Pat Verderico John Danforth Creative Labs, Inc. Creative Labs, Inc.
Creative terminated the merger agreement under an express provision of the agreement permitting it to do so at its sole discretion. The reasons for this election include the negative reaction of the financial markets and certain major shareholders to the merger -- which, in turn, were based on the substantial additional debt required for the merged entity, the perceived effects of the merger on the combined company's future results of operations, and the perceived demands on management resources it would create. These concerns and others that arose subsequent to the execution of the merger agreement, convinced management that the potential short term disruptions caused by the proposed merger would be greater than anticipated and would not be adequately off-set by anticipated long term strategic gains.
The Board has authorized management to pay the breakup fee stipulated by the Agreement if so requested by Reveal and if management believes such a breakup fee is called for. The Directors do not anticipate any material adverse consequences resulting from termination of the agreement or any payment of the breakup fee.
Creative Technology Ltd. develops, manufactures and markets a family of sound, video, software telephony multimedia products for PCs under the Blaster family name, and the ShareVision line of desktop video conferencing products for Macintoshes and PCs. The company's Sound Blaster® sound platform enables PCs to produce high-quality audio for entertainment, educational, music and productivity applications, and has been accepted as the industry standard sound platform for PC-based software.
Creative Technology Ltd. was incorporated in 1983 and is based in Singapore. Creative Technology's U.S. subsidiaries include Creative Labs, Inc., E-mu Systems, Inc., Digicom Systems, Inc. and ShareVision Technology, Inc. Creative also has other subsidiaries in Australia, China, Europe, Japan, Malaysia, Singapore, South Korea and Taiwan. The company's stock is traded on Nasdaq under the symbol CREAF and on the Stock Exchange of Singapore.
Sound Blaster is a registered trademark and Blaster is a trademark of Creative Technology Ltd. E-mu is a registered trademark of E-mu Systems, Inc. and ShareVision is a registered trademark of ShareVision Technology, Inc. All other products mentioned herein are trademarks of their respective owners and are hereby recognized as such.