Datamark Systems Group Inc.
TSX : DMK

Datamark Systems Group Inc.

June 04, 2007 17:49 ET

Datamark Systems Group Inc. Announces Adjustment to Consideration Payable Under Previously Announced Acquisition Agreement

MONTREAL, QUEBEC--(Marketwire - June 4, 2007) - NOT FOR DISTRIBUTION IN THE UNITED STATES

Datamark Systems Group Inc. (TSX:DMK)

On February 9, 2007, Datamark announced that it had entered into an Acquisition Agreement with Komunik Corporation providing for the combination of Komunik, a private Montreal-based company, and Datamark (the "Combined Entity") which was amended on April 25, 2007 (the "Acquisition Agreement") pursuant to which Datamark shareholders would, at their option, be entitled to a consideration per share equal to $1.98 in cash; or one share of the Combined Entity; or a combination thereof subject to pro-ration and subject to adjustments, depending on the debt of Datamark (the "Combination").

Under the terms of the Acquisition Agreement, the consideration to be paid to Datamark shareholders is subject to adjustment in the event the debt of Datamark, which is being assumed by the Combined Entity, exceeds $9,000,000 or is less than $8,800,000 as determined on May 31, 2007. The debt of Datamark on May 31, 2007 was determined to be $8,298,765. Therefore, pursuant to the terms of the Acquisition Agreement, the consideration to be paid to Datamark shareholders has been adjusted from $1.98 to $2.0275. All other terms of the Combination remain the same.

The Combination continues to be subject to the approval of Datamark's shareholders at the Shareholder Meeting to be held on June 7, 2007, applicable regulatory and court approvals, and certain other conditions. The Combination is expected to close on or about June 12, 2007.

About Komunik

Komunik is a provider of end-to-end solutions for relationship marketers. Through technology innovation, Komunik helps Fortune 1000 companies increase their control of the marketing environment. Komunik provides marketers with world-class expertise and support for multi-channel activities and business process optimization. Komunik's value proposition includes: Marketing Programs Outsourcing, Email Marketing, Interactive Marketing and Variable Printing Solutions. The Company's proprietary technology provides a flexible feature set to meet marketers' demands. Konversation, a modular technology platform, is designed to optimize and integrate business processes and relationship marketing activities.

About Datamark

Datamark Systems Group Inc. is dedicated to providing efficient and innovative document Management solutions. The company's operating divisions and subsidiaries, Datamark Systems, Proforms and Les Impressions Intra-Media Inc. provide a full range of products and services including forms, labels, airline products and short and long run commercial printing. Document management services encompass warehousing and distributions as well as customized inventory and cost reporting. Datamark Systems Group Inc.'s plants and distributions centers are in Quebec, Ontario, Manitoba and Alberta. Datamark Systems Group Inc.'s shares are listed on the Toronto Stock Exchange under the symbol DMK.

Cautionary note about forward-looking statements

Some of the statements made in this release may constitute forward-looking information or statements within the meaning of securities laws. These statements are based on certain factors and assumptions, which Datamark and Komunik believe are reasonable as of the current date. While Datamark and Komunik consider these assumptions to be reasonable based on information currently available to us, they may prove to be incorrect. Datamark and Komunik caution that actual future performance could be affected by a number of factors, including technological change, regulatory change and competitive factors, many of which are beyond Datamark's and Komunik's control. Therefore, future events and results may vary substantially from what Datamark and Komunik currently foresee. While Datamark and Komunik may elect to, they are under no obligation (and expressly disclaim any such obligation) and do not undertake to update or alter this information.

Contact Information

  • DATAMARK SYSTEMS GROUP INC.
    JEFFREY ZUNENSHINE
    PRESIDENT AND CEO
    450-663-7878, EXT. 410
    or
    KOMUNIK CORPORATION
    ALAIN PAQUIN
    PRESIDENT AND CEO
    514-904-0710
    or
    Massy-Forget Public Relations
    Emily Bradshaw/Safia Genereux-Khali
    514-842-2455 extension 26 or 31
    ebradshaw@mfrp.com / sgenereux-khali@mfrp.com