LanOptics to Increase Its Equity Interest in EZchip Technologies
December 14 2006 - 5:24PM
PR Newswire (US)
YOKNEAM, Israel, Dec. 14 /PRNewswire-FirstCall/ -- LanOptics Ltd.
(NASDAQ:LNOP), a provider of network processors, announced today
that two principal shareholders, as well as another shareholder, of
its subsidiary EZchip Technologies Ltd. have elected to exchange
all of their shares of EZchip for shares of LanOptics. The exchange
is being conducted in accordance with a previously disclosed
exchange right agreement entered into in 2003 among LanOptics,
EZchip and the minority shareholders of EZchip. The exchanges are
expected to be completed by the end of 2006. LanOptics will acquire
the equivalent of 15,512,934 EZchip ordinary shares in exchange for
the issuance of 3,878,234 LanOptics ordinary shares. The resulting
dilution in each LanOptics shareholder's percentage of ownership
will be offset by the increase in LanOptics' holdings in EZchip. As
a result of the exchanges, LanOptics will increase its ownership
interest in the outstanding share capital of EZchip from
approximately 60% to approximately 78%. LanOptics' business
consists exclusively of the business of EZchip, a company that is
engaged in the development of high performance network processors.
This exchange transaction represents another step in LanOptics'
long-term plan to acquire 100% ownership of EZchip, a plan that was
authorized by LanOptics' shareholders in April 2003. LanOptics
believes that the increase in its percentage ownership in EZchip
should increase the value of LanOptics and may result in greater
benefits to LanOptics' shareholders over the long-term. LanOptics
also believes that it is desirable to rationalize its corporate
structure by unifying the shareholdings in the two companies and
that such unification will also allow various efficiencies in the
operation of the businesses. Following consummation of the
exchanges that are being announced today, LanOptics will seek to
further increase its holdings in EZchip by pursuing similar
exchanges with the two remaining EZchip shareholders. This press
release does not constitute an offer by LanOptics to purchase any
EZchip shares nor does it constitute an offer to sell any LanOptics
shares. About LanOptics LanOptics is focused on its subsidiary
EZchip Technologies, a fabless semiconductor company providing
highly integrated 10-Gigabit and 5-Gigabit network processors.
EZchip's network processors provide the flexibility and integration
that enable triple-play data, voice and video services in systems
that make up the new Carrier Ethernet networks. Flexibility and
integration make EZchip's solutions ideal for building systems for
a wide range of applications in telecom networks, enterprise
backbones and data centers. For more information on EZchip, visit
the web site at http://www.ezchip.com/ For more information on
LanOptics, visit the web site at http://www.lanoptics.com/ "Safe
Harbor" statement under the Private Securities Litigation Reform
Act of 1995: This release contains forward looking statements that
are subject to risks and uncertainties, including, but not limited
to, the impact of competitive products, product demand and market
acceptance risks, customer order cancellations, reliance on key
strategic alliances, fluctuations in operating results, delays in
development of highly-complex products and other risks detailed
from time to time in the Company's filings with the Securities and
Exchange Commission. These risks could cause the Company's actual
results for 2006 and beyond to differ materially from those
expressed in any forward looking statements made by, or on behalf
of LNOP. DATASOURCE: LanOptics Ltd. CONTACT: Dror Israel, CFO of
LanOptics Ltd. Israel, +972-4-959-6666, Web site:
http://www.lanoptics.com/ http://www.ezchip.com/
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