New Company Emerges with Global Ambitions in the Information Technology Industry

Beny Alagem, a prominent figure in the computer industry, has completed a transaction with AST Research, Inc., a subsidiary of Samsung Electronics. Alagem has acquired the AST brand name and an exclusive license to a comprehensive intellectual property portfolio. In return, AST Research will receive a minority stake in the newly formed company, AST Computers. This venture marks a significant development in the industry, as Alagem's team will leverage the AST brand and intellectual property to provide innovative products and solutions to small and medium-sized businesses, as well as the expanding home market.

Key Takeaways:

• Beny Alagem, former chairman and CEO of Packard Bell NEC, has acquired the AST brand name and intellectual property from AST Research, Inc., a subsidiary of Samsung Electronics.
• The new company, AST Computers, will focus on providing computer system solutions and innovative product offerings to underserved small and medium-sized businesses and the expanding home market.
• AST Computers aims to capitalize on the dramatic shift in the way individuals and businesses access information, purchase products, and communicate with each other.
• Over 50% of American homes still lack computers, presenting an untapped market opportunity for AST Computers.
• The company has invested substantially in the AST brand name and intellectual property, which will serve as the foundation for its global ambitions.
• AST Computers will leverage the Internet and its opportunities to offer sophisticated and effective design, manufacturing, sales, service, and support to its customer base.
• The company's streamlined organization will enable it to make timely decisions to achieve success and growth in the rapidly changing industry.
• Samsung Electronics, a leading manufacturer of semiconductors, will be an indirect strategic partner in AST Computers, providing a significant advantage for the new company.
• Beny Alagem's management team is poised to maintain its guiding force in shaping the industry as the company enters the new millennium.