New Offer From Another Unknown US-Based Private Equity Firm to Acquire Plasmon

As part of our commitment to keep you informed on our financial and corporate restructuring announced last Monday, we will update this communiqué daily with new developments.

This week, Plasmon Inc. and its UK Administrators continued to engage with interested strategic and financial sponsors to acquire the business. The company is now reviewing a new offer from a US-based private equity firm. This activity was publicly announced and supported today in the UK by the UK administrators:
                                                                                             
“These actions enable the ongoing sale and support of Plasmon products worldwide. The Administrators are presently in discussions with a number of interested parties and are hopeful that a sale of the business can be achieved in a relatively short time frame.”  — Kroll RNS announcement October 8, 2008     

As this process runs its course, Plasmon will continue normal operations selling and supporting customers and partners in all territories.  In the meantime and over a very short period, Management intends to work with the UK administrator to continue our restructuring plans and successfully complete a buy-out transaction. Plasmon Inc. expects to be positioned to continue aggressively pursuing its strategic vision as a leader in the enterprise data archiving market.  

With increased IT operational and compliