GLENDALE, CA--(Marketwire - October 4, 2007) - American Reprographics Company (
NYSE:
ARP),
the nation's leading provider of reprographics services and technology,
today announced the signing of a joint venture agreement with Unisplendour
Corporation Limited, the Shenzhen-listed high-technology manufacturer and
retailing giant closely associated with Tsinghua University in Beijing. ARC
holds a 65% controlling ownership stake in the new venture and is the
company's first strategic partnership inside one of the fastest growing
economies in the world.
The newly formed company, UNIS Document Solutions Limited (UDS), will pair
the digital document management solutions of American Reprographics Company
with the brand recognition and Chinese distribution channel of Unisplendour
to deliver digital reprographics services to the country's booming
construction industry.
"We're very pleased to partner with such a prestigious company like
Unisplendour in the expansion of our business into China," said K. "Suri"
Suriyakumar, CEO and President of American Reprographics Company. "It is a
tremendous testament to our technology that a company of Unisplendour's
caliber and resources sought us out for this initiative. We look forward to
providing a leadership role in addressing the Chinese construction
industry's growing need for digital document solutions and expect this
venture to bring significant long-term value to ARC."
Zhiqiang Li, President of Unisplendour said, "It was clear from the
beginning that American Reprographics Company possessed the document
management technology and expertise necessary to support the tremendous
growth in China's construction industry. We expect to address this huge
market opportunity from a position of strength as we leverage the expertise
of both companies."
ARC and Unisplendour believe that their technology solutions and
distribution capabilities will position UDS to become the premier provider
of digital document management solutions in the burgeoning, but
analog-based, construction industry in China.
Initial business activity will include the Chinese development and sale of
ARC's Web-based PlanWell document management solutions, as well as the
placement of on-site reprographics services -- otherwise known as FMs --
with AEC professionals in Beijing, Shanghai, and other growing metropolitan
areas of China. The joint venture agreement will also allow ARC a more
efficient and cost-effective means of providing document management and
reprographic services to its nationwide base of design and
construction-based customers who continue to expand their business into
Chinese markets.
UNIS Document Solutions Limited will be capitalized by an investment of
92,800,000 RMB (approximately $12 million USD) from American Reprographics
Company, and 50,000,000 RMB (approximately $6.5 million USD) by
Unisplendour. The company will begin integration and training efforts for
its 80 employees over the next several months. More information will be
available from American Reprographics Company on its third quarter earnings
call scheduled for November 1, 2007.
The new company will be headquartered in Beijing's Tsinghua Science Park, a
well-recognized and growing world-class technology incubator. It will
operate branch operations in Beijing and Shanghai.
About Unisplendour Corporation Limited
Formerly known as Tsinghua Unisplendour Corporation Limited, Unisplendour's
principal activity is manufacturing and retailing electronic information
and communication products such as computers and laptops. It also provides
information technology services to a variety of industries and is engaged
in international trading.
About American Reprographics Company
American Reprographics Company is the leading reprographics company in the
United States providing business-to-business document management technology
and services to the architectural, engineering and construction, or AEC
industries. The Company provides these services to companies in non-AEC
industries, such as technology, financial services, retail, entertainment,
and food and hospitality, which also require sophisticated document
management services. American Reprographics Company provides its core
services through its suite of reprographics technology products, a network
of more than 280 locally branded reprographics service centers across the
U.S., and on-site at more than 4,000 customer locations. The Company's
service centers are arranged in a hub and satellite structure and are
digitally connected as a cohesive network, allowing the provision of
services both locally and nationally to more than 140,000 active customers.
Forward-Looking Statements Disclaimer
This press release contains forward-looking statements that fall within the
"safe harbor" provisions of the Private Securities Litigation Reform Act of
1995 regarding future events and the future financial performance of the
Company. Words such as "will," "going forward," "expects," and similar
expressions also identify forward-looking statements. We wish to caution
you that such statements are only predictions and actual results may differ
materially as a result of risks and uncertainties that pertain to our
business. These risks and uncertainties include, among others:
-- Future downturns in the architectural, engineering and construction
industries could diminish demand for our products and services in the U.S.
and China;
-- Competition in our industry and innovation by our competitors may
hinder our ability to execute our business strategy and maintain our
profitability;
-- Failure to anticipate and adapt to future changes in our industry
could harm our competitive position;
-- Failure to manage our foreign business units including our inability
to integrate and merge the business operations of partner companies, and
failure to retain key personnel and customers of partner companies could
have a negative effect on our future performance, results of operations and
financial condition;
-- Dependence on certain key vendors for equipment, maintenance services
and supplies, could make us vulnerable to supply shortages and price
fluctuations;
-- Damage or disruption to our facilities, our technology centers, our
vendors or a majority of our customers could impair our ability to
effectively provide our services and may have a significant impact on our
revenues, expenses and financial condition;
-- If we fail to continue to develop and introduce new services
successfully, our competitive positioning and our ability to grow our
business could be harmed.
The foregoing list of risks and uncertainties is illustrative but is by no
means exhaustive. For more information on factors that may affect future
performance, please review our SEC filings, specifically our annual report
on Form 10-K for the year ended December 31, 2006, our final prospectus
supplement dated March 8, 2007, and our quarterly reports on Form 10-Q for
the quarters ended March 31, 2007, and June 30, 2007. These documents
contain important risk factors that could cause actual results to differ
materially from those contained in our projections or forward-looking
statements. These forward-looking statements are based on information as of
October 4, 2007, and except as required by law, the Company undertakes no
obligation to update or revise any forward-looking statements.
Contact Information: Contacts:
David Stickney
VP of Corporate Communications
Phone: 925-949-5100
Email:
David Pasquale
The Ruth Group
Phone: 646-536-7006
Email: