CHARLTON, Mass., Feb. 4 /PRNewswire-FirstCall/ -- FiberCore, Inc.
(Nasdaq: FBCE), a leading manufacturer and global supplier of optical fiber
and preform for the telecommunication and data communications markets, today
announced that it has entered into a joint venture with the Industrial
Development Corp (IDC) of South Africa, a quasi governmental agency, and local
investors to build a manufacturing facility for single-mode fiber in Cape
Town, South Africa.
The joint venture, FiberCore Africa, is a US$28 million (326 million South
African Rand) project, consisting of approximately $17 million in equity and
$11 million in loans. For its contribution of technology and approximately
$1.7 million in cash, FiberCore will have a 60% equity interest, with rights
to purchase the remaining 40% between 2004 and 2006. FiberCore will make its
investment during the course of the construction of the facility with funds
received from its recently announced financing. Several other participants,
led by the IDC of South Africa, will contribute approximately $7 million for a
40% equity interest in the joint venture. This is a Rand-based transaction so
all U.S. dollar figures are approximate.
To complete the funding of the project, FiberCore Africa closed on an
approximately US$11 million bank facility with a consortium of lenders,
comprised of the IDC of South Africa, PSG Investment Bank Limited and BOE Bank
Limited. In addition, the joint venture is eligible to receive tax and other
benefits with an estimated current value of approximately $18 million, spread
over the next few years.
FiberCore also announced that experienced, local senior management and key
technical personnel have agreed to join the FiberCore Africa team. This
management team will be supported by existing FiberCore staff from the United
States as well as from its facilities in Germany and Brazil.
"We are excited to be partnering with the IDC of South Africa to enter
this developing fiber market," commented Dr. Aslami, President and CEO. "The
addition of a facility in South Africa is part of our planned capacity
expansion program for single-mode fiber and is expected to be operational in
the first half of 2003. This timing should correlate with both industry and
our own expectations for a stronger fiber market. The new facility, combined
with the current and recently announced planned expansions of our operations
in Germany and the U.S. for multimode fiber, and Brazil for single-mode fiber,
will satisfy the Company's existing fiber capacity requirements through 2003
and into 2004. In addition to South Africa, target markets for the fiber
would include the Middle East and other non-U.S. markets."
Dr. Aslami added, "FiberCore is planning to supply the joint venture with
some of the specialized equipment and technology used in the manufacturing
process through FiberCore Machinery GmbH, a wholly owned subsidiary of
FiberCore Jena AG in Germany."
FiberCore, Inc. develops, manufactures and markets single-mode and
multimode optical fiber preforms and optical fiber for the telecommunications
and data communications markets. In addition to its standard multimode and
single-mode fiber, FiberCore also offers various grades of fiber for use in
laser-based systems up to 10 gigabits/sec, to help guarantee high bandwidths
and to suit the needs of Feeder Loop (also known as Metropolitan Area
Network), Fiber-to-the Curb, Fiber-to-the Home and Fiber-to-the Desk
applications. Manufacturing facilities are presently located in Jena, Germany
and Campinas, Brazil.
For more information about the company, its products, or shareholder
information please visit our Website at: http://www.FiberCoreUSA.com or contact us
at: Phone - 508-248-3900 or by FAX - 508-248-5588 or E-Mail:
sales@FiberCoreUSA.com; investor_relations@FiberCoreUSA.com
Except for the historical matters discussed above, the statements in this
press release are forward looking and are made pursuant to the "safe harbor"
provisions of the Private Securities Litigation Reform Act of 1995. They are
based on the Company's current expectations and are subject to a number of
risks and uncertainties. Actual results may differ materially from those
projected as a result of certain general economic and business conditions;
loss of market share through competition; introduction of competing products
by other companies; changes in industry capacity; pressure on prices from
competition or from purchasers of the Company's products; availability of
qualified personnel; the delivery of an ability to commission new equipment as
scheduled; ability to obtain required financing; dependence on a limited
number of raw material suppliers; the loss or reduced creditworthiness of any
significant customers; and other factors detailed from time to time in the
Company's filings with the Securities and Exchange Commission.
SOURCE FiberCore, Inc.
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Related links:
http://www.FiberCoreUSA.com
CONTACT:
Dr. Mohd A. Aslami, President-CEO, or Robert
Lobban, CFO, both of FiberCore, +1-508-248-3900; or General,
Alison Ziegler, Analysts, Peter Seltzberg, or Media, Judith
Sylk-Siegel, all of FRB Weber Shandwick, +1-212-445-8400
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