Cabot Microelectronics and Marketech International Corporation Announce Modification of Distribution Agreement
August 31 2005 - 7:02AM
Business Wire
Cabot Microelectronics Corporation (Nasdaq:CCMP) and Marketech
International Corporation (TAIEX:6196) announced today the
modification of their distribution agreement. Under the revised
agreement, which is effective as of today, Cabot Microelectronics
will sell its products directly to customers in Taiwan, and not
through any other party, as of April 1, 2006. Marketech will
continue to distribute Cabot Microelectronics' products in China.
The parties intend for Marketech to also continue to be Cabot
Microelectronics' provider of logistics and support services to
customers of Cabot Microelectronics in Taiwan. "We have had a long
and successful relationship with Marketech International
Corporation, and we look forward to continuing our partnership with
them in many significant areas," said William P. Noglows, chairman
and chief executive officer of Cabot Microelectronics. "In
furtherance of one of our key strategies of getting closer to our
customers, we have decided to sell our products directly in Taiwan,
where several of our most important customers are located. This
strategy, which we have developed over time and which we already
have successfully implemented in other parts of the world, will
allow us to further strengthen our solid relationships with our
customers and directly bring to them the full capabilities of our
organization. We will be working with Marketech over the next seven
months to position our organization to provide seamless transition
and support to our customers. Also, as a continuation of our
fruitful collaboration with Marketech, we are enthusiastic about
working together such that they continue to provide valuable
logistics and other services in support of our customers in Taiwan.
In addition, Marketech will continue to serve as our distributor in
China, a growing area of strategic importance to our customers and
Cabot Microelectronics." "We value our relationship with Cabot
Microelectronics and will work closely with the company to ensure
the highest level of customer satisfaction during this transition,"
said Margaret Kao, chairman and chief executive officer of
Marketech International Corporation. "We look forward to building
on the strong base that we have formed with Cabot Microelectronics
and to the next phase of our relationship in supporting them and
customers who are the foundation to the success of our
organizations." Cabot Microelectronics currently anticipates that
during the transition period from Marketech distributing its
products to the company beginning to sell directly to its customers
in Taiwan, revenue in Cabot Microelectronics' second fiscal quarter
of 2006 is likely to be reduced by approximately twelve million
dollars ($12 million) due to the expected corresponding inventory
reduction by Marketech during such period. Cabot Microelectronics
intends to provide more information regarding its transition to
selling directly to its customers in Taiwan at its next regularly
scheduled quarterly conference call on October 27, 2005. About
Cabot Microelectronics Corporation Cabot Microelectronics,
headquartered in Aurora, Ill., is the leading supplier of CMP
slurries for polishing various materials used in semiconductor
manufacturing processes. The company's products play a critical
role in its customers' manufacturing processes, enabling the
manufacture of smaller, faster and more complex devices. Cabot
Microelectronics is traded on Nasdaq under the symbol CCMP. For
more information on Cabot Microelectronics, visit our website
www.cabotcmp.com or call (630) 499-2600. About Marketech
International Corporation Marketech International Corp. is a
professional technology service provider dedicated to advanced
process equipment and raw materials support service, total solution
of facility integration and customized equipment manufacturing.
Marketech fully supports the development of the semiconductor and
LCD industries within the Asia-Pacific territory. Marketech
provides various services to satisfy the demand of process
equipment, raw material and total turnkey solutions, in addition to
industrial safety and environmental protection solutions. With
headquarters in Taipei, Taiwan, Marketech has global offices in
China, Singapore, Japan and Korea. For more information, visit
Marketech's website at www. micb2b.com. Safe Harbor Statement This
news release may include statements that constitute
"forward-looking statements" within the meaning of federal
securities regulations. These forward-looking statements may
include statements related to future sales and operating results,
company and industry growth and trends, growth of the markets in
which the company participates, international events, product
performance, new product introductions, development of new
products, technologies and markets, the acquisition of or
investment in other entities, and the construction of new
facilities by Cabot Microelectronics. These forward-looking
statements involve a number of risks, uncertainties, and other
factors, including those described from time to time in Cabot
Microelectronics' filings with the Securities and Exchange
Commission (SEC), that could cause actual results to differ
materially from those described by these forward-looking
statements. In particular, see "Risks Relating to Our Business" in
Management's Discussion and Analysis in our quarterly report on
Form 10-Q for the quarter ended June 30, 2005, and our Annual
Report on Form 10-K for the fiscal year ended September 30, 2004,
both filed with the SEC. Cabot Microelectronics Corporation assumes
no obligation to update this forward-looking information.
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