eSys – Seagate distribution tie-up comes to an end

eSys – Seagate distribution tie-up comes to an end

New Delhi, November 08, 2006 – eSys Technologies Pte Ltd (eSys) has been informed by Seagate that Seagate has terminated the Distribution Agreements (Agreements) between it and eSys.

During the current quarter, Seagate had requested an intrusive audit of eSys’ documents. eSys has declined access to a wide-ranging series of requests, citing in particular its commitment to the confidentiality of data relating to its Customers and other Vendors.

There have been protracted negotiations starting 2nd October 2006, during which time Seagate has repeatedly refused to provide shipments of their products as required under the Agreements. Despite this, and as a sign of good faith, eSys has continued to pay Seagate for Invoices raised, bringing down outstandings from $103 Mln to $50 Mln, a fact acknowledged by Seagate as well. eSys has a long history of meeting its commercial liabilities in full, and intends to continue this record.

eSys strongly refutes any allegations of irregularities in its compliance of the Agreements. Over the last six years, eSys has been supportive of Seagate’s and Maxtor’s strategies, even at some cost to itself and its shareholders. Unfortunately, the intrusive nature of the audit would not be justifiable to our worldwide business partners under normal business practices.

eSys is committed to continuing its robust growth in the field of Technology Distribution, and looks forward to an amicable solution to the current issue, which will benefit the Channel. The Indian entity, eSys Information Technologies Ltd., however remains unaffected by the recent development as the Seagate business was not a part of eSys India product portfolio.

For more information, please contact:
Hitesh Dhingra
eSys Technologies Pte. Ltd.
Mobile: 9350554942
Email: hiteshd {at} esysmail(.)com

OR

Sundeep Mehta/Hemant Dixit/Tribhuwan Joshi
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