CBM America Corp. and Irvine, Calif.-Based Citizen America Corp. Unite to Form New Company, Citizen Systems America

Business Wire, Feb 1, 2005

TORRANCE, Calif. -- Formation of New Torrance, Calif.-based Entity Seen as Move Toward Technology Convergence, Reinforcing Strong Citizen Brand Identity

CBM America Corporation, a Torrance, Calif.-based company and exclusive sales/marketing agent for Japan CBM Corporation, and Citizen America Corporation, based in Irvine, California, announce the union of its two U.S.-based operations and the formation of a new entity named Citizen Systems America Corporation.

Citizen Systems America will be located in Torrance, Calif. at the facility currently occupied by CBM America and have responsibility for sales in the Americas of the following product lines:

--Thermal and impact receipt printers

--Mini printer mechanisms and control boards

--Portable printers

--Barcode printers

--Impact dot matrix and line printers

--Quartz crystals and oscillators

--Computer storage products

Combined 2004 sales for all product lines are estimated at $50 million. The formation of the new company will be completed by March 31, 2005. "The creation of this new company, which joins both U.S. operations, is a move that both exploits the synergy between the two companies and realizes greater operational efficiencies," said Gregg Gallagher, Executive Vice President for CBM America Corporation. "The timing is right because Citizen produces the world's best mobile, receipt, bar code and impact printers. We are extremely excited about the formation of Citizen Systems America, and are confident that it will serve to reinforce Citizen's global brand image of product excellence."

On January 27, 2005, Citizen Watch Co., Ltd. announced the merger of its Information & Communication Products lines of business within the Citizen Group. The new Information & Communication Products company, Citizen Systems Japan Co., Ltd. will be established on April 1, 2005, as a joint entity with Citizen's wholly-owned subsidiary, Japan CBM Corporation.

Citizen has continually worked on the structural reform of the Citizen Group in order to establish a system that can quickly and accurately respond to the market, as well as raise shareholder value by strengthening the development and competitiveness of each business. As part of this reform, Citizen has been implementing the integration of development, production and sales of each business within the Citizen Group.

Citizen has determined that a huge positive impact will be realized from integrating the functions of the various companies lines of business and that as a result, its operations will become more competitive and synergies will be realized between its marketing, product development and sales organizations. It is also projected that as more resources of the Citizen Group are restructured, the overall efficiency of Group management will improve, providing even greater shareholder value. For more information you can call CBM America Corporation's headquarters at 363 Van Ness Way, Suite 404, Torrance, CA 90501, 310-781-1460. You can also visit CBM America Corporation's Web site at http://www.cbma.com. Citizen America Corporation is located at 2102 Alton Parkway Unit A, Irvine, CA 92606, 800-258-8529. You can also visit Citizen America's website at http://www.citizen-america.com.