Verbatim acquires SmartDisk hard disk drive company

Verbatim and its parent company Mitsubishi Kagaku Media (MKM), announced the purchase of substantially all of the assets of SmartDisk's external hard drive (HD) and digital imaging business. The acquisition, which includes physical assets, patents, trademarks, technology, engineering and marketing expertise, was effective on June 30, 2007. The purchase price has not been disclosed. The Verbatim brand delivers data storage solutions with the latest technologies, the highest quality, and features that add value for the consumer. The company’s role as an innovator is especially apparent in the magnetic and optical storage markets where it has been known as a pioneer for more than 30 years.

SmartDisk Corporation is a leading provider of portable storage and digital imaging products that enable people to enjoy, share, manage and preserve digital content. The Company’s family of innovative products is aimed at “Simplifying the Digital Lifestyle” for consumers and is available through top-tier domestic and international retailers as well as a strong network of e-commerce and other distribution channels.

While SmartDisk enjoys market-leading positions in many of its product categories, due to its size the Company does not have access to the financial resources of many of its larger competitors that would allow the Company to fully exploit its presence in the market. Furthermore, as a consequence of its NASDAQ delisting in 2003, the Company has approximately 5,200 shareholders and continues to incur meaningful costs on an annual basis to communicate with its shareholder base.

Harpeth Capital was hired as exclusive financial advisor to pursue a transaction with a strategic party that could leverage the Company’s leading market position, product base, valuable patents and strong distribution channels, as well as realize significant synergies by reducing/eliminating administrative, research and development, and other operating costs. The process included conversations with over 50 domestic and international companies.