Sagem Communication Announces the Acquisition of Interstar Technologies; Takeover of Montreal-Based Interstar Technologies Solidifies Sagem Communication's Position as Global Leader for Fax over IP

PARIS & MONTREAL--()--May 9, 2006--Sagem Communication (SAFRAN Group), a global leader in the fields of mobile and broadband communications, announced today the acquisition of Interstar Technologies Inc. (www.faxserver.com) and the creation of a new Sagem Interstar subsidiary based in Montreal, Quebec. Interstar designs, develops and distributes IP based fax servers for converged communications networks.

Interstar Technologies Inc., headquartered in Montreal, Quebec, Canada, is the pioneer and recognized world leader in Fax over IP (FoIP) servers. Interstar Technologies started a revolution in the fax server space in 1996 with the launch of LightningFAX(R), an analog based solution and then reinvented the fax server in 2002 with the introduction of the innovative XMediusFAX(R) product line based on IP technology. This IP based fax server solution utilizes the ITU real-time T.38 FoIP protocol thus eliminating the need for specialized communications hardware. The solution is aimed at both enterprise customers and service providers alike. Thousands of Interstar products are installed in over 30 countries in companies of all sizes representing a broad range of industries including finance, healthcare, manufacturing, government agencies as well as telecommunications and IT service providers.

Sagem Communication is a leader in the global fax industry with a dominant market position in the fax terminal sector, such as thermal transfer terminals, as well as in fax servers. The company markets solutions aimed at the small and medium size businesses as well as major accounts enabling the use of T.37 and T.38 compatible printing terminals.

"The acquisition of Interstar technologies supports our market penetration and growth strategies by allowing us to bring together the technologies required for the delivery of an end-to-end solution that merges the ease of use of our traditional document management and fax solutions with an all IP communications architecture", said Patrick Sevian, Deputy Chief Executive Officer of Sagem Communication.

"This acquisition will allow us to significantly expand our activities in North America and to become the number one Fax over IP technology provider in the world."

A world leader

For the fourth consecutive year, Interstar leads the industry with a 75% market share of real-time FoIP servers according to the latest Davidson Consulting report. This market segment is expected to grow at a rate of 10% per year through 2009.

Interstar Technologies has partnered with several of the world's leading providers of VoIP technologies and network infrastructures to certify their products as interoperable with the company's T.38 based XMediusFAX(R) products.

Combining Sagem Communication's and Interstar's R&D: an expanded market opportunity for the future

Interstar's expertise in the design and development of FoIP servers coupled with the Sagem Communication's expertise in the development of multifunction terminals integrating fax will allow the combined entity to offer innovative and efficient solutions perfectly integrated with the IP world.

About Sagem Communication

Sagem Communication (SAFRAN Group) is a major global player in broadband and mobile communications markets, having secured a leading position through technology innovation. SAGEM is recognized for its products in the following industry sectors: mobile handsets, printing terminals, residential terminals, digital television, and electronic metering. For more information please visit our Website: www.sagem.com and www.safran-group.com.


Le Ponant de Paris
27, rue Leblanc
75015 Paris
www.sagem.com
www.safran-group.com

Contacts

Sagem Communication
Press Contact:
Fabien Darrigues, +33 (0) 1 56 21 20 41
f.darrigues@champsmedias.fr

Contacts

Sagem Communication
Press Contact:
Fabien Darrigues, +33 (0) 1 56 21 20 41
f.darrigues@champsmedias.fr