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TEK DigiTel Forms Strategic
Alliance with Formosa Industrial Computing
Partnership to Jointly Develop Advanced IP Phone Systems
GERMANTOWN, MD - January 30, 2001 TEK DigiTel Corp. (OTC Bulletin Board: TEKI - news) today announced that is has formed a multi-tiered Strategic Alliance with Formosa Industrial Computing (FIC) of Taiwan. The terms of the agreement call for the companies to work together in the areas of new VoIP product development, manufacturing and sales and marketing.
Initially, TEK and FIC will work jointly towards developing an advanced IP Phone System. This product will target the Chinese and European markets and will be positioned as a full featured cost effective solution. TEK's role will be to design the software architecture, leveraging its expertise and building on the existing applications, while FIC will focus on the hardware development and production. The product is expected to be available for Beta testing in Q2 2001.
TEK will also engage FIC as a primary manufacturer of the existing V-Server iGATE and iPRO products. FIC is a leading manufacturer of Industrial Computers, Multimedia & Communications Devices, Industrial Automation Products, and Display Systems. Leveraging FIC's manufacturing and technical expertise will immediately boost TEK's sales capacity, product quality and lead times. FIC will also promote TEK's products through its existing sales channels in Taiwan, China, South America and Europe.
``We have entered into a business relationship with FIC to leverage their strength in hardware development and production as well as their established Asian marketing channels,'' commented Thomas Yang, COO and Head of Sales and Marketing for TEK.
``One of our top priorities this year is to enter into VoIP technology and development and TEK is the leader in the VoIP CPE equipment sector,'' commented Sharming Lin, CEO for FIC. ``Our sales channels are starting to show significant demand for this kind of product specifically in Asia and Europe.''
About FIC (http://www.formosa21.com)
Formosa Industrial Computing, Inc. (Formosa), a world-class manufacturer of electronic and computer equipment, was found in 1984 as a spun-off affiliate of First International Computer, Inc. -- one of the world largest OEM manufactures of PC motherboards and laptop and desktop computers. Formosa has grown rapidly to a now 250-employee company with an annual sale of over $40M. With its original business focus on the microcomputer technology for factory automation systems, Formosa has been expanding over the years into other business segments in the high-tech computer and electronic industry.
About TEK DigiTel Corporation (http://www.tekdigitel.com)
Based in Germantown, Maryland, TEK DigiTel Corporation delivers integrated CPE (Customer Premise Equipment) communications solutions optimized for use in SOHO, small- and medium-sized businesses. Working with Service Providers and OEM partners, TEK is focused on integrating fax- and Voice-over-IP (VoIP) technologies with conventional PBX systems and data routing devices to create a low-cost, easy-to-use Internet communications hub. Founded in 1998, TEK is headed by a management team with extensive related experience gained at leading manufacturers and service providers including IBM, Data General, Hughes, Orbital Communications, Bell Atlantic, and GTE.
Statements made in this press release that are not historical or current facts are ``forward-looking statements'' made pursuant to the safe harbor provisions of the Federal Securities Laws. Forward-looking statements represent management's best judgment as to what may occur in the future, but are subject to certain risks and uncertainties that could cause actual results and events to differ materially from those presently anticipated or projected.