown, EmergeCore president and CEO. "In addition to being one of Japan's most successful distributors, DTC has played a partnership role in actually helping us develop the best possible version of the IT-100 for Japan."

Brown notes that Japan is second only to the U.S. in total population with Internet connection. In many cases, small businesses and households may purchase or lease the IT-100 from their regional Internet Service Providers (ISPs), and this distribution contract with DTC will play an important role in providing the IT-100 to ISP partners in Japan. Brown notes that broadband (ADSL) growth is also very strong in Japan, with current presence in 9.4 million (20 percent) of all Japan households.

The IT-100 product combines 20 gigabytes of storage Express Setup, Multiple Domains, Web Server, FTP Server, File Server, Alarms, Proxy Server, NAT, 4 Port Switch, Website Builder, eCommerce, Upgrade, Router, Domain Users, DNS Server, Email Server, DHCP Server, Statistics, Firewall, Wireless Access Point, Backup/Restore and VPN services in a single US$1,395 device.

For small to medium-sized businesses (SMB) or branch offices, the IT-100 eliminates the need for costly IT support. Even a non-technical person can set up and manage the IT-100 through the CoreVista Web® browser interface. There is no software installation required.

The GUI windows-like interface of the CoreVista Web software is so simple even a non-technical staff member could set up the network in minutes. The resulting network can support PCs, Macintosh workstations and Unix machines-basically any device with an Ethernet or wireless access point, including laptops, Tablet PCs and PDAs.

About EmergeCore
Founded in September 2000, EmergeCore Networks is focused on the further development of "IT IN A BOX"®, IT-100 all in one networking solutions for small business and branch office customers. To reduce costs and simplify IT solutions, small businesses are focusing on simple, easy to manage technologies. EmergeCore Networks developed the IT-100 specifically to address the infrastructure technology needs of the small business customer. The IT-100 all in one IT solution provides the support, services and functionality required for the small business owner.

EmergeCore is a private company based in Boise, Idaho. For more information about EmergeCore, readers can visit the company's website at www.emergecore.com.

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