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Translated by: Giorgio Gomelsky (email@example.com)
[While some Amiga Technologies Web information has been translated, so far
there is no English for the Escom text. Giorgio sat down and converted the
German for these press releases...-Jason]
ESCOM Company Profile
ESCOM AG - Half-yearly report 30. June 1995
RWE MOBILFUNK GMBH ACQUIRES 12.5% OF ESCOM
NEW MULTIMEDIA-COOPERATION WITH RWE TELLIANCE
ESCOM GROSS TURN-OVERS UP 32 % IN FIRST HALF-YEAR '95
ESCOM WILL TAKE POVER THE RWE-Concern's country-wide TELLIANCE
telecommunication chain with 50 outlets so strengthening its presence in
this field important to multimedia etc.,
Mobilfunk GmbH wil get 12,5 % of ESCOM AG zu beteiligen. The shares will
come from the private shares of ESCOM founder Manfred Schmitt...
ESCOM has fully reached its turnover goals in the first half of '95
increasing its gross compared to last year by 32% to 1,2 Bil Marks. During
te remaining of this year new growth indications are coming from the UK
where in May 95 ESCOM acquired 170 ex-Thorn-EMI stores with 30 more coming
before year's end. With these ESCOM will own a very tight distribution
setup in Europe's 2nd biggest market. This new direction toward the
multimedia market was stenghened by the acquisition in April of the
Commdore and Amiga technology. The first products were showcased at the
Berlin IF show and received a great deal of interest, so much so that the
1995 production is already sold out.
The retail computer sales underwent in the first six months of 95, a
noticeable slow-down, particularly in Germany. A relevant reason for his
was next to the weak consumer economy the annnouncement of the release by
September of WINDOWS 95 which led to market insecurity. Despite this ESCOM
succeeded at increasing its consolidated gross from 879 Mil marks for the
same period last year to 1,157 Bil Marks an increase of 77%, etc. etc.
Investments in the first half of 95 totalled 14 Mil marks, 5 up on previous
year mostly in the expansion of our distribution network, and a further 17
mil marks in the acquisition of Commmodore and Amiga.
The number of employees grew from 1,138 to 2,891 mainly due to the
expansion of our distribution facilities particularly in the UK. In
Germany as of June 30 1,394 people were employed.
At the end of the first half of 95 ESCOM had pre-tax losses of 4 mil Marks
as opposed to a profit of 6 mil last year. his was due to falling margins
in the computer market and the cost of increasing our distribution setup,
particularly in the UK, as well as the startup costs for the new production
of machines and their development.
The investment in the broadening of the distribution, the entering into the
new multimedia market have priority during this current year. Particular
attention being given to the UK market and the revival of Commodore/AMiga
A noticeable uplift in he market (Windows 95) and he development of our
retail facilities as well as our preparedness for the Xmas season as well
as the introduction of new multimedia products points to an increased
confidence that our aim to increase our total turnover for the year 95 by
40% to 3,1 bil Marks (as opposed to 2,1 bil last year) will be within
reach. Furthermore the increased capitalization agreed by the board in
July has been duly registered with the Commerce Dept, the new shares will
be credited in a 5:1 relation to our shareholders by the middle of October
95 and will also be introduced at the Frankfurt and Dusseldorf stock
ESCOM AG - FROM PCS TO MULTIMEDIA
With 2,300 employees. 2 bil Marks turnover and 410,000 PCs sold in
1994, ESCOM is a leading computer seller in Europe. When in 1986 Manfred
Schmitt started adding computers to his organ and instrument shop he could
not have forseen a how successful the business would turn out to be. By
1990 there were 1O shops in the Frankfurt area. As the Berlin wall came
down he looked east and thanks to a joint venture with a Dresden enterprise
he was able to start manufacturing PCs, while in 1992 the administartive
headquarters. were moved to Heppenheim and a year later the first central
Until 1993 the majority of the businesss was carried out in Germany with
only 20% abroad. This changed when a Dutch retail chain was acquired at
the end of 1993 and a first step undertaken in the UK. These two markets
are now, with the German one, the principal places of business for ESCOM.
By the middle of 95 there were now 167 ESCOM outlets in the UK, 36 in
Holland and 140 in Germany making the turnover abroad about 50%.
PRODUCT RANGE AND DISTRIBUTIUON NETWORK
ESCOM today has 5 manufacturing centers. Besides Heppenheim and Dresden
PCs are also made in Prestwick, Scotland, in Brno (Czech Republic) and
Amsterdam. Yearly manufacturing capacity is over 1 million units...
Due to its own well-tuned distribution network and retail-outlets ESCOM can
bring new products to market very quickly and by augmenting its outlets,
get very close to customers.
With the takeover of Hako AG ESCOM gained access to the stock-exchange in
1993. In the folwing year atrategic alliances were formed with Siemens
Nixdorf Information Systems AG (SNI) who today hold 10% of the share
capital. The cooperation with SNI means that very fast access to new
technologies, a relevant criteria for reaching a leading position in
Another partner is Quelle Schickedanz AG with 25% participation and the
latter's distribution outlets substantially adds new elements to widen the
distribution capacity both domestically and
GOALS AND MULTIMEDIA
By acquiring Commodore and Amiga ESCOM is positionning itself most
favourably in the new multimedia market. For the development,
manufacturing and distribution of Commodore and Amiga products ESCOM
founded a subsidiary, Commodore BV in Nieuw-Vennep, Holland, and Amiga
Technologies in Bensheim...
1986-1989 Start as PC seller
1990 European Expansion
1991 Start Production under own 'label'
"ESCOM" im Markt
1993 Acquisition of Hako AG and stock exchange introduction
1994-1995 Strategic alliances in view of multimedia expansion
OUTLETS as of July 31 1995:
1992 1.222 Mio. DM
1993 1.549 Mio. DM
1994 2.151 Mio. DM
1995 3.100 Mio. DM (estimate)
1995 >500.000 (estimate)
ESCOM TAKES OVER ASSCARFI
Board of Directors of ESCOM and RWE TElliance agree about take-over.
The RWE owned nationwide AssCarfi chain with its 50 specialized
communications stores TALK-LINE are herewith integrated in the ESCOM GROUP.
With this acquisition ESCOM is pursuing its goal of expanding its
competence in the field of telecommunications, an important key to the
multimedia market. As counterpart to the deal, RWE Telliance will be able
to use the complete distribution facilities of the ESCOM GROUP to market
its telecom services. At the same time RWE, through its subsidiary
Mobilfunk AG, has agreed to take a 12.5% participation in ESCOM.
"This partnership with both network and telcom service-provider is another
milestone for ESCOM in the multimedia direction", said Manfred Schmitt.
Volker Hoffman, RWE boardmember, added: " This partnership will allow us to
broaden our marketing capabilities on our way to become a leading contender
and competitor to German Telkom after final de-regulation of the