Contact Information: Contact: Richard K. Arter Investor Relations 941-362-1200 Tricia L. Fulton Chief Financial Officer 941-362-1200
Sun Hydraulics Pursues Equity Stake in High Country Tek, Inc.
| Source: Sun Hydraulics Corporation
SARASOTA, FL--(Marketwire - November 1, 2007) - Sun Hydraulics Corporation (NASDAQ : SNHY )
today announced its intention to acquire up to 48% of the shares of High
Country Tek, Inc. (HCT), which would represent approximately 36% of its
shares on a fully diluted basis. The price is expected to be $2.4 million.
The proposed transaction contemplates that Sun Hydraulics will have the
option to purchase the remaining outstanding stock after December 31, 2009.
Closing is subject to certain conditions, including approval by HCT
shareholders.
HCT, located in Nevada City, California, designs and manufacturers
ruggedized electronic/hydraulic control solutions for mobile equipment
markets; products include digital valve controllers, designed specifically
for the hydraulic industry, and a patented suite of software products
called Intella™. The products' modular architecture allows customers to
add functionality, reliability, and precision, while preserving their
investment in prior application development. More information on HCT can be
found at their website, www.highcountrytek.com.
"HCT adds products, sales personnel, and system integration capabilities
that dovetail into our business strategy," commented Allen Carlson, Sun
Hydraulics' President and CEO. "This investment is complementary to our
electro-hydraulic efforts, including our earlier investment in WhiteOak
Controls. HCT will help Sun get closer to our customers and better
understand their electro-hydraulic system requirements. We expect our
relationships with HCT and WhiteOak will help us secure additional
integrated package and system business that will result in increased market
share."
Sun Hydraulics Corporation is a leading designer and manufacturer of high
performance screw-in hydraulic cartridge valves and manifolds for worldwide
industrial and mobile markets. For more information about Sun, please
visit our website at www.sunhydraulics.com.