Creo and Heidelberger have been unable to agree on modifications to the joint-venture agreement necessary as a result of the merger of Creo and Scitex prepress operations.
CREO ANNOUNCES CHANGE IN RELATIONSHIP WITH HEIDELBERG Vancouver, BC, CANADA (April 5, 2000) – Creo Products Inc. (NASDAQ: CREO; TSE: CRE) (Creo) announced today that it has exercised its right to end the Heidelberg/Creo joint venture. Creo and Heidelberger Druckmaschinen AG (Heidelberg) have been unable to agree on modifications to the joint-venture agreement necessary as a result of the merger of Creo and Scitex prepress operations. Under the terms of the joint-venture agreement, Heidelberg and Creo will proceed to negotiate an original equipment manufacture (OEM) arrangement immediately. This change, triggered by the CreoScitex transaction closure yesterday, will allow for more independence and flexibility for the respective sales and support organizations. Creo expects that the current Heidelberg/Creo joint-venture products such as the Trendsetter® family of thermal platesetters and the Prinergy workflow management system, will be sold through both CreoScitex and Heidelberg distribution channels. Creo already has an existing OEM agreement to supply Heidelberg with imaging systems for the Speedmaster 74 DI press.
