Scitex Corporation – The New Strategy

Scitex Corporation – The New Strategy

A network of companies, the strategy for growth and leadership

Herzlia, Israel, May 11, 2000 –
Scitex Corporation Ltd. (NASDAQ: SCIX) today announces its new corporate strategy following the transaction with Creo Products Inc. on April 4, 2000. Scitex will dedicate itself to building a network of leading and innovative companies that are focused on combining digital imaging technologies with the power of the Internet.

Scitex Corporation’s strategy is based on the following business objectives:

• Enhance and highlight the value of its existing activities and investment portfolio;
• Invest in specialized technology companies that are revolutionizing their industries;
• Leverage the complementary strengths of the existing network of companies that Scitex Corporation either owns or has an interest in; and
• Add managerial depth and market knowledge to this network of companies.

Scitex is uniquely positioned to implement this strategy with its knowledge of the graphic arts and digital imaging industries and an established brand name. Using its vast intellectual property and experienced management team, Scitex is working to maximize the synergetic opportunities created within its network of companies, in order to generate value and growth from the convergence of digital imaging technologies with the Internet.

Yoav Z. Chelouche, President and Chief Executive Officer of Scitex said: “Through our leadership in print and publishing technology we are committed to continuously innovate and advance in these industries. Scitex is building a network of leading, innovative companies focused on combining digital imaging technologies with the power of the Internet to create a world of visually rich business communications. From its position as a world leader in digital imaging solutions, Scitex is continuously advancing technology in order to capitalize on the market’s expanding potential.”

The DRUPA trade exhibition (May 18 – 31) in Dusseldorf, Germany is a timely opportunity to present the company’s new strategy and focus, and to display at the Scitex booth the broad array of industrial inkjet solutions from Scitex Digital Printing, Scitex Wide Format Printing and Aprion Digital. Vio Worldwide Limited and Karat Digital Press will have their own stands. It will also be the first showing of the combined CreoScitex preprint business.

Chelouche concluded: “We are excited to be able to participate on a wider front of technologies and opportunities as our industry transforms.”

Further information on Scitex Corporation Ltd.

Scitex’s network of companies presently consist of the following:

Scitex’s main businesses now operate within three main markets:

Digital Preprint

• Creo Products Inc. With the closing of the Scitex and Creo Products transaction, Scitex received 13.25 million shares in exchange for the assets of Scitex’s digital preprint business. In so doing, Scitex became the major shareholder in Creo with approximately 27% of shares outstanding, and going forward, Scitex’s participation in the digital preprint business will be driven by its equity investment in Creo. Creo Products Inc. is a world leader in digital preprint and on-press imaging technologies.

Digital Printing

• Scitex Digital Printing, Inc. (SDP) is a world leader in high speed variable inkjet printing. The company, which is 100% owned by Scitex, recorded revenues of over $140 million for 1999. The company provides the most advanced, competitive, and low-cost solutions for high-speed variable data printing for applications such as telecom billing, direct mail, and one-to-one marketing solutions. SDP’s growth strategy is based on sales of its new ultra high-speed, high resolution Scitex VersaMark� products. The company recently announced the launch of the VersaMark Business Color Press� which prints 100% variable data in process color at the highest speed and lowest page cost available in the world.
• Scitex Wide Format Printing Ltd. This fast growing, 100% owned subsidiary, is a world leader in digital inkjet printing systems and consumables for use in wide and super-wide format printing applications. The company recorded revenues of approximately $43 million in 1999, an over 50% increase over 1998. During the quarter Scitex Wide Format Printing signed an exclusive worldwide cooperation agreement with 3M.
• Karat Digital Press. This 50/50 joint venture with Koenig & Bauer A.G. develops and manufactures the highly innovative 74 Karat� digital offset press. The company has placed ten beta units worldwide and expects to commence commercial shipments soon.
• Aprion Digital Ltd. Scitex obtained venture capital financing for this exciting technology in mid-1999 and now holds approximately 17% with the option to increase its holdings to approximately 47%. The company develops state of the art drop-on-demand inkjet technologies, creating flexible, value generating printing solutions to be brought to market by a network of strategic partners.

Internet

• Vio Worldwide Limited, our 50/50 joint venture with British Telecommunications plc, is pioneering Internet and telecommunications services for the printing industry. Vio operates as an ASP (Applications Service Provider) for the graphic arts industry. The company is enjoying a rapidly growing user base, including wide band and Internet users.
• RTimage Ltd. Scitex holds a 13% stake in this leading provider of professional Internet-based imaging products and services for the graphic arts and medical communities. RTimage’s breakthrough technology provides online remote proofing applications, and remote diagnostics for the medical community.
• SciDel Technologies Ltd. Scitex holds 30% of the company, which specializes in real time advertising insertion to TV and Webcasting. The SciDel technologies offered as a service are experiencing expanded deman.