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CohuHD Costar News

Costar TechnologiesCONTACT: Scott Switzer
Costar Technologies, Inc.
(469) 635-6800
 
Dana Varga
CohuHD
(858) 391-1712
 
Costar Technologies, Inc. Completes Acquisition of
CohuHD Camera Products Division From Cohu, Inc.

Acquisition Expands Product Offerings and Accelerate Sales Growth

Coppell, Texas - July 17, 2014 - Costar Technologies, Inc. (OTC Markets Group: CSTI) announced today that it has closed the acquisition of the CohuHD camera products and video solutions division of Cohu, Inc. (NASDAQ: COHU). The purchase price for CohuHD, including potential earn-out payments, is $10 million in cash. The acquisition is structured as an asset purchase and was financed with proceeds from a new credit facility with Bank of Texas. The present CohuHD management team and other CohuHD employees joined Costar following the closing of the acquisition.

In making the announcement, Costar President and Chief Executive Officer James Pritchett stated, "This is a great strategic fit for Costar as we combine with one of the most well respected brands in the industry. We look forward to welcoming the team from CohuHD to Costar. The combination will yield meaningful operational benefits, together with significant synergies in many areas, including marketing, sales and product development. CohuHD's product offerings are complementary to Costar's current products and solutions, and, because Costar and CohuHD serve different channels and customers, the acquisition creates numerous cross selling opportunities. Our combined sales organization will expand CohuHD's product penetration in existing markets and promote CohuHD's products to new markets, accelerating the growth of our sales footprint. With the addition of CohuHD, we expect Costar to become one of the 50 largest video security companies in the world, with more than $40 million in revenue per year."

He went on to say, "The CohuHD acquisition is consistent with our strategy of providing high quality solutions to our customers. Our customers will have access to a broader product line while continuing to receive the same high quality of sales, service and support that they have come to expect from Costar and CohuHD."

"We are very excited to be joining the Costar team and to carry on CohuHD's 60 year history of leadership in the video camera market," said Tom Kampfer, President, CohuHD Division. "Our combined resources and broader product offering will generate growth opportunities for CohuHD's rugged, outdoor video cameras into new commercial channels, and access to Costar's products will enable further sales opportunities within our core transportation markets."

 
Read more about the acquisition

About CohuHD Costar
CohuHD Costar is a leading manufacturer of video surveillance camera systems for use in mission-critical, sensitive environments. Integrating the latest video compression and high-definition IP technology into its innovative, rugged video camera systems, CohuHD Costar's line of high quality HD cameras, transmission equipment and management software can be found on the International Space Station and monitoring the busiest freeways and ports, military bases, U.S. Navy ships, oil refineries, nuclear reactors, mines, high value manufacturing sites, and many other critical installations around the globe. CohuHD Costar is now owned by Costar Technologies, Inc.
 
 
 
 

About Costar Technologies, Inc.
Costar Technologies, Inc. develops, designs and distributes a range of security solution products including surveillance cameras, lenses, digital video recorders and high-speed domes. Costar also develops, designs and distributes industrial vision products to observe repetitive production and assembly lines, thereby increasing efficiency by detecting faults in the production process. Headquartered in Coppell, Texas, Costar's shares currently trade on the OTC Markets Group under the ticker symbol "CSTI".

Cautionary Statement Regarding Forward Looking Statements
This press release contains forward-looking statements that involve risks and uncertainties, as well as assumptions, that if they never materialize or prove incorrect, could cause the results of the Company to differ materially from those expressed or implied by such forward-looking statements. Forward-looking statements generally are identified by the words "expects," "anticipates," "believes," "intends," "estimates," "should," "would," "strategy," "plan" and similar expressions. All statements other than statements of historical fact are statements that could be deemed forward-looking statements. These forward-looking statements include, among other things, statements regarding markets for our products and our performance in those markets, our business plans, product performance and impact, competitive offerings, impact and benefits of the transaction including potential synergies to be achieved, the transaction's impact on Costar's sales and other financial results and the timing of the transaction's closing. These forward-looking statements are based on our beliefs, assumptions and estimates using information available to us at the time and are not intended to be guarantees of future events or performance. The risks, uncertainties and assumptions include developments in the marketplace for our products, competition, related products and services and general economic conditions, as well as other risks and uncertainties. If our underlying assumptions turn out to be incorrect, or if certain risks or uncertainties materialize, actual results could vary materially from the expectations and projections expressed or implied by our forward-looking statements. These factors, in some cases, have affected and in the future (together with other factors) could affect our ability to implement our business strategy and may cause actual results to differ materially from those contemplated by the statements expressed in this press release. Accordingly, we cannot give assurance that any of the events anticipated by the forward-looking statements will transpire or occur, or if any of them do so, what impact they will have on the results of operations or financial condition of Costar. As a result, readers are cautioned not to place undue reliance on any of our forward-looking statements. We disclaim any intention or obligation to publicly update or revise any forward-looking statements to reflect any change in our expectations or in events, conditions or circumstances on which those expectations may be based, or that may affect the likelihood that actual results will differ from those contained in the forward-looking statements. This cautionary statement is applicable to all forward-looking statements contained in this press release.

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