Seagate-eSys Distribution Tie-up ends

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.