CAD Studio Becomes a New Member
of the AAC Holding

Cesky

1.10.2000:
CAD Studio, a company based in České Budějovice, became a new member of the international holding AAC on 1 October, 2000.
The purpose of the acquisition has been to create another specialized group within the AAC holding, to focus on software development and applications and also on implementation of IT projects with added value. The change will offer to CAD Studio a better opportunity to develop its existing activities, both locally and internationally.
CAD Studio, which has been present on the market for 10 years, ranks among the leading Czech specialists in CAD and GIS services and is a direct partner of Hewlett-Packard and Autodesk. In the field of software development the customers of CAD Studio include not only Czech, but also a number of renowned foreign companies. With the current number of 25 employees the turnover of CAD Studio amounted to 75 million CZK in 1999. This year the turnover is expected to grow by 25%. The company management remains unchanged and the top managers - Karel Veverka and Vladimír Michl - are about to become members of the AAC a. s. managing bodies.
The joint-stock company AAC, now through its subsidiaries one of the leaders on the domestic market in information technologies, computers and consumer electronics, achieved in 1999 the consolidated turnover of 4,5 billion CZK. The business goal of AAC a. s. for 2000 is to increase the turnover to 5,5 billion CZK and gradually prepare the company to enter the capital market.

Frequently asked questions

What are the reasons of this merger?

For CAD Studio there are new ways to accelerate its growth in areas where it has been active for 10 years – not only in the Czech republic but also in other countries. CAD Studio gets the opportunity to contribute to creation of a strong group targeted to value added services. Another reason for CAD Studio is a way to go public as a part of the AAC holding.

AAC enters the market of value added services, software development and solutions. This step increases its presence on the czech market. In AAC holding CAD Studio becomes a kernel around which a new group of value added companies will be created.

So AAC adds the value added segment to its current activities in IT distribution a PC assembly - an important segment not only as for the profit but also from the point of view of the planned IPO.

When did this step happen?

On 1.10.2000

How will change the orientation of CAD Studio?

It will not. Both parties are interested in continuation and strengthening of CAD Studio's orientation to the segments of CAD, GIS, CAD and internet software development and other services. In the hardware area there will be no change as well - CAD Studio concentrates itself on brand names, especially graphical workstations, servers, plotters and other peripherals by Hewlett-Packard.

What is the impact of this merger to the exististing customers of CAD Studio?

None, none negative - existing goals and service offerings remain the same; offered services will broadened.

How big is the share of AAC in CAD Studio?

AAC holding AAC is a 100% owner of CAD Studio spol. s r. o.

What is the price of the contract?

Price was not made public. A major part of the merger was in form of share swap.

Was it a bad economical situation of CAD Studio what was behind this merger?

No. On the contrary - economical results of CAD Studio e.g. after the Q2 of 2000 show 40% increase in comparison with the previous year. In 1999 CAD Studio was awarded HP Corporate Reseller, Autodesk Systems Center, Autodesk TOP Dealer, Best AEC and GIS reseller, Best HP DesignJet reseller. Before this merger CAD Studio also increased its marketshare with takover of CAD activities of an important competition - Minisoft Engineering company. There was a substantial increase in share of services in the company revenue. Half of the volume of services was realized with non-domestic subjects.

What is a long term strategy of CAD Studio?

CAD Studio will continue to target to the areas of CAD, GIS and EDM. With the entry of the strategic partner both the local and foreign activities will be strengthened. Share of services on the revenue will be increased. CAD Studio will lead the future group of companies oriented on value added services. Within two years AAC will make an IPO.

What changes will happen in the management of CAD Studio?

There are no changes in CAD Studio management. Karel Veverka will be still the managing director of CAD Studio and Vladimír Michl the technical manager of the company. Both are also present in the boards of AAC holding.

What is the new company name?

Neither the name nor the legal status of CAD Studio spol. s r. o. (Ltd) is changed.

Will there be any changes in the existing agreements between CAD Studio and its partners?

No, CAD Studio remains a direct partner of HP (HP Corporate Reseller, HP Support Provider) and Autodesk with the highest level of partnership - Autodesk Systems Center, Authorized Training Center and a member of Autodesk Developer Network. Other important partnerships are planned.