ZOMX Zomax

Joint Venture with MPO International Consolidates Companies' Ireland Manufacturing Operations MINNEAPOLIS, Aug. 1, 2006 /PRNewswire-FirstCall/ -- Zomax Incorporated (NASDAQ:ZOMX) today announced that it has closed on its previously announced joint venture with MPO International (MPO), a privately-held leader in the media manufacturing and supply chain services industry. Through the joint venture, the two companies have consolidated their separate Ireland media replication businesses, manufacturing operations and management teams into one entity. The new joint venture officially began operations on August 1 as Zomax/MPO Ireland Limited. "We are very pleased that we have successfully closed on our joint venture with MPO and believe we have created a profitable entity that can service the existing needs of both our and MPO's customers," said Anthony Angelini, president and CEO of Zomax. "In addition, we have entered into a strategic sales and marketing agreement with MPO that will allow us to jointly pursue the IT market segment in Europe and leverage MPO's European manufacturing and distribution infrastructure as a means to more broadly service our customers. We look forward to the future success of Zomax/MPO Ireland Limited." "We believe that partnering with Zomax and combining our resources to form this joint venture will result in a media manufacturing operation in Ireland that is strong and profitable," said Loic de Poix, president and CEO of MPO International. "We are excited to continue the development of the relationship with Zomax and believe we can successfully create a profitable entity in Ireland and develop future opportunities through our strategic sales and marketing agreement." Patrick (Paddy) Burke, currently managing director of Zomax operations in Ireland, has been named chief executive officer of Zomax/MPO Ireland Limited. Mr. Burke has significant industry experience and has been responsible for leading the Zomax Ireland operations back to profitability. The newly formed joint venture was created to profitably support the existing media manufacturing needs of both Zomax Limited's and MPO Ireland's clients. Under the new sales and marketing agreement Zomax and MPO plan to pursue new growth opportunities in Europe. One of the strategic opportunities that the companies are pursuing is leveraging Zomax's reputation as a best-in-class supply chain company and MPO's European production and fulfillment capabilities to create new customer opportunities in the European IT market segment. The companies will also look to develop opportunities to utilize Zomax' contact center operations and subscription management capabilities in Ireland for new revenue opportunities with MPO's strong base of entertainment customers. Under the terms of the definitive joint venture agreement between MPO and Zomax, Zomax owns 51% of Zomax/MPO Ireland Limited and MPO owns the remaining 49%. Each company has contributed an undisclosed level of manufacturing assets, inventory and cash to the joint venture. Zomax is providing the general, financial and human resource management leadership for the joint venture and MPO will assist the joint venture in sales, business development and technical support activities. About Zomax Zomax helps companies more efficiently bring their products and content to market worldwide. Our comprehensive program management approach helps companies develop, manage and improve their rapidly changing product and program supply chains. Zomax' solutions leverage a modular suite of supply chain services that include project management, data management, customer contact and e-commerce services, sourcing management, CD/DVD production, assembly and kitting services, JIT physical and electronic fulfillment and returns management. Founded in 1993, Zomax currently operates 8 facilities across the United States, Canada, Mexico and Ireland. For more information on Zomax, visit http://www.zomax.com/ or call (866) 553-9393. About MPO International MPO International is an independent business focused primarily on pre-recorded media and stocking solutions for the home entertainment industry. MPO is one of the Media Industry's pioneers. With 1,500 employees in Europe and Asia, 6 production sites and Fiege/MPO, a recent joint venture with a European leader in logistics activities to provide distribution services for their customers, the MPO group is the independent leader in pre-recorded media and stocking solutions. It is headquartered in Averton, France. http://www.mpointernational.com/ Forward-Looking Statements Certain statements contained in this press release are "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. Such forward-looking statements relate to our expectations of future performance and events including the financial impact of the Ireland joint venture and our ability to execute on our plans for the Ireland joint venture related to integration and market opportunities. These forward-looking statements involve known and unknown risks, uncertainties and other factors that may cause actual results, performance or achievements to be materially different from the results, performance or achievements expressed or implied by the forward-looking statements. We caution that any forward looking statements made by us in this release or in other announcements made by us are qualified by important factors that could cause actual results to differ materially from those in the forward-looking statements. These factors include, without limitation, our ability to execute on the joint venture; the changes and volatility in the personal computer hardware and software industry in Europe, particularly with respect to the demand for CD and DVD media, from which a significant portion of our Ireland revenues are derived; macroeconomic factors that influence the demand for personal computer hardware and software and the resulting demand for the products and services offered through our Ireland operations; consolidation among our customers or competitors, which could cause disruption in our customer relationships or displacement of us as a services provider to one or more customers; our ability to make the proper strategic choices with respect to pursuing profitable growth in our European business; increased competition within our industry and increased pricing pressure from our customers; our dependence on relatively few customers for a majority of our revenues; the future success of the sales and marketing agreement to develop new opportunities; fluctuations in our operating results from quarter-to-quarter, which are influenced by many factors outside of our control, including variations in the demand for particular services we offer or the content included in the products we produce for our customers; the volatility of polycarbonate prices; and other risks and uncertainties, including those identified and discussed in detail under the caption "Risks and Uncertainties" in Item 1A of our 2005 Form 10-K. We undertake no obligation to update or revise any forward looking statements we make in this release due to new information or future events. Investors are advised to consult any further disclosures we make on this subject in our filings with the Securities and Exchange Commission, especially on Forms 10-K, 10-Q and 8- K, in which we discuss in more detail various important factors that could cause actual results to differ from expected or historical results. DATASOURCE: Zomax Incorporated CONTACT: Anthony Angelini, President and CEO, or Dick Barnes, EVP and CFO, both of Zomax Incorporated, +1-763-553-9300; or Louis de Bellegarde, CFO, +33-1-41-10-51-65, or Alban Pingeot, VP Development, +33-1-41-10-58, both of MPO International; or Investor/Media, Douglas Sherk or Jennifer Beugelmans, +1-415-896-6820, or Steve DiMattia, +1-646-277-8706, all of EVC Group, Inc. Web site: http://www.zomax.com/ http://www.mpointernational.com/

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