News

Plantronics aquires Ameriphone

01.02.02 - Santa Cruz, California

Plantronics, Inc., (NYSE:PLT) announced that it has acquired privately held Ameriphone, Inc. ("Ameriphone") of Garden Grove, CA. Ameriphone is a leading supplier of amplified telephones and other solutions to address the needs of individuals with hearing impairment and other special needs. Ameriphone will join Plantronics' Walker Division, a leading supplier of amplified telephones, specialty handsets and communication test equipment, in serving the special needs market.

Ken Kannappan, president and CEO of Plantronics stated, "The combination of Ameriphone and Walker brings together two leaders in products that improve life for those with hearing impairment and other special needs. We believe that by joining forces, we will be better able to serve the needs of this growing segment of our population."

"Walker and Plantronics are committed to enhancing personal communications," said Steve Krug, president of Plantronics' Walker Division. "The addition of the Ameriphone product line will extend the scope and depth of Walker's product offerings. Walker and Ameriphone will deliver the most comprehensive range of special needs communications products available from a single manufacturer. These products will be offered through a broad array of distribution channels, including state programs, audiologists and other health care professionals, retail and specialized distributors," Krug added.

Founded in 1977, Ameriphone has established a solid reputation as an innovator in communications solutions for people with special needs. The company offers amplified telephones, text telephones (TTY's), notification systems, emergency response systems and other products to address the requirements of the hearing impaired, deaf and others with special needs. Ameriphone's products have been selected by a number of state programs that provide equipment to those in need, including the nation's two largest programs, California's Deaf and Disabled Telecommunications Program (DDTP) and Florida's Telecommunications Relay, Inc. program (FTRI).

"The Ameriphone team is enthusiastic about joining Plantronics and its Walker Division," said George Cheung, co-founder, president and CEO of Ameriphone. "This will also clearly benefit our customers, who will now have the advantage of Plantronics' service, support and global capabilities."

In its fiscal year ended December 31, 2000, Ameriphone reported net revenues of approximately $11.8 million and operating income of $1.1 million. "We believe this acquisition is financially attractive and fits well within our existing organizational structure. We expect that it will be nominally accretive to earnings per share starting in the first quarter of our next fiscal year. Net assets less cash acquired will be approximately $4.6 million, while goodwill and other intangibles will amount to approximately $5.8 million. Final audited figures for these amounts will be disclosed in our Annual Report and Form 10-K for fiscal 2002," said Barbara Scherer, Plantronics senior vice president and CFO.

About Walker
Founded in 1969 and acquired by Plantronics in 1986, Walker delivers telecommunications solutions for the hearing impaired, handset and test set markets. A world leader in amplifying sound, Walker's solutions are found in consumer telephone products and custom applications requiring a superior sound experience. Amplified consumer telephone solutions enable people with high-frequency hearing loss to hear more clearly and easily when conversing on the telephone. Walker's amplified phone solutions are currently available at most RadioShack stores, select KMarts and specialized distributors. Similarly, high-quality handset solutions are found in demanding environments such as those found on financial trading floors or at the FAA, where precise clarity of sound is critical. As more people begin to address their hearing needs, Walker will be there to provide effective solutions that are simple and easy to use. Information about Walker and its products can be found at www.mywalker.com or by calling (800) 552-3368.

About Plantronics
Plantronics introduced the first lightweight communications headset in 1962 and is recognized as the world leader in communications headsets. A publicly held company with approximately 2,300 employees, Plantronics is the leading provider of headsets to telephone companies and the business community worldwide. Plantronics headsets are also used widely in many Fortune 500 corporations and have been featured in numerous motion pictures and high-profile events, including Neil Armstrong's historic "One small step for man" transmission from the moon in 1969. Plantronics, Inc., headquartered in Santa Cruz, CA, was founded in 1961 and maintains offices in 19 countries. Plantronics products are sold and supported through a worldwide network of authorized Plantronics marketing partners. Information about the company and its products can be found at www.plantronics.com or by calling (800) 544-4660.

SAFE HARBOR STATEMENT UNDER THE PRIVATE SECURITIES LITIGATION REFORM ACT OF 1995:
This press release contains forward-looking statements within the meaning of the Federal securities laws, including, but not limited to, our statement that we expect the transaction to be nominally accretive to our earnings per share in our next fiscal year. The forward-looking statements are based on current information and expectations which are subject to a number of risks and uncertainties. Among the factors that could cause actual results to differ materially from those projected are:

the possibility that we may not realize the anticipated synergies and cost savings from the acquisition;
the possibility that we may not be able to integrate the operations of Ameriphone and our Walker Division effectively;
the possibility that Ameriphone will not achieve the revenues that we believe it can generate;
the possibility that the market for telecommunications solutions for the hearing impaired may differ from our expectations; and
changes in general economic conditions.
Other factors that may cause the combined companies' actual results of operations to differ materially from what is contemplated by such forward-looking statements include factors set forth in the reports Plantronics files with the Securities and Exchange Commission, including, but not limited to, Plantronics' report on Form 10-Q for the quarter ended September 30, 2001.

Plantronics is a registered trademark of Plantronics, Inc. All other products or service names mentioned herein are trademarks of their respective owners.