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FREMONT, Calif. - June 9, 2004 - Vialta, Inc
(OTC:VLTA) today announced that it has retained Needham
& Company Inc., an investment banking and asset
management firm, to explore a range
of strategic alternatives, including a possible sale
of the Company.
Vialta's
board of directors believes that the Company's product
development cycle has been established and it is now
seeking strategic opportunities to provide the resources
necessary to exploit the Company's potential and maximize
shareholder value. The board has appointed
a special committee of independent directors to work
with Needham & Co. and consider any alternatives
they present.
Didier
Pietri, Vialta's CEO and president, stated, "Vialta
has no outstanding debt and more than
$24 million in cash, cash equivalents and short-term
investments. The Company generated more than $10 million
in revenues in 2003 and reported net income of $1.5
million for the first quarter ended March 31, 2004.
Last year (2003) Vialta introduced three new products,
doubled domestic retail distribution to more than 1500
locations nation-wide, signed marketing agreements with
two international telecoms, and received sales contributions
from eight foreign markets - all of which is closely
linked to the record results achieved." Mr. Pietri
concluded, "The Company is positioned
to grow Vialta's presence in its chosen segment of the
consumer electronics market and gain
further acceptance from consumers."
About Vialta
Vialta
develops, designs and markets unique and innovative
home entertainment and communications products for the
mainstream consumer. The company was formed in April
1999 and is publicly traded on the OTC Bulletin Board
under the symbol VLTA. The company is headquartered
in Fremont, California with offices in Los Angeles and
Hong Kong.
About
Needham
Needham
& Company, Inc. is a privately held, full-service
investment bank, headquartered in New York City, specializing
in technology and biotechnology/life sciences, with offices
in Boston and Menlo Park. In addition to investment banking,
Needham's services include institutional sales and trading,
asset management and venture capital. Needham & Company,
Inc. also produces comprehensive equity investment research
on over 300 technology and life science companies and
regular studies on specific niche sectors within these
industries. For more information, please see www.needhamco.com.
Forward-Looking
Statements
The matters discussed in this news release include
certain forward-looking statements that involve risks
and uncertainties, including, but not limited to, the
possible reduction of consumer spending, the timely
availability and acceptance of the Company's new and
existing products, the impact of competitive products
and pricing, the dependence on continued growth in demand
for consumer products, the risk that products shipped
by the Company will be returned, and the other risks
detailed from time to time in the SEC reports of Vialta,
including the reports on Form 10-K and Form 10-Q. Actual
results could differ materially from those projected
in the forward-looking statements.
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