LPS, one of the largest suppliers of power systems in North America, provides a full line of energy solutions and power products for telecommunications service providers and for the computer industry. LPS will continue to be a significant supplier of power solutions to Lucent Technologies as part of its integrated product offerings under a multiyear supply agreement.
According to L. Dennis Kozlowski, Chairman and Chief Executive Officer of Tyco International Ltd., "We expect that the acquisition of LPS, like previous acquisitions, will be immediately accretive to Tyco's earnings. Previous acquisitions in Tyco Electronics continue to achieve strong top line growth and exceed cost reduction targets."
Mr. Kozlowski also stated, "The acquisition of LPS is an excellent fit for Tyco. It provides a link between Tyco Electronics' electronic components and TyCom's communications networks. A considerable amount of Tyco Electronics' components are used in power systems, and this acquisition will allow us to further leverage our product capabilities. The power system itself is a critical component within TyCom's fiber optic communication networks. This acquisition is part of an evolution of Tyco Electronics to a systems provider as well as a components supplier. The LPS acquisition enhances our capabilities with existing customers. The systems are sold to many of Tyco Electronics customers and serve the same industries."
"We expect that this business will add to Tyco's continued strong organic growth. Tyco is uniquely positioned to expand this business into further geographic markets and industries. In addition, this acquisition provides Tyco Electronics with the world-class engineering, manufacturing and product development resources of Lucent's Power Systems business. The expertise of LPS' engineers and researchers will contribute to product development and customer solutions throughout Tyco Electronics," Mr. Kozlowski continued.
Tyco will discuss the acquisition during a conference call for investors on Tuesday, November 14 at 8:00 a.m. (EST). The telephone number for US investors is 800-230-1093; international investors should call 612-288-0340. The conference call can also be accessed at the following website: investors.tycoint.com/medialist.cfm.
ABOUT LUCENT'S POWER SYSTEMS BUSINESS
LPS is one of the world's leading suppliers to the global information network. LPS provides a full line of power products, including AC/DC and DC/DC switching power supplies, batteries, power supplies and back up power systems. LPS includes the following product categories: The Energy Systems group provides energy reserve power systems for Telecommunication Service Providers; its products include battery plant power systems, engineering, consultancy, installation and maintenance. The Board Mounted Power/Point of Load group provides AC/DC and DC/DC rectifiers and conversion systems to the Communications and Computer OEM market. The Custom Power group delivers customer- and application-specific solutions.
Among LPS products are its Enhanced Distributed Power Architecture targeted for indoor data processing applications, and its Cabinet Power Systems designed with extended temperature range capabilities for outdoor environments.
Based in Mesquite, Texas, LPS is the first and only U.S. manufacturer to be awarded the Deming Prize for Quality.
ABOUT TYCO ELECTRONICS
Tyco Electronics Corporation is one of the major business units of Tyco International Ltd. Tyco Electronics, headquartered in Harrisburg, Pennsylvania, USA, is the largest passive electronic components manufacturer in the world, and also designs and manufactures leading-edge wireless and fiber optic active components. The company has facilities located in 56 countries serving customers in the aerospace, automotive, computer, communications, consumer electronics, industrial and power industries. Tyco Electronics provides advanced technology products from its Agastat, Alcoswitch, AMP, Ansley, Augat, Buchanan, Elcon, Elo TouchSystems, HTS, LDI, M/A-COM, Madison Cable, OEG, Potter & Brumfield, Raychem, RDI, Schrack and Simel brands.
ABOUT TYCO INTERNATIONAL LTD.
Tyco International Ltd. (NYSE: TYC; LSE: TYI; BSX: TYC) is a diversified manufacturing and service company. Tyco is the world's largest manufacturer and servicer of electrical and electronic components; the world's largest designer, manufacturer, installer and servicer of undersea telecommunications systems; the world's largest manufacturer, installer and provider of fire protection systems and electronic security services, and the world's largest manufacturer of flow control valves. Tyco also holds strong leadership positions in disposable medical products, diagnostic imaging, bulk pharmaceuticals, wound closure, plastics and adhesives. Tyco operates in more than 100 countries and has reported fiscal 2000 sales of approximately $28.9 billion.
FORWARD LOOKING INFORMATION
This release contains "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995, including but not limited to statements about market growth, expected benefits from the Lucent Power Systems acquisition and earnings impact from the Lucent Power Systems acquisition. These statements are based on management's current expectations and are subject to uncertainty and changes in circumstances.
The following factors, among others, may cause actual results to vary materially from the expectations contained in the forward-looking statements: the risk that the businesses of Tyco and Lucent Power Systems will not be integrated successfully and other economic, business and competitive factors affecting Tyco's and Lucent Power Systems businesses generally.
More detailed information about these factors is set forth in Tyco's filings with the Securities and Exchange Commission, including Tyco's Annual Report on Form 10-K, as amended, for the fiscal year ended September 30, 1999, its most recent Quarterly Reports on Form 10-Q, as amended, and its Current Reports on Form 8-K. Tyco is under no obligation to (and expressly disclaims any such obligation to) update its forward-looking statements whether as a result of new information, future events or otherwise.