Press Releases WizCom Technologies Ltd. Acquires Nextec Ltd., Rising Star in the Field of 3D Scanning and Digitizing June 6, Jerusalem, Israel - WizCom Technologies Ltd. (WizCom) (Neuer Markt:WZM,WKN:915 856) world leader in hand held scanning devices and developer of the Quicktionary/ Quicklink line of products, is pleased to announce the final acquisition of Nextec Ltd., a leading supplier of non-contact 3D inspection technologies, products and integrated solutions and creator of the revolutionary Wizprobe and Hawk family of products. Nextec, founded in 1996, has developed a patented, proprietary 3D optical scanning and digitizing technology. This is embedded in the WIZprobe, Hawk and Hawk Kit line of products. WIZprobe is a non-contact, optical laser-scanning sensor, which quickly provides users with an accurate, highly reliable geometric point cloud of 3D objects. The results can be utilized in reverse engineering and quality control applications. WIZprobe has successfully been integrated with the Mitutoyo CMM (Coordinate Measurement Machines). The Hawk line of products featuring Wizprobe, the latest in laser scanning technology, can scan and verify even the most minute details on any 3D object, regardless of material, shape, color and surface finish. Even very shiny surfaces can be measured without being painted. The Hawk Kit is comprised of the WIZProbe, Hawk Software and Hawk high-speed motion controller. Designed and manufactured as an upgrade, Hawk Kit can be used as an add-on package for CMM or other 3D motion platforms. Its addition creates a dual-purpose machine, which offers the ultimate solution for high-precision 3D digitizing and measurement available in the market today. The ensuing machine can be used either as a CMM or as a digitizer. The Hawk Kit was successfully integrated onto the CMM of Brown & Sharpe DEA, Coord3 and Accurate Gauging. It has been exhibited in professional trade shows held in China, USA, Germany and Italy. Additional leading CMM manufacturers are currently evaluating the new Hawk Kit. WizCom has acquired one hundred percent of Nextec's assets including intellectual property and know how. WizCom shares, in the amount of 5.25% of the company's equity, financed the acquisition. Nextec management and shareholders will be continually remunerated in accordance with a revenue milestone plan. If revenue and profit goals are met, they will receive additional shares. These will not exceed a total equity holding of 18%. Nextec will utilize this sturdy grounding to begin exploring new vertical markets. By acquiring the Nextec product line, WizCom has expanded its current technological offering, enabling the company to address itself to OEM and manufacturing markets. WizCom will no longer be completely dependent on the consumer electronics sector, as it will be moving into a market, which will have the potential of greatly improving the gross margins of the group. WizCom and Nextec have a great deal in common, even though their products target different markets. Both companies have rich backgrounds in CCD, CMOS and laser technologies as well as advanced image processing. They both possess patented technologies and are innovators in their fields. "We see the relationship between the two organizations as one of synergy", says Erez Meltzer, Executive Chairman of the Board of WizCom Technologies. WizCom's experiences in Product Marketing Management as well as its human resources in R&D and Business Development have the potential of empowering Nextec, making it an important profit center for WizCom. Since the release of Quicktionary, WizCom's flagship product, in 1997, the company's R&D team has surmounted numerous hurdles in the field of electro optics. "As experts in this field, we are extremely impressed with the strides that have been made by Nextec and recognize the value of the company and its achievements", says Meltzer. "We anticipate that this acquisition will assist us in maintaining our position of technological leadership in this market". Since its inception, Nextec has established a solid basis of OEM customers including Mitutoyo, Japan; DEA- Brown & Sharpe, Italy and Coord3, Italy. End users include organizations such as Siemens Mobile Phones, Denmark, Hewlett Packard (HP) USA, Nokia Finland and Nokia USA. WizCom views this impressive portfolio of major world corporations as a sign of Nextec's technological acumen, which has assisted the company in quickly achieving a principal position in this market. "The cooperation with WizCom will have the potential of strengthening Nextec and enabling the company to continue our worldwide endeavors", says Danny Shacham, Founder of Nextec Ltd. "I believe that this collaboration will have the power to assist Nextec in maintaining its superiority in the 3D non-contact scanning and digitizing market and fully exploiting its recent technological and marketing initiatives. We value WizCom's top tier technology, and see a promising, synergetic future for both companies". WizCom Technologies continues to expand its traditional product line with offerings generated by market demands. Following the October 2001 release of SuperPen, a single product embodying the functionalities of Quicktionary II and QuickLink Pen, WizCom's second-generation products, WizCom has now launched the Dutch Reading Pen project. The Dutch Reading Pen II, based on WizCom's second-generation hand-held scanner, will be designed to provide "assistive technology" for approximately 2% of the Dutch school population, with dyslexia, who fall into the "learning disabled" category. Nextec Ltd. is a young and dynamic hi-tech company, specializes in the field of high precision non-contact scanning, digitizing and inspection for quality control and reverse engineering applications. The company's goal is to become a top tier supplier of non-contact 3D inspection technologies, products and integrated solutions for various OEM and end users. Nextec aims to provide customers with top accurate scanning and digitizing solutions. For additional information, please see www.nextec-wiz.com.