Logitech Acquires Intrigue Technologies, Maker of Acclaimed Harmony Remote Controls

(Auszug aus der Pressemitteilung)

FREMONT, Calif., May 5, 2004 and ROMANEL-SUR-MORGES, Switzerland, May 6, 2004 – Logitech International (SWX: LOGN)

(Nasdaq: LOGI) today announced that it has purchased the
maker of the highly acclaimed Harmony Remote advanced
remote controls – privately held Intrigue Technologies of
Canada – for $29 million in cash, plus a possible performancebased
payment, tied to reaching certain future remote control
revenues. Intrigue, which will remain in Mississauga, Ontario,
has pioneered an innovative approach to solving the problem
faced by most consumer households – too many complicated
remote controls. Intrigue offers a line of advanced remote
controls that are affordable, easy to set up and simple to use.

The acquisition of Intrigue is part of Logitech’s strategy to
expand its presence in the digital living room. The company
already is a leading provider of products for the living room,
with its controllers and audio products for console gaming,
which have enjoyed robust sales growth during the last twelve
months. Logitech plans to build on this momentum by
combining its experience in control devices for the PC – most
notably, the computer mouse – with Intrigue’s expertise and
technology, to become the leader in an emerging market
category.

“This acquisition allows us to position Logitech at the
convergence of consumer electronics and personal computing
in the living room,” said Guerrino De Luca, Logitech president
and chief executive officer. “Logitech’s personal interface
products are the point of contact between people and the
digital world, the ‘last inch’ – in homes, in offices and on the go.
Logitech intends to be the defining and leading provider of the
last inch in the living room and in the digital, connected home.
The acquisition of Intrigue comes at the right time and provides
the right assets to help us firmly establish our leadership.”

“As the leader in computer mice, with more than a half billion
units sold, Logitech understands how a well-designed, easy-touse
control device can dramatically improve user effectiveness
and comfort,” said David Henry, Logitech senior vice president
of the Control Devices Business Unit. “We believe that the
advanced remote control will establish itself as ‘the mouse of
the digital house’ and that Logitech is uniquely positioned to do
for the emerging digital devices in the living room what it has
already done for the PC.”

Until recently, advanced remote controls have been too hard to
set up, too hard to use, or too expensive. With the affordable
Harmony Remote, people can easily customize the advanced
remote for their own digital-entertainment setup using the
Harmony Remote website. Once configured, the Harmony
remote organizes entertainment control into simple activity
selections like “Watch TV” or “Watch a DVD”. Intrigue’s awardwinning
products are currently available through selected
retailers and specialist channels in the United States and
Canada.

“Intrigue was founded on the idea that there can be widespread
market adoption of an activity-based advanced remote control
that is affordable, easy to configure and easy to use,” said Bryan
McLeod, chief executive officer of Intrigue Technologies. “Now,
Co-founders Glenn Harris and Justin Henry and I look forward to
being part of Logitech and to accelerating delivery on this
promise by leveraging the company’s strong brand, global
distribution, and expertise in engineering, manufacturing and
supply chain management.”

“The market for convergence and advanced entertainment
remote controls that provide simple solutions for using today’s
complex entertainment systems will grow as consumers
become aware of them,” said Tricia Parks, president of market
research firm Parks Associates. “Our early estimates indicate
that the worldwide market for these types of remote controls
will be approximately $500 million in 2004, with annual future
growth in double digits.”

“The category of advanced remote controls is in its infancy,”
said Bob O’Donnell, senior industry analyst for IDC. “There is
potential to completely transform this category and accelerate
its growth, when you combine the convergence of the PC and
consumer electronics with innovative new concepts and
designs.”

Logitech expects the acquisition of Intrigue Technologies to add
$10 to $20 million in sales during the current fiscal year, with an
immaterial effect on operating income. “Beyond FY 2005,” said
De Luca, “We expect the category of advanced remote controls
to deliver strong profitable growth.”

Intrigue Technologies
Logitech