CDW Says Bridgeport Holdings Claim is Without Merit
VERNON HILLS, Ill. - March 3, 2005 - - CDW Corporation (NASDAQ: CDWC) said today that a civil claim filed against it in the United States Bankruptcy Court in Delaware by Bridgeport Holdings, Inc. Liquidating Trust (the Liquidating Trust) is without merit. The Liquidating Trust alleges that CDW did not pay "reasonably equivalent value" for the Micro Warehouse assets purchased by it in September 2003.
"CDW plans to vigorously contest the Liquidating Trust's claim. CDW is confident that it paid fair value for the assets that were purchased in a transaction that provided substantial benefits to Micro Warehouse and its creditors," said Christine A. Leahy, general counsel, CDW. CDW expects the outcome of this claim will not have a material effect on its financial condition.
CDW added that Micro Warehouse bankruptcy filings clearly indicate that the CDW transaction was approved by Micro Warehouse's pre-petition secured lenders and the Micro Warehouse board of directors. The same filings indicate Micro Warehouse sought interest in purchasing the company from various strategic industry participants, including CDW.
The possibility of a claim being brought had been disclosed in CDW's previous filings with the Securities and Exchange Commission. Statements made in the Liquidating Trustee's claim are consistent with previous public filings made in the bankruptcy court as early as January 2004.
In September 2003, CDW paid approximately $22 million for selected assets of Micro Warehouse, including certain inventory, intellectual property and customer information. CDW also provided Micro Warehouse with a put option to purchase certain equipment located in Micro Warehouse's former distribution center for approximately $8 million and agreed to collect Micro Warehouse's existing trade receivables for the benefit of Micro Warehouse.
Forward-Looking Statements
Any forward-looking statements contained in this release are based on the Company's beliefs and expectations as of the date of this release and are subject to certain risks and uncertainties which may have a significant impact on the Company's business, operating results or financial condition. Should any risk or uncertainty materialize, or should underlying assumptions prove incorrect, actual results or outcomes may vary materially from those described in the forward-looking statements. Factors affecting the Company's business and prospects are discussed in the Company's filings with the Securities and Exchange Commission.
About CDW
CDW® (NASDAQ: CDWC), ranked No. 376 on the FORTUNE 500, is a leading provider of technology solutions for business, government and education. CDW is a principal source of technology products and services including top name brands such as APC, Apple, Cisco, HP, IBM, Microsoft, Sony, Symantec, Toshiba and ViewSonic.
CDW was founded in 1984 and today employs approximately 3,800 coworkers. In 2004, the company generated net sales of approximately $5.7 billion. CDW's direct model offers one-on-one relationships with knowledgeable account managers; purchasing by telephone, fax, the company's award-winning CDW.com Web site, customized CDW@work™extranets, CDWG.com Web site and macwarehouse.com Web site; custom configured solutions and same day shipping; and pre- and post-sales technical support, with more than 120 factory-trained and A+ certified technicians on staff.
Additional information can be found by visiting CDW.com.
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