MicroTouch Launches New Worldwide Channel Strategy; Authorizes Distributors Avnet Applied Computing, JACO and EMJ to Capture Share of High-Growth LCD Market

Business Wire, May 8, 2000

Business/Technology Editors

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METHUEN, Mass.--(BUSINESS WIRE)--May 8, 2000

Distributors to support U.S., Mexico, and Canada, enabling direct

sales team to focus on growing OEM customer base.

MicroTouch Systems, Inc. (NASDAQ: MTSI), the global leader in touch-input solutions, today announced that it has signed distributor agreements with Avnet, Inc. (NYSE: AVT), JACO Electronics, Inc., and EMJ Data Systems Ltd. as part of a new, worldwide channel strategy. The partnerships are designed to enhance customer support capabilities and position the company to capitalize on the rapidly growing flat-panel display market.

MicroTouch's three-pronged channel strategy features distributor relationships for market penetration and customer support, the Monitor Alliance Partners program for "MicroTouch-enabled" branding of OEM monitor products, and enhanced e-commerce capabilities to expand points of customer contact and maximize distribution resources.

"Our distributor and partner programs will provide us the field presence to substantially expand our sales and support capability, and will open up new streams of business in established and high-growth markets including flat-panel displays, CRTs and embedded systems," said Steve Kreindler, MicroTouch director of channel and market development. "We will complement our traditional distribution approach with a comprehensive e-business strategy which includes enhancements to TouchStore.com, our Internet commerce site, and distributor extranet sites."

High-Growth Market Opportunity

Recent reports from market research firms indicate that the LCD market represents a tremendous growth opportunity for MicroTouch. Stanford Resources projects the U.S. flat-panel monitor market will grow by 325% this year, from 296,000 to 711,000 units. On a global basis, International Data Corporation (IDC) predicts the TFT technology segment of the LCD market will grow at a rate of 26% in 2000, reaching 28 million total panels by year-end.

Distinct Distributor Advantages

MicroTouch has enlisted authorized distributors Avnet Applied Computing (AAC), an operating group of Avnet, Inc., JACO Electronics, and EMJ Data Systems for their dedicated expertise in the flat-panel arena, and for their dominance in the U.S., Mexico, and Canada markets. MicroTouch plans to engage additional authorized distributors to support Latin America, Europe, Asia Pacific, and Japan. This global network of authorized distributors will free the company's direct sales force to focus on its Monitor Alliance Partners and growing OEM customer base.

"We anticipate a substantial percentage of the burgeoning LCD market will be touch-enabled," said Barry Waxman, MicroTouch vice president of sales. "In addition to providing the desired geographic presence we're looking for in North America and Mexico, Avnet Applied Computing, JACO, and EMJ each brings the demonstrated expertise and commitment to the flat-panel industry we need in order to capture our share of this significant market."

"We expect touch technology to play a significant role in the growing demand for flat-panel displays," said Troy Blanchette, AAC's vice president of marketing. "We are pleased to be able to offer MicroTouch product solutions to our OEM customers."

"Our flat-panel focus has been a successful strategy since we first implemented it a year ago," said Rick Walsh, director of JACO's Flat-Panel Display Group. "MicroTouch's touchscreen product line is an important addition to our flat-panel components inventory."

According to EMJ President Jim Estill, "Our customers are increasingly looking for touchscreens. In our evaluation of touch technology providers, MicroTouch is a clear value winner for EMJ and our customers."

A key element of MicroTouch's distribution strategy is its Monitor Alliance Partners program. This branding program builds value for the "MicroTouch-enabled" mark and encourages monitor OEMs to display the mark to indicate that their products feature MicroTouch's high quality touch technology. Current partners include NEC, IBM, Mitsubishi, Samsung, Compaq, and Princeton Graphic.

TouchStore.com is MicroTouch's e-commerce Internet site devoted exclusively to the sale of touchscreen monitors and related products. TouchStore.com complements MicroTouch's primary distribution channels by handling smaller-quantity transactions electronically, allowing MicroTouch direct salespeople and authorized distributors to focus more on OEM partners and higher-volume opportunities. Expansion to TouchStore.com includes international sites and partner solutions.

About Avnet

Avnet Applied Computing (AAC) is an operating group of Avnet, Inc. (NYSE:AVT). AAC offers off-the-shelf solutions, including platforms and servers, boards and modules, mass storage, peripherals, microprocessors, flat-panel displays and embedded operating systems. Supported by a highly trained, dedicated technical sales staff, AAC provides engineering services, software, leadership products, supply-chain management solutions and systems integration services.