Kyocera Mita sets stage for agressive document solutions technology development through strategic acquisition of Peerless´ intellectual property

Purchase of Intellectual Property, Assets To Spur Market Share Growth

10 January 2008

Kyocera Mita Corporation, a group company of Kyocera Corporation, and one of the world's largest manufacturers of office information equipment, including network-ready digital multifunctional products (MFPs) and printers, is acquiring $37 million USD in intellectual property (IP) and assets of Peerless Systems Corporation, as part of a strategic move to expand its global market share, as well as accelerate and strengthen its technological development

Through its award-winning ECOSYS technology, Kyocera Mita manufacturers and markets document solutions proven to be one of the most reliable, durable and cost efficient products in the industry. By incorporating Peerless’ IP and R&D directly within its own operations, Kyocera Mita will strengthen its competitive position and deliver additional product value and higher customer satisfaction to the end-user.

“We believe there are untapped, strategic opportunities to better serve today’s demanding business customer which can be captured through the advent of emerging printing technologies,” said Katsumi Komaguchi, president, Kyocera Mita Corporation. “Although we have been a collaborative partner of Peerless Systems for years, we can now more fully leverage such technologies, and the skills of the engineers who helped develop them, through the elevated position of operational strength this acquisition brings us.”

The company said it expects to announce new high speed color printers and MFPs based upon its acquisition in this year, and will continue to consider alternative software technologies based on customer demand. In the meantime, Peerless will continue to serve current and prospective OEM customers, as well as develop new IP for use in future products and services, under terms of the agreement.

“The business value of this engagement goes far beyond the IP and patents being added to Kyocera Mita’s portfolio,” said Michael Pietrunti, president and CEO, Kyocera Mita America. “We are strengthening our entire R&D process and pipeline to better compete in a crowded, commoditized market – the results of which will provide a higher degree of value and overall satisfaction for the end-user.”

The Peerless transaction is scheduled to close before June 30, 2008, and is subject to certain conditions including shareholder approval. Kyocera Mita plans to transfer approximately 40 Peerless employees who have been involved in the development of Kyocera Mita’s products. This team will report to Atsushi Yuki, president of Kyocera Technology Development, Inc., a research, design and testing facility of controller technology and printing software for Kyocera printers and multifunctional devices, and a subsidiary of Kyocera Mita America, Inc.

The transaction includes all IP and assets relative to Peerless’ digital imaging software offerings, as well as all of Peerless’ patents and specific fixed assets.

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