Gentner Sells Remote Facilities Management Business to Burk Technology

Apr 16, 2001, 01:00 ET from Gentner Communications Corp.

    SALT LAKE CITY, April 16 /PRNewswire/ -- Gentner Communications Corp.
 (Nasdaq:   GTNR) today announced the sale of its Remote Facilities Management
 (RFM) business to Burk Technology (Littleton, Mass).  The sale enables Gentner
 to focus on growing its core conferencing business and makes Burk the leading
 provider of facility control systems to the broadcast market.  Gentner will
 continue to supply telephone interface equipment to the broadcast market.
     Under the terms of the agreement, Burk will pay Gentner $3.2 million,
 including $750,000 at closing, $1.75 million in the form of a secured,
 subordinate promissory note, and a $700,000 commission earned on incremental
 growth of the RFM product line.  Gentner and Burk will work together over the
 next several months to help ensure that the transaction adds value to both
 companies, and that their customers are well supported.  Thereafter, existing
 Gentner RFM customers will receive continued technical support from Burk.
     "We are pleased to have reached such a mutually beneficial agreement,"
 said Fran Flood, president and chief executive officer of Gentner.  "While RFM
 is the heart of Burk's business, it has become less of a focus than
 conferencing at Gentner and has not been the beneficiary of resources
 necessary to achieve growth in line with corporate objectives.  As a result,
 RFM revenue has been flat for the past seven quarters.
     "By divesting the RFM division we can better allocate our human and
 capital resources toward strengthening our conferencing business," stated
 Flood.  "For the first six months of fiscal 2001, RFM sales accounted for
 8 percent of total revenue, or $1.7 million.  We believe that the reallocation
 of resources to our core business will enable us to easily compensate for any
 lost revenue over the long term."
     "This is a good deal for both companies and for broadcasters," said Peter
 Burk, president of Burk Technology.  "Burk and Gentner products are well
 differentiated, offering a wide range of choice for group owners and
 call-letter broadcasters.  With the addition of the Gentner line, we will be
 able to expand our development efforts, bringing technological advancements to
 market faster.  We look forward to a continued alliance with Gentner as we
 focus on our individual core competencies."
     Details of the sale will be discussed during Gentner's third quarter
 earnings call, which is scheduled for Tuesday, April 17, 2000, at 11:15 a.m.
 Eastern time.  A live Webcast of the call can be accessed by visiting
 www.gentner.com and clicking on "Q3 Earnings Webcast."
 
     About Gentner
     Gentner Communications Corp. (www.gentner.com) develops, markets and
 distributes products and services to the professional communications,
 broadcast, business and consumer markets.  Designed to help lower the cost of
 doing business by reducing the need for travel, Gentner's products and
 services include audio and videoconferencing systems, and a full suite of
 teleconferencing services, including full-service conference calling, Instant
 Access Conference Calling(TM), and Webconferencing.  Other offerings include
 sound reinforcement products, telephone interface products and assistive
 listening systems.
 
     About Burk
     Burk Technology (www.burk.com) has been building broadcast facility
 control systems since 1985.  Burk offers innovative approaches to total
 station control and operation, offering efficient solutions for consolidated
 broadcasters.  Burk products are manufactured to the highest quality standards
 in an ISO-9001-certified facility in Littleton, MA.  Worldwide distribution is
 through major broadcast distributors.
 
     Forward Looking Disclaimer
     To the extent any statement presented herein deals with information that
 is not historical, including statements regarding the success of the
 transaction for either company and Gentner's ability to recover lost revenue,
 such statement is necessarily forward-looking.  As such, it is subject to the
 occurrence of many events outside Gentner's control that could cause Gentner's
 results to differ materially from those anticipated.  Please see the risk
 factors contained in Gentner's most recent 10-KSB filed with the SEC.
 
 

SOURCE Gentner Communications Corp.
    SALT LAKE CITY, April 16 /PRNewswire/ -- Gentner Communications Corp.
 (Nasdaq:   GTNR) today announced the sale of its Remote Facilities Management
 (RFM) business to Burk Technology (Littleton, Mass).  The sale enables Gentner
 to focus on growing its core conferencing business and makes Burk the leading
 provider of facility control systems to the broadcast market.  Gentner will
 continue to supply telephone interface equipment to the broadcast market.
     Under the terms of the agreement, Burk will pay Gentner $3.2 million,
 including $750,000 at closing, $1.75 million in the form of a secured,
 subordinate promissory note, and a $700,000 commission earned on incremental
 growth of the RFM product line.  Gentner and Burk will work together over the
 next several months to help ensure that the transaction adds value to both
 companies, and that their customers are well supported.  Thereafter, existing
 Gentner RFM customers will receive continued technical support from Burk.
     "We are pleased to have reached such a mutually beneficial agreement,"
 said Fran Flood, president and chief executive officer of Gentner.  "While RFM
 is the heart of Burk's business, it has become less of a focus than
 conferencing at Gentner and has not been the beneficiary of resources
 necessary to achieve growth in line with corporate objectives.  As a result,
 RFM revenue has been flat for the past seven quarters.
     "By divesting the RFM division we can better allocate our human and
 capital resources toward strengthening our conferencing business," stated
 Flood.  "For the first six months of fiscal 2001, RFM sales accounted for
 8 percent of total revenue, or $1.7 million.  We believe that the reallocation
 of resources to our core business will enable us to easily compensate for any
 lost revenue over the long term."
     "This is a good deal for both companies and for broadcasters," said Peter
 Burk, president of Burk Technology.  "Burk and Gentner products are well
 differentiated, offering a wide range of choice for group owners and
 call-letter broadcasters.  With the addition of the Gentner line, we will be
 able to expand our development efforts, bringing technological advancements to
 market faster.  We look forward to a continued alliance with Gentner as we
 focus on our individual core competencies."
     Details of the sale will be discussed during Gentner's third quarter
 earnings call, which is scheduled for Tuesday, April 17, 2000, at 11:15 a.m.
 Eastern time.  A live Webcast of the call can be accessed by visiting
 www.gentner.com and clicking on "Q3 Earnings Webcast."
 
     About Gentner
     Gentner Communications Corp. (www.gentner.com) develops, markets and
 distributes products and services to the professional communications,
 broadcast, business and consumer markets.  Designed to help lower the cost of
 doing business by reducing the need for travel, Gentner's products and
 services include audio and videoconferencing systems, and a full suite of
 teleconferencing services, including full-service conference calling, Instant
 Access Conference Calling(TM), and Webconferencing.  Other offerings include
 sound reinforcement products, telephone interface products and assistive
 listening systems.
 
     About Burk
     Burk Technology (www.burk.com) has been building broadcast facility
 control systems since 1985.  Burk offers innovative approaches to total
 station control and operation, offering efficient solutions for consolidated
 broadcasters.  Burk products are manufactured to the highest quality standards
 in an ISO-9001-certified facility in Littleton, MA.  Worldwide distribution is
 through major broadcast distributors.
 
     Forward Looking Disclaimer
     To the extent any statement presented herein deals with information that
 is not historical, including statements regarding the success of the
 transaction for either company and Gentner's ability to recover lost revenue,
 such statement is necessarily forward-looking.  As such, it is subject to the
 occurrence of many events outside Gentner's control that could cause Gentner's
 results to differ materially from those anticipated.  Please see the risk
 factors contained in Gentner's most recent 10-KSB filed with the SEC.
 
 SOURCE  Gentner Communications Corp.

RELATED LINKS

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