SOURCE: American Reprographics Company

October 04, 2007 08:30 ET

American Reprographics Company Announces Joint Venture in China With Leading Technology Manufacturer Unisplendour Corporation Ltd.

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: Email Contact

    David Pasquale
    The Ruth Group
    Phone: 646-536-7006
    Email: Email Contact