Aachen, December 1, 1997

ELSA now a Stock Corporation

German PC computer graphics and datacoms company prepares for the future

Aachen, Germany - ELSA GmbH of Aachen, Germany, a leading manufacturer of PC periphery solutions for computer graphics and data communications, has now been converted to ELSA AG, a stock corporation.

In fiscal year 1996, ELSA, with an average of 330 employees, achieved revenues under German statutory accounting standards of DM 226.2 million (US$ 131 million), nearly doubling the previous year's revenues of DM 120 million. The company's business in 1996 was concentrated in Germany with around DM 197.3 million (87%) in sales in the domestic market. The remaining DM 28.9 million (13%) in sales were generated in foreign markets, a significant increase from the prior year. In 1997, the company has seen substantial growth in foreign sales. The company anticipates that foreign sales will continue to expand in 1998.

ELSA has been focusing on international business and globalization for the past several years. The conversion to a stock corporation will provide the company with the ability to raise a strong capital base. This is intended to establish the financial foundation for ELSA's continued effort to expand its global leadership position in professional graphics for the PC and to expand its data communications activities. The success of the globalization effort is evidenced by strategic partnerships with leading PC manufacturers such as Compaq, Dell, and Siemens Nixdorf. Driving factors in ELSA's international operations are its US subsidiary ELSA Inc., located in Santa Clara, California, as well as sales offices in Taiwan and Japan, which contribute significantly to the development of ELSA's overseas market share and which are currently being transformed into independent companies.

Theo Beisch, Peter Gueldenberg and Josef Beisch are now official members of ELSA AG's management board. Theo Beisch, President and CEO, will assume responsibilities for the international OEM business, research and development and investor relations. Peter Gueldenberg, formerly director of sales of ELSA GmbH, will act as General Manager and assume responsibilities for sales and marketing, including technical support and product management. The former director of finance, accounting and operations, Josef Beisch, will serve as CFO and COO in charge of finance, operations and human resources.

ELSA was founded in 1980 and today has approximately 450 employees. ELSA's headquarters are located in Aachen, Germany, and it has a subsidiary in Santa Clara, California, and branch offices in Taipei, Taiwan and Tokyo, Japan. ELSA develops and manufactures hardware and software periphery components for PC graphics and data communications. The product range includes modems, ISDN adapters, videoconferencing systems, ISDN routers, high-resolution graphics boards and color monitors. ELSA has provided 17 years of engineering excellence and experience, high-quality and innovative products as well as dedicated customer support and service.

All names mentioned may be trademarks or registered trademarks of their respective owners. The ELSA logo is a registered trademark of ELSA AG.

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