HEERBRUGG, Switzerland, Dec. 7, 2001 (PRIMEZONE) -- Leica Geosystems (SWX:LGSN) today announced that it had signed a distribution agreement for its DISTO(tm) product with Lowe's, one of the largest building supply retailers in the United States. The DISTO(tm) hand-held laser meter measures distances to millimeter-accuracy with the push of a button.
"This is a significant breakthrough for our Consumer Products Division," said Klaus Brammertz, President of Leica Geosystems' Consumer Products Division. "Beginning in January 2002, we will begin selling a retail version of our DISTO(TM)4 "Lite" product through the 700 retail outlets of Lowe's. Sold under the name "DISTO(TM) Tape," this product will be targeted to the professional builder and tradesman. At a price point under $400, this product offers an attractive solution for professional builders who need accurate and simple measuring solutions at a reasonable price," said Brammertz.
According to Hans Hess, CEO of Leica Geosystems, "We are naturally very excited about this first step into the enormous U.S. building supply market and believe we have an attractive and competitive product for this customer segment. We do not, however, expect any material sales impact from this agreement in the short-term, and are treating this venture initially as a learning opportunity," said Hess.
In a related statement, Hess stated that he expected the results of the Consumer Products division to be below that of the prior year. "As we mentioned in our Second Quarter earnings release, the construction market is experiencing a major downturn in the United States, Japan and parts of Europe. This has caused sharp reductions in sales from our previous OEM partner, Hilti, which in turn has had a significant impact on current year sales. Considering this impact, we expect full year sales in our Consumer Products Division to be below prior year levels, with a breakeven EBIT in the current year. In our non-OEM business, however, we are seeing continued growth over the prior year. Furthermore, major agreements like the one we just completed with Lowe's are the first steps in our strategy of bringing the laser measuring solution to the much broader retail market. We are still the market leaders in the Hand Held Laser Measuring market and remain confident that our DISTO solution offers a significant value proposition for our customers," said Hess.
DISTO(TM) is a registered trademark of Leica Geosystems.
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