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VMETRO Acquires Micro Memory

August 28, 2007

Expanded capabilities increase VMETRO's ability to meet customer needs.


VMETRO and Micro Memory LLC announce that VMETRO has acquired 100% of the shares of Micro Memory. VMETRO is a leading provider of embedded computing, data recording, storage and protocol analyzer products for over 20 years. Micro Memory, a privately held U.S. based company with headquarters in Chatsworth, CA, has provided high performance board-level products for streaming signal and image processing, real time data acquisition, memory nodes, and Enterprise Network Storage for over 30 years.

The acquisition of Micro Memory is an element of VMETRO's growth strategy that increases VMETRO's capabilities and product offerings in existing and new markets. The addition of Micro Memory improves VMETRO's capabilities to serve existing defense and aerospace customers and further increases VMETRO's market diversification. This acquisition leverages the strengths of each company by combining VMETRO's world-wide presence, its two European design centers, and its strong sales and marketing infrastructure with Micro Memory's technology, its U.S. customer base, and its U.S. design center.

MicroMemory Micro Memory's real-time embedded system products will immediately add breadth and depth to VMETRO's embedded Digital Signal Processing (DSP) and high-performance data recording offerings. Micro Memory's proven Memory-Only Node products are well known in the industry as unique building blocks for adding bulk storage to DSP and Recording systems. The Micro Memory VITA 41 (VXS) products strengthen VMETRO's existing VXS leadership position. Both companies are heavily committed to the VITA 46/48 (VPX/VPX-REDI) standards; this commitment combined with Micro Memory's proven Serial RapidIO IP will bolster VMETRO's VPX product introduction.

In addition to providing VMETRO a broader embedded product portfolio, this acquisition enables further diversification into a new market sector for the company through sales of Micro Memory's Umem NVRAM cards. These products are solid-state, non-volatile random access PCI memory cards that increase performance while maintaining reliability in storage servers and appliances that are currently utilized by leading Tier I/II OEMs to satisfy applications in the rapidly growing segments of Enterprise Network Storage.

Adding development resources in the US market has been a clear goal for VMETRO. With this acquisition, VMETRO will leverage Micro Memory's US-based operations which will enable selling into programs where US Engineering and Manufacturing facilities are strongly favored- especially those programs that involve sensitive information subject to United States International Traffic in Arms Regulations (ITAR) which limit the involvement of non-US personnel. Additionally, VMETRO's sales offices in Europe and Asia will open up untapped markets for Micro Memory's product lines. With zero ramp-up time, the acquisition provides VMETRO with a highly experienced, U.S.-based engineering team with proven capabilities in producing complex embedded products. The combined entity can achieve a broader, more robust total product portfolio at a lower R&D cost than the two companies can achieve independently. By adding more products, VMETRO expects to improve its market position and increase sales opportunities.

"There is tremendous synergy in our new organization", said Christian Jebsen, CEO of VMETRO. "We are able to better serve the needs of our customers with our combined resources and capabilities than if we had continued to operate as two separate companies. We are also extremely excited about VMETRO gaining a design center in the U.S.; this will allow us to better address the needs of customers in our largest market, and handle the increasing demand for complete system solutions."


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