News

The market for variable data printing that depends on software like XMPie to personalize applications is projected to triple in the U.S. at a compounded annual rate of 26 percent from $5.3 billion in 2004 to $16.6 billion in 2009, according to industry research firm InfoTrends.
“As XMPie’s largest reseller, Xerox has long served customers’ growing demand for variable information software integrated with on-demand printing technology, Web and e-mail applications to create powerful marketing programs,” said Ursula M. Burns, president, Xerox Business Group Operations. “Through this acquisition we are bringing the intelligence of data collection together with the quality of digital printing to provide complete, measurable solutions for multimedia marketing campaigns.”
The XMPie software suite is compatible with industry-standard printing technologies from companies such as Adobe Systems Inc. XMPie can develop customized Web sites for online purchases and use a single database to generate both print and Web pages, tracking response rates and Web traffic to measure the effectiveness and profitability of marketing campaigns.
XMPie’s award-winning image personalization software, called uImageTM, helps marketers extend the capabilities of personalization by including personal messages in documents such as magazine covers, direct mailers, children’s books, calendars and travel brochures. Personal information can be embedded within photos and into designs on windows, street signs, clothing, buildings, automobiles and other objects.
XMPie will maintain its brand name and function as a standalone software unit, continuing to serve the entire graphic arts market and supporting current customers and business partners as well as Xerox. Jacob Aizikowitz will head up the unit, reporting directly to Burns. Aizikowitz is a founder of XMPie and has served as its chairman and chief technology officer since April 2005.

Founded in 2000 and funded by Jerusalem Venture Partners, XMPie is a global operation with about 60 employees. XMPie will keep the company’s headquarters in New York and its research and development facility in Netanya, Israel. The vast majority of XMPie employees are expected to join Xerox.
Xerox’s all-cash purchase of XMPie is expected to close in the next 30 days, subject to receipt of regulatory approvals and customary closing conditions.
Through its acquisition strategy, Xerox is identifying successful companies in niche markets that align with Xerox’s commitment to innovation, personalized service, and document management offerings. XMPie is Xerox’s second acquisition this year. In July, Xerox acquired Amici LLC, a leading provider of electronic-discovery services, primarily supporting litigation and regulatory compliance.

Scailex logo

Scailex Sold 49.4% of Shares Announces Changes in its Principal Shareholders and Management
* Eran Schwartz appointed Chairman of the Board of Directors
* Yahel Shachar, Scailex’s CFO, appointed Chief Executive Officer
* 49.4% of ownership sold to Perochemicals company for $165M

Tel Aviv, Israel – July 18, 2006.      Scailex Corporation Ltd. (formerly: Scitex Corporation) (NASDAQ & TASE: SCIX) today announced that its principal shareholders, Clal Industries and Investments Ltd. and Discount Investments Corporation Ltd., informed Scailex that they completed the sale of all of the 18,800,255 Scailex shares held by them, representing approximately 49.4% of Scailex’s outstanding share capital, to a fully owned subsidiary of Israel Petrochemicals Enterprise Ltd. (IPE), an Israeli holding company whose shares are traded on the Tel Aviv Stock Exchange. The shares were acquired for an aggregate purchase price of $165 million, and additional $2.6 million to be paid within 10 business days
from closing due to an adjustment in the purchase price relating to the $12.6 million tax refund received by Scailex (as reported yesterday). The purchase price is subject to certain additional adjustments according to the sale agreement.
In connection with the completion of the transaction, eight of Scailex’s current directors resigned from the Board – Arie Mientkavich, Shimon Alon, Avraham Asheri, Raanan Cohen, Avi Fischer, Nachum Shamir, Shay Livnat and Ophira Rosolio-Aharonson. The following seven new directors joined the Board – Eran Schwartz, Irit Ben-Ami, Dr. Arie Ovadia, Modi Peled, Arie Zief, Arie Silverberg and Shalom Singer, effective immediately. Mr. Eran Schwartz, CEO of IPE, was appointed Chairman of the Board of Directors, replacing Mr. Arie Mientkavich, who served as the Chairman since June 2006. The appointment of the new chairman is currently until December 31, 2006. In addition, Scailex announced that Mr. Yahel Shachar, currently the CFO of Scailex, has been

XMPie develops variable data publishing (VPD) products, offering a complete platform for printing, data control, interface, document design, data access and data retrieval, the transfer of data between different electronic media (printing, Internet, e-mail, and cellular messaging), and e-commerce.

