Emblaze Buys GTD StakeEmblaze Buys GTD Stake

RA'ANANA, Israel -- Emblaze Ltd, the next generation telecom vendor group, announces that Emblaze Mobile, its mobile handset design and manufacturing subsidiary, has acquired a strategic interest in Global Telecoms Distribution plc. Impact on cash from group reserves is negligible.

GTD is one of Europe's leading distributors of multimedia handsets with a 3 1/2 year trading history and 100 staff operating mainly from the UK with offices and operations across Europe. The business enjoys long-term relationships with major retail, distance-sales and independent dealer channel partners, as well as networks including 3, O2, Orange, T-Mobile, Vodafone and others.

The Company is managed by a highly experienced management team led by John Drinkwater, managing director, and Jim Mann, finance director.

Rationale for the transaction

The transaction is in line with Emblaze Mobile's strategy to become a major supplier of advanced handsets to European mobile network operators and is expected to provide the company with greater control and flexibility over its handset distribution as well as enhance its revenue and margins over time.

In addition, the deal will provide Emblaze Mobile with access to GTD's customer base and European network of operator clients. As a result, the deal will accelerate Emblaze Mobile's expansion in Europe as its prime target market.

Commenting on the deal Laurence Alexander, chief executive of Emblaze Mobile, said: "The purchase of a strategic stake in GTD is part of our mission to bring Emblaze's advanced mobile technologies and handsets to the European consumers and is another major step in creating long term value for our shareholders."

Emblaze Systems