OZO Diversified Automation Inc. Announces Plan to Sell its Automation and Depaneling Business

Business Wire, Oct 6, 1998

DENVER--(BUSINESS WIRE)--Oct. 6, 1998--OZO Diversified Automation, Inc. (OTC:OZOA) announced today that it had reached a nonbinding agreement in principle to sell its automation and depaneling business to JOT Automation, Inc., the U.S. subsidiary of JOT Automation Group Oyj of Finland.

Founded in 1983, OZO Diversified Automation, Inc. manufactures automated depaneling, routing, and drilling machines for use in the production of printed circuit boards and related electronic subsystems. The Company's robotic workstations are used widely throughout the automotive, telecommunications, and consumer electronics industries with more than 400 systems installed worldwide. In addition, the Company has recently expanded its manufacturing and design capabilities to include custom automation solutions for complex materials handling applications.

"The sale of OZO to JOT Automation represents a tremendous opportunity for OZO's customers, employees, and shareholders," according to David J. Wolenski, OZO's President and Chief Executive Officer. Mr. Wolenski went on to say that "OZO is proud to become partners with a world-class company such as JOT Automation," and that the Company was "looking forward to capitalizing on the many synergies that exist between the two organizations." In recent months, OZO has been actively pursuing a strategic business combination that would allow the Company the ability to leverage its licensed technology and provide access to new markets, including Europe and the U.K.

JOT Automation Group Oyj is a global manufacturer of automation equipment for the printed circuit board assembly process. According to Mika Kettula, JOT USA President, "OZO's leading-edge depaneling technology is an ideal complement to JOT's robotic assembly cells and board handling products. The acquisition of OZO can now provide a unique range of products to customers worldwide." JOT is headquartered in Oulunsalo, Finland, and achieved sales of approximately US$35 million in 1997.

The proposed transaction, which is scheduled to close before the end of the year, is still subject to satisfactory due diligence, preparation of definitive agreements, and OZO shareholder approval among other standard closing conditions. Terms of the agreement were not disclosed. In 1997 OZO recorded net income of $123,000 against gross sales of $2.72 million.