SANTA ANA, Calif., Aug. 8, 2005 (PRIMEZONE) -- SimpleTech, Inc.(r) (Nasdaq:STEC), a designer, manufacturer and marketer of custom and open-standard memory and storage solutions, today announced the acquisition of privately-held Memtech SSD, Corp.(tm) ("Memtech"), a leading provider of ultra-rugged and reliable solid state Flash drives. The acquisition highlights SimpleTech's commitment to the OEM Flash market and creates one of the most comprehensive offerings of solid state drives ("SSDs") and other Flash-based solutions for industrial and military applications. SimpleTech will leverage its resources to integrate Memtech's engineering and manufacturing functions, and will continue to market and sell Memtech Flash products under the Memtech brand. As a result, Memtech's customers will have access to one of the broadest industrial Flash product portfolios and advanced engineering design expertise.
"As a leader in the SSD market, Memtech has developed relationships with major OEM and military customers and brings many years of experience designing advanced industrial Flash solutions," said Manouch Moshayedi, chairman and chief executive officer at SimpleTech. "SimpleTech plans to add sales and marketing resources to the existing Memtech team and significantly expand the existing product line offered to Memtech's OEM customers."
"This transaction illustrates SimpleTech's commitment to strategically invest capital into its core lines of business by pursuing select acquisitions. By adding complementary customers, expertise, and products to our expanding SSD portfolio, SimpleTech will further solidify its leading position in the target sector," said Luis Morales, vice president of corporate development at SimpleTech.
About Memtech SSD, Corp.
Memtech SSD, Corp. has served hundreds of solutions integrators and contractors in the government, military, aerospace, energy, manufacturing, transportation and telecommunications sectors. Its solid state storage products are custom-built and designed for low power consumption in critical operating conditions, built to withstand extreme temperature, pressure, moisture, shock, vibration and power loss.
About SimpleTech, Inc. (Nasdaq:STEC)
SimpleTech, Inc. designs, manufactures and markets custom and open-standard memory and storage solutions based on Flash, DRAM and hard disk drive technologies. With headquarters in Santa Ana, California, the company offers a comprehensive line of more than 2,500 products and specializes in developing high performance and high-density memory modules, memory cards and storage products. For more information, visit the company's Web site at www.simpletech.com
Safe Harbor
This release may contain forward-looking statements that involve risks and uncertainties, including, but not limited to, statements concerning the acquisition creating one of the most comprehensive offering of solid state drives and other Flash-based solutions for industrial and military applications, SimpleTech's integration plans for Memtech, plans to continue marketing and selling Memtech Flash products under the Memtech brand, availability of expanded product line to Memtech's customers and SimpleTech's leadership position. Actual results may differ materially from the results predicted. Important factors which could cause actual results to differ materially from those expressed or implied in the forward-looking statements are detailed under "Risk Factors" in filings with the Securities and Exchange Commission made from time to time by SimpleTech, including its Annual Report on Form 10-K, its quarterly reports on Form 10-Q, and its current reports on Form 8-K. In addition, other factors that could cause our actual results to differ materially from those expressed or implied in the forward-looking statements in connection with SimpleTech's acquisition of Memtech include, but are not limited to, the risks inherent in acquisitions of technologies and businesses, including the timing and successful completion of technology and product development through volume production, integration issues, costs and unanticipated expenditures, Memtech products may not perform in the manner anticipated, customer demand for such products may not grow as projected, changing relationships with customers, suppliers and strategic partners, potential contractual, intellectual property or employment issues, accounting treatment and charges, and the risk that anticipated benefits are not realized. SimpleTech undertakes no obligation to release publicly any revisions to any forward-looking statements to reflect events or circumstances occurring after the date hereof or to reflect the occurrence of unanticipated events.
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