AST Networks` clients benefit from the PBC, Gores Technology Group agreement

The AST Group has been the exclusive distributor of and support partner for Philips Business Communications (PBC) in SA since December 2001. Since then, AST has integrated PBC`s complementary PABX, DECT, IP telephony and telephony management products and applications into its "convergence leadership" portfolio of networking and customer contact solutions and services.

The combination of AST`s service record and the Philips product pedigree has been very successful and AST has been able to show substantial growth in this difficult segment.

On 14 January 2003, Philips Business Communications (PBC) headquarters in The Netherlands, Royal Philips Electronics and Gores Technology Group (GTG) announced a preliminary agreement for the acquisition of PBC by a Dutch affiliate of GTG.

This brings to fruition PBC`s strategic goal of finding a new and committed owner. During recent restructuring at Philips Electronics, PBC was identified as being non-core to the organisation`s future business direction. In Gores Technology Group, PBC has found a strong new owner with a wealth of experience in this environment, one that will support PBC`s strategy to broaden its activities and portfolio as a solutions provider in the area of business communications.

This is a very positive development for all PBC and AST Networks clients, who will benefit from the renewed focus on a comprehensive and class-leading product portfolio.

According to Brian Armstrong, AST Networks MD: "We at AST Networks are very enthusiastic about the proposed deal, and see that it can only impact positively on our clients and Philips end-users. The Philips product range, as it now stands, together with the Philips brand, will continue to be the basis of the business: there is absolutely no threat of radical shifts in the product portfolio or the possible premature end-of-life classification of the core products.

"The new owners of PBC are committed to further developing the product range, investing in complementary and next-generation product sets, all based on the evergreen principle that Philips has always espoused. Furthermore, GTG is intent on preserving and protecting existing and future client relationships, by honouring contracts and commitments and by continuing to support its customers. Indeed, the intrinsic value of the Philips installed customer base and the potential to provide continued and enhanced services and product offerings into this base is undoubtedly a significant part of the attraction of PBC to Gores. And GTG - as an investment holding company - intends to preserve PBC as an operating business, with limited intervention in the organisation and operations of the business."

With headquarters in Los Angeles, GTG is an international acquisition and management company that pursues a strategy of acquiring promising high-technology organisations and managing them for growth. GTG has made a name for itself with its commitment to clients, employees and the continued development of intellectual property. GTG has acquired and managed approximately 40 inter-related but autonomous technology-oriented companies throughout the world. Those companies provide a broad range of technology-based products and services to a substantial client base, representing millions of active users worldwide.

In SA, the AST Group acquired Philips Business Communications in June 2001. The group successfully integrated the South African PBC sales and service organisation into its converged enterprise communications business unit, AST Networks, thus integrating PBC`s world-class capabilities and service and AST`s proven networks services skills to offer a wide range of cutting-edge solutions.