PersonalEffect
XMPie’s technology is mostly used for advertising sheets and customized advertising through the company’s PersonalEffect solution. The company’s products can collate information about customers from enterprise customer relation management (CRM) systems, and customize advertising material and newsletters sent to them.

XMPie distributes its products through partners, including Xerox, HP, Electronics for Imaging Inc. (Nasdaq: EFII), Sakata Inx Corp. (TSE:4633) of Japan, Creo (now part of the Kodak Graphic Communications Group), and Israeli start-up Press-sense Ltd., which also closely cooperates with Xerox.

Company History
XMPie was founded by the ExScite’s: chairman and CTO Jacob Aizikowitz, chief software architect Israel Roth, and EVP R&D Reuven J. Sherwin, all former Scitex managers. Scitex not only was the source of XMPie’s human capital, but also supplied its starting capital with a $500,000 investment. Jerusalem Venture Partners (JVP) later became the company’s largest shareholder after investing $13 million in several financing rounds.

In 2002, XMPie acquired some of the activities of Nuvisio as part of a deal with US microinvesting company BabyMint. In early 2005, Eyal S. Goldwerger was appointed CEO. The company currently has 40 employees at its New York headquarters and Netanya development center. The company raised $15 million from JVP, Scitex and, last year, from Carmel Ventures fund Plenus Venture Lending Fund.

As mentioned above, XMPie is Xerox’s first acquisition in Israel. Xerox Israel Ltd., under general manager Yoram Levanon, is a sales and services subsidiary. Xerox Israel has 95 employees, and the company has installed 70 XMPie systems in Israel under its partnership with Xerox.

The acquisition of XMPie is a successful exit for JVP, giving it a three-fold return on its investment. It is not a fantastic exit, however, of the kind seen in other deals.

XMPie was not available for comment. JVP declined to comment. Yoram Levanon said, I am very pleased at Xerox’s decision to invest in Israel.

“Since 1995, Michael has played an important role in the success of our Israeli operations. We thank him for his contribution over many years, we respect his decision to move in a different career direction, and we wish him well in his future endeavors,” said Hess.

Rolant began his career at Creo Inc. in 1995. In 2000, he was named president of Creo Israel, which focused on R&D and manufacturing. When Kodak completed its acquisition of Creo in June 2005, Rolant was named general manager of the GCG’s operations in Israel.

“Kodak’s acquisition of Creo created significant value for the graphic communications industry,” said Rolant. “I am proud to have worked with the most creative and talented people in our industry and I leave a strong and dedicated management team in place.”

“Kodak continues to show great momentum in providing graphic communications companies with advanced solutions to help them grow their business. We plan to continue to develop and commercialize breakthrough products and services, under the strength of our new leadership organization,” said Hess.

Dec 29, 2005—SAN FRANCISCO (MarketWatch) — Scitex Corporation Ltd. after Thursday’s closing bell said shareholders approved today changing the company’s name to Scailex Corporation Ltd. The new company name will begin appearing in communications, and on its company’s new Web site. Scitex expects its shares to continue trading as “SCIX.”

The Scitex Vision businesses acquired are principally located in the United States, Belgium, China, Israel, Mexico and South Africa, and are being integrated into HP’s Imaging and Printing Group and reporting to the HP inkjet group in Barcelona, Spain.
This strengthens HP’s position as a one-stop partner for providers of print services with a product portfolio of large-format printers, digital presses and now industrial wide-format printers, providing a significant competitive advantage.

“This purchase accelerates HP’s push into one of the most significant and fastest growing market opportunities: to digitize analog prints and gain market leadership in the graphics industry,” said Enrique Lores, vice president and general manager, Large Format Printing, Imaging and Printing Group, HP. “Customers soon will start to see the benefits of access to a much wider range of products and services while continuing to enjoy the same high levels of service.”

About HP

HP is a technology solutions provider to consumers, businesses and institutions globally. The company’s offerings span IT infrastructure, global services, business and home computing, and imaging and printing. For the four fiscal quarters ended July 31, 2005, HP revenue totaled $85.2 billion. More information about HP (NYSE, Nasdaq: HPQ) is available at http://www.hp.com.