COLUMBIA, Md., Nov. 14 /PRNewswire/ -- GSE Systems, Inc (Amex: GVP), a
leading global provider of real time simulation and process control solutions,
today announced that it has signed a letter of intent whereby Avantium
International ("Avantium") will purchase and acquire certain assets of GSE's
VirtualPlant business under an asset purchase agreement in return for an
undisclosed amount of shares in Avantium thereby rendering GSE as Avantium's
largest shareholder. The transaction will be subject to Board and shareholder
approval of each company.
Avantium is a private high technology company focused on high-speed
experimentation and simulation technologies in contract research and
development in the area of new product development and process chemistry. The
Avantium shareholders are leading international chemical and pharmaceutical
companies, including Shell International Chemicals, WR Grace, SmithKline
Beecham, Akzo Nobel Chemicals, and Pfizer; GSE Systems; as well as the venture
capital companies S.R. One, the venture capital subsidiary of SmithKline
Beecham, NIB Capital, and Funds managed by Generics Asset Management. Also
participating are three Dutch universities; Delft University of Technology,
Eindhoven University of Technology, and the University of Twente. Avantium is
based in Amsterdam, The Netherlands with its main lab facility at the same
location and subsidiary facilities at Delft.
GSE and Avantium have been working together for a year and have concluded
that a combination of the relevant interest of two companies would
significantly increase the potential of both organizations. In addition,
focusing the technical and marketing resources of Avantium and the GSE
VirtualPlant team would produce significant cost savings. The transaction is
intended to conclude by the end of 2000 and would include certain GSE assets,
intellectual property and employment of certain personnel. GSE became an
equity shareholder in Avantium, at its founding, on February 24, 2000.
"We are very pleased and excited by this transaction with GSE which will
further enhance the integration of informatics, automation and simulation
software with our powerful high speed experimentation technology platform."
stated Dr. Ian E. Maxwell, CEO of Avantium International. "This will provide
the chemicals and pharmaceutical shareholders, strategic partners and
customers of Avantium access to a unique R&D discovery and upscaling
capability."
"We believe this combination makes sense for customers and GSE
shareholders," commented Jerome I. Feldman, Chairman of the Board of GSE
Systems. "Customers will be able to deal with one unified firm, the industry
leader, to service all their process R&D needs, Avantium now has the tools
necessary to achieve dramatic improvements in time-to-market for the customers
they serve. GSE shareholders will derive benefit from their ownership in
Avantium with its focus on the high growth business sector of chemical and
pharmaceutical process chemistry."
"Our Process and Power businesses are profitable going forward and we are
committed to using our strengths in simulation and control to meet the needs
of the future, " said Mr. Christopher M. Carnavos, GSE's President and CEO.
Avantium Technologies is a trademark of Avantium International
GSE Systems and VirtualPlant are trademarks of GSE Systems, Inc.
GSE Systems, Inc. develops and delivers business and technology solutions
by applying process control, data acquisition and simulation software, systems
and services to the pharmaceutical and chemical research & development,
energy, process and manufacturing industries worldwide. The Company's
products are used in the following industries: specialty chemical, food and
beverage, petroleum refining, pharmaceutical, fossil and nuclear power
generation, metals and water treatment. GSE Systems is headquartered in
Columbia, Maryland with offices in Georgia, Louisiana, Maryland, North and
South Carolina, Pennsylvania, and Texas, and its global locations include
offices in Belgium, the Netherlands, Sweden, Taiwan, and United Kingdom.
Information about GSE Systems is available via the Internet's World Wide Web
at http://www.whatisvirtualplant.com.
This news release contains forward-looking statements that involve risks
and uncertainties. The actual future results of GSE Systems may differ
materially due to a number of factors, including but not limited to delays in
introduction of products or enhancements, size and timing of individual
orders, rapid technological changes, market acceptance of new products and
competition. These and other factors are more fully discussed in the
Company's annual report on Form 10-K for the year ended December 31, 1999 as
filed with the Securities and Exchange Commission.
To receive additional information on GSE Systems, Inc., via fax at no
charge, dial 1-800-PRO-INFO and enter ticker symbol GVP.
SOURCE GSE Systems, Inc.
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Related links:
http://www.gses.com
CONTACT:
Christopher M. Carnavos, CEO of GSE Systems,
410-772-3601, or general info, Maura Gedid, or analyst info,
Susan Garland, 212-661-8030, both of The Financial Relations
Board
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