NIMBUS WILL INVEST $25 MILLION IN DVD MANUFACTURING
Michael Nobilio
NIMBUS WILL INVEST $25 MILLION IN DVD MANUFACTURING CAPABILITY,
SERVICE IMPROVEMENTS AND CAPACITY INCREASES
CHARLOTTESVILLE, Va., May 17 /PRNewswire/ -- Nimbus CD International
(Nasdaq: NMBS), one of the world's largest independent compact disc
manufacturers, has just announced it will invest $25 million toward
service improvements, east and west coast compact disc production
capacity increases and DVD (digital video disc) manufacturing
capability.
Lyndon J. Faulkner, president and CEO, said, "Nimbus is committed to
offering the most cutting-edge technology available. The
introduction of DVD production capability allows us to get in on the
ground floor of the market for this exciting `next generation'
compact disc. The upgrades will ensure that Nimbus remains a leading
supplier of compact discs to the entertainment, recording and
software industries."
Specifically, Nimbus is installing full DVD production capability,
which includes DVD high-density UV disc mastering, manufacturing, and
fully automated packing equipment capable of handling both DVD and
standard CD production. DVD equipment will be installed in Nimbus'
Charlottesville, Virginia plant in the third calendar quarter of
1996, and will be fully operational in August. Nimbus has also
entered into a number of discussions with vendors on the supply of
MPEG2 compression and authoring services. This would allow Nimbus to
offer the complete range of DVD video and ROM services to its
customers from content design to distribution of finished product.
Digital Video Discs are a new generation of compact disc with a
storage capacity of 4.7 GB, the equivalent to 7 standard CD-ROMs.
The increase in disc capacity will allow DVD discs to carry a
full-length movie in multiple languages and subtitles, along with
sound tracks and videogames. Players for the new generation discs
are expected to be launched this fall, and will be backward
compatible, accommodating all standard CD formats.
In addition, Nimbus has announced the installation of compact disc
manufacturing lines in its recently acquired west coast facility,
Nimbus Software Services, in Sunnyvale, California. Once the
manufacturing lines are added, Nimbus Software Services will be a
full turnkey facility offering CD production, floppy diskette
duplication, print procurement, custom packaging, assembly and
distribution. The expansion in Sunnyvale will be complete with
compact disc manufacturing underway by August. The installation of
CD lines in Sunnyvale gives Nimbus a total annual disc capacity
including DVD in excess of 200 million units worldwide.
Other recent developments in Sunnyvale include the approval of the
site for ISO 9002 certification, the company's first step in securing
certification for each of its four facilities.
The company is also upgrading its worldwide MIS system, allowing for
full electronic data interchange (EDI) capability between plants and
customers. The upgrade will allow customers direct access to
inventory, order processing, and shipping information on demand. The
MIS system changes are an integral part of an international
continuous improvement program undertaken by the company.
Nimbus' UK facility in Cwmbran, South Wales will also receive a
significant investment in the expansion of capacity and services in
the form of new production lines which can be easily converted to DVD
production. Fully automated packing and fulfillment equipment will
also be installed. Nimbus is one of the world's leading, independent
manufacturers of compact discs distributed throughout North America,
the United Kingdom and Continental Europe. Its operations service
the software, entertainment and recorded music industries. In 1984,
Nimbus established one of the world's first CD pressing facilities in
Europe and continues to be a front-runner in offering
state-of-the-art manufacturing innovations such as Enhanced CD (CD
EXTRA), 3-D i*d(TM) holograms, and magazine-quality offset printing.
Nimbus' corporate headquarters and east coast manufacturing
facilities are located in Charlottesville, Virginia, with additional
facilities in: Provo, Utah; Sunnyvale, California; and Cwmbran, South
Wales. U.S. sales locations include: Charlottesville, Virginia;
Atlanta, Georgia; Gardena, California; Short Hills, New Jersey, and
Sunnyvale, California.
CONTACT: Steve Minkel, chief financial officer of Nimbus CD
International, ext. 371; or Lorri Haney, marketing manager of Nimbus
Manufacturing, ext. 457, 804-985-1100; E3 Booth #5014, Petree Hall