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Jasper Huitink : September 10th 2005 - 12:30 CET

SmartDisk Acquires Zio Corporation


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SmartdiskSmartDisk Corporation : A provider of portable, network and multimedia storage products and technologies, today announced that it has acquired the business and certain assets of Zio Corporation, a privately held market leader in digital media readers, video editing and mobile telephone products. Terms of the acquisition were not disclosed. Headquartered in California, Zio's products include the Dazzle, CameraMate and FoneMate brands and are sold through leading retailers in the U.S. and Europe. Plans call for Zio's U.S. offices and operations to be consolidated into the SmartDisk Fort Myers, Florida headquarters location. Key management personnel will remain at Zio to aid in the integration of the business and sales activities.
SmartDisk Acquires Zio CorporationZio Corporation - Introduction
the new name behind the best selling brand of digital media readers Dazzle. It’s a new name, but the Zio team is the same group of committed professionals that has worked over the past few years to build Dazzle products into the current number one brand position in the video editing and digital media reader categories in the US and the UK. We intend to keep Dazzle as the number one brand in digital media readers for digital cameras, MP3 players, mobile phones and PDAs.

SmartDisk acquires - Explanation
"Zio's products broaden the SmartDisk line and add premier brands to our market offerings," said Michael S. Battaglia, President and Chief Executive Officer of SmartDisk Corporation. "Zio also adds valuable new partners, both retailers on one hand and suppliers on the other. The addition of Zio will increase SmartDisk revenues, enhance our profitability, and expand our share of the rapidly growing digital lifestyle market." Andrew Warner, Chief Executive Officer of Zio, noted "Zio and SmartDisk are a natural fit, serving the same digital consumer market and reaching consumers through similar channels of distribution," Zio's market leadership position with digital media readers and the potential of our video and mobile phone solutions, together with SmartDisk's size and scale, creates a winning combination.

About Zio Corporation
Zio Corporation was founded by management from the company that formerly developed and sold the Dazzle brand of products, SCM Microsystems, Andrew Warner and Jack Battaglia. Dazzle digital media readers are the sole focus of our business. Our mission is to build on and reinforce this position by providing products with superior technology and innovative design at an affordable price.

About SmartDisk Corporation
SmartDisk is a leading provider of portable, network and multimedia storage products and technologies that enable people to enjoy, share and preserve digital content and information. Headquartered in the U.S., with operations in Europe and Asia, SmartDisk sells and supports its products worldwide.





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