Isonics Corporation
Isonics Corp. english
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ISONICS TO ACQUIRE SILICON-ON-INSULATOR WAFER BUSINESS
GOLDEN, CO (July 31, 2001) Isonics Corporation (NasdaqSC: ISON/ISONW) (OTCBB:
ISONL/ISONZ) and (Frankfurt: IO9) a leader in the development of isotopically
engineered semiconductor materials, has signed a letter of intent to acquire
the silicon-on-insulator (SOI) wafer business of Vancouver, Washington-based
Silicon Evolution, Inc.
In the letter of intent and subject to certain conditions, Isonics has agreed
to acquire the accounts receivable, contracts, raw materials, in-process
inventory, intellectual property, and fixed assets including clean rooms and
wafer manufacturing equipment, in exchange for 2 million shares of Isonics
common stock. Isonics will also assume certain liabilities associated with the
purchased assets. Founders and key management will become Isonics employees.
Additional purchase consideration of up to 1.6 million shares may be earned if
future financial results meet certain criteria.
Silicon Evolution Inc. (SEI) is a wafer technology company specializing in SOI
wafers for optical telecommunications, micro-electrical mechanical systems
(MEMS) and digital signal processors. Their technology has been successfully
applied to produce thick-film SOI wafers that have been qualified at a number
of notable customers. SEI was founded by Dr. Hans Walitzki and Kurt Dichmann
in 1999 as a spin-out from Wacker Siltronic, a leading silicon wafer company.
SEI has established a new manufacturing process that is less capital intensive
and requires fewer steps than traditional wafer production; therefore,
profitable operations can be achieved at lower production levels and with less
capital investment. SEI has an extensive intellectual property portfolio as a
result of the spin-out, and has filed eighteen patent applications of its own
to further expand and strengthen its technology base. More information on SEI
may be obtained at www.seiwafers.com.
James E. Alexander, Isonics Chairman & CEO commented. “Upon completion of the
transaction, Isonics will have the capability to generate near-term revenues
through the sales of SOI wafers, and we expect to reach profitability within 12
months. We plan to rapidly ramp natural SOI wafer sales and begin sampling Si-
28 SOI wafers soon after completion of this transaction.”
Dr. Hans Walitzki, SEI founder and Chief Technical Officer noted, “I believe
that there is much synergy between SOI wafers and high thermal conductivity
silicon-28. Applications such as microprocessors, digital signal processors,
and micro optical electro-mechanical systems (MOEMS) are high priority targets
for initial marketing. Our confidence in the viability of silicon-28 and our
own ability to capture a substantial share of the SOI market is evidenced by
our willingness to accept a large part of the purchase price based on our
future performance. I believe the combination of SEI and Isonics will create a
company which will generate great interest in the semiconductor industry.”
Mr. Alexander continued, “The stock market is putting a high price on SOI
companies – presently valuing them at 14 to 28 times annual revenues. The high
valuation ratio is a result of the rapidly growing demand for SOI wafers, a
fact recently noted by Gartner Dataquest in their February 2001 issue of Solid
State Technology magazine. Analysts there estimated that the SOI market was
$101 million in 1999, and projected SOI wafer demand to grow at a 48% CAGR
between 1999 and 2005, reaching $1.068 billion. If we execute on our plan, we
believe the market will recognize our new potential value and put it in line
with other advanced wafer companies. Other public companies in the SOI
business are; Ibis Technologies (Nasdaq: IBIS), an SOI wafer and equipment
manufacturer which has a market capitalization of $70 million and recently
reported quarterly revenue of $1.2 million; Analog Devices (NYSE: ADI), who
paid $150 million cash in 2000 to acquire BCO, a Northern Ireland-based SOI
company which had last reported quarterly revenues of $1.5 million; and SOITEC,
the leading independent SOI wafer manufacturer, which is traded on the French
Nouveau Marche. Its high revenue growth rate and revenues of $36 million for
the year ended March 31, 2001, have resulted in a market capitalization of
about $1 billion.”
About Isonics Corporation
Isonics is a world leader in isotopically engineered materials and produces
isotopically pure silicon-28 chemicals and wafers for the semiconductor
industry. Isonics also markets and sells stable isotopes for the health care
industry such as carbon-13 for diagnostic breath tests and drug design, and
oxygen-18 for positron emission tomography (PET) imaging. Stable isotopes can
be thought of as ultra pure materials. For additional information visit
www.isonics.com.
Isonics Corporation James E. Alexander 303-279-7900
Cameron Associates Michael Brod 212-245-8800 michael@cameronassoc.com
Except for historical information contained herein, this document contains
forward-looking statements within the meaning of the Private Securities
Litigation Reform Act of 1995. These statements involve known and unknown risks
and uncertainties that may cause the Companys actual results or outcomes to be
materially different from those anticipated and discussed herein, and which may
result in the parties being unable or unwilling to complete the transaction
described herein. Further, the Company operates in industries where securities
values may be volatile and may be influenced by regulatory and other factors
beyond the Companys control. Other important factors that the Company believes
might cause such differences are discussed in the risk factors detailed in the
Companys 10-KSB for the year ended April 30, 2000, and its quarterly report on
Form 10-QSB for the nine months ended January 31, 2001, both as filed with the
Securities and Exchange Commission, which include the Company’s cash flow
difficulties, dependence on significant customers, and rapid development of
technology, among other risks. In assessing forward-looking statements
contained herein, readers are urged to carefully read all cautionary statements
contained in the Companys filings with the Securities and Exchange Commission.
end of message, (c) DGAP 31.07.2001
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