IRVINE, Calif., May 13, 2002 (PRIMEZONE) -- Newport Corporation (Nasdaq:NEWP) today announced that it has completed the previously announced sale of the contact measurement portion of its industrial metrology business to Hexagon AB (Stockholmsborsen:HEXAB), in Nacka Strand, Sweden. Hexagon is a multinational engineering company and parent of metrology company Brown and Sharpe, headquartered in North Kingstown, Rhode Island.
The transaction, primarily involving Newport's CEJohansson subsidiary in Sweden, concludes the first step in a two-part plan by the company to divest itself of a majority of its Industrial Metrology Systems Division. The second part of the divestiture involves the sale of the company's U.S.-based non-contact metrology business to a separate strategic buyer. Newport is negotiating purchase agreements with that buyer and expects to complete the transaction during the second quarter of 2002.
Total cash proceeds from both transactions are expected to be in the range of $10 to $12 million, and the transactions are expected to be accretive to Newport's operating results. In 2001, the company's combined metrology operations generated sales of approximately $24 million and incurred operating losses of approximately $9 million.
About Newport Corporation
Newport Corporation is a global leader in the design, manufacture and marketing of high-precision components, instruments and integrated systems to the fiber optic communications, semiconductor equipment and aerospace and research markets. The company's innovative products are designed to enhance productivity and capabilities in test and measurement and automated assembly for precision manufacturing, engineering and research applications. Customers include Fortune 500 corporations, technology companies and research laboratories in commercial, academic and government sectors worldwide. Newport is part of the Standard & Poor's Midcap 400 Index and the Russell 2000 Index.
The statements in this news release, including the expected effects of the transaction on Newport's operating results, are forward-looking statements that involve a number of risks and uncertainties. As discussed in Newport's Annual Report on Form 10-K for the year ended December 31, 2001, assumptions relating to the foregoing involve judgments with respect to, among other things, the ability of Newport to successfully divest certain of its operations; future economic, competitive and market conditions, including those in Europe and Asia and those related to Newport's strategic markets, particularly the fiber optics and semiconductor equipment markets; whether the products offered Newport will continue to achieve customer acceptance; and future business decisions, all of which are difficult or impossible to predict accurately and many of which are beyond the control of Newport. Although Newport believes that the assumptions underlying the forward-looking statements are reasonable, any of the assumptions could prove inaccurate and, therefore, there can be no assurance that the results contemplated in the forward-looking statements will be realized. In light of the significant uncertainties inherent in the forward-looking information included herein, the inclusion of such information should not be regarded as a representation by Newport or any other person that Newport's objectives or plans will be achieved. Newport undertakes no obligation to revise the forward-looking statements contained herein to reflect such events or circumstances after the date hereof or to reflect the occurrence of unanticipated events.