Tut Completes VTC Purchase

Has completed its acquisition of VideoTele.com, a subsidiary of Tektronix

November 8, 2002

1 Min Read

PLEASANTON, Calif. -- Tut Systems,Inc. (Nasdaq: TUTS), a leading provider of broadband systems for residential and multi-tenant unit markets, announced today that it has completed its acquisition of VideoTele.com (“VTC”), a subsidiary of Tektronix, Inc. The transaction, which was approved this week by the shareholders of VTC, is expected to enable Tut Systems to deliver digital headend and high-capacity digital video switching products for telecommunication service providers. Tut Systems also plans to capitalize on VTC’s industry leading video trunking solutions and its own broadband data transport products for government, education and private campus environments.Under the terms of the agreement, Tektronix will receive 3,283,597 shares of Tut Systems’ common stock and a five-year note for approximately $3.59 million as total consideration for VTC. The final principal amount of the note shall be the difference between the transaction value of approximately $6.8 million and the final value of the common stock, as determined by computing the average closing price of Tut Systems stock, not to exceed $1.10 per share, from October 28, 2002 through November 29, 2002, a period of 32 days. The final principal amount of the note will decrease from the amount determined on the closing date if the average closing price increases over the 32 day period and the final principal amount of the note will increase if the average closing price decreases over the 32 day period.“We are very pleased with how quickly and efficiently we were able to close this transaction,” commented Sal D’Auria, president and CEO of Tut Systems. “It is a true testament to the expertise and quality of the VTC management team.”Tut Systems Inc.

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