SONICblue And LOEWE Agree To Conclude U.S. Marketing And Distribution Agreement

22-Oct-01

LOEWE AG and SONICblue? Incorporated jointly announced that they have mutually agreed to end their marketing and distribution relationship, effective December 31, 2001. Sensory Science Corporation, recently acquired by SONICblue, had been marketing and distributing LOEWE-branded digital direct-view televisions in the United States under a three-year agreement, which is set to expire at the end of this year.Under the terms of the agreement, SONICblue will support marketing, sales and service responsibilities during the transition period which will extend through the duration of the contractual relationship. Effective January 1, 2002, LOEWE will market its own products through a wholly owned U.S. subsidiary and become responsible for all sales, marketing and service activities.""We continue to build equity in the SONICblue brands and it is our intent to focus our energies on products and relationships that further strengthen our brands,"" said Ken Potashner, CEO and Chairman, SONICblue. ""It is our belief that an extension of our marketing and distribution agreement with LOEWE would be inconsistent with the emphasis we are placing on building our brands. We see our parting of ways as a positive progression for both companies and a natural evolution of the relationship.""""Sensory Science has done an admirable job of positioning LOEWE in North America as a premium brand. We believe that the future growth of the LOEWE business and brand name in America will require an organization that is solely dedicated to and focused on LOEWE business. Therefore, we have decided to establish LOEWE America, a wholly owned subsidiary of LOEWE AG,"" said Dr. Hecker, CEO, LOEWE. For more information about LOEWE AG, visit www.loewe.de. For more information about SONICblue, visit www.sonicblue.com.

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http://www.loewe.de
http://www.sonicblue.com