18th Jun 2007 13:01
Emblaze Ltd18 June 2007 Emblaze Ltd. ("Emblaze" or "the Group") SALE OF HOLDINGS IN BLUEPHOENIX SOLUTIONS LTD. Over $64 million Increase in Emblaze Consolidated Cash Position Ra'anana, Israel, 18 June 2007 - Emblaze Ltd (LSE:BLZ) announces that its groupcompany, Formula Systems (1985) Ltd. (NASDAQ & TASE: FORTY) ("Formula"), aleading provider of technology, software and IT products, has entered into anagreement to sell 8,038,526 ordinary shares of BluePhoenix Solutions Ltd.(NASDAQ: BPHX), provider of value driven modernization solutions for legacyinformation systems, representing all of Formula's holdings in BluePhoenix, to anumber of international institutional investors for approximately $8 perordinary share, payable in cash on completion. As disclosed in the financialreports of BluePhoenix for the year ended 31 December 2006, the gross assets ofBluePhoenix at that date were $127.46 million and the net profit of BluePhoenixfor the period then ended was $4.67 million. Following this transaction and last week's announcement on Sapien's $20m capitalraise, Formula's net asset value as of today has increased by an average of 44%to $272.3 million since Emblaze acquired the group seven months ago. Thesignificant increase in cash reserves will allow for further investment inEmblaze / Formula group companies and additional M&A transactions. Guy Bernstein, Chief Executive Officer of Emblaze said: "The sale of BluePhoenixrepresents an execution of our strategy to restructure the group and createsignificant increase in shareholders value. The cash infusion of over $64million will enable us to pursue further business developments with the interestof the increasing value of our assets." Completion of the sale of the ordinary shares is expected to take place on June18, 2007 and is subject to customary closing conditions. Enquiries: EmblazeHadas Gazit, Hagit Gal + 972 9 7699302/ 339 Corfin CommunicationsHarry Chathli, Neil Thapar +44 20 7929 8989 Eisenberg-Eliash LTD., Investor &Public relations (Israel)Amir Eisenberg +972 3 7538828 / +972 52 8260285 About Emblaze Emblaze Ltd., whose shares have been listed on the London Stock Exchange since1996 (Ticker: BLZ), is a group of companies sharing a common mission to providea wide range of information technology products and services worldwide. Thegroup's portfolio includes: Emblaze Mobile, a new breed in handsets design andmanufacturing; ZONE-IP (LSE: ZIP) a provider of IP technologies and owner ofEmblaze VCON, a leading provider of wireless video communications technologiesand conferencing solutions for operators and enterprise markets over IPnetworks; Orca Interactive (LSE: ORCA), provider of Interactive Television IPTVmiddleware for Video On Demand (VOD) and broadcast services, aimed at Telecom,cable and xDSL operators; emoze, a free global Push Email service for mobiledevices that will push send your Emails and PIM data to you anywhere and to anydevice and Visual Defence (LSE: VDI), a provider of wireless and IP videosolutions for military and homeland security markets; Formula Systems Ltd(NASDAQ & TASE:FORTY), a global solutions provider of technology, software andIT solutions for telecommunications companies, operators and a wide range ofsectors. The Formula portfolio includes: Magic Software Enterprises (NASDAQ &TASE: MGIC), Sapiens International Corporation N.V. (NASDAQ & TASE: SPNS) andMatrix (TASE: MTRX) This information is provided by RNS The company news service from the London Stock ExchangeRelated Shares:
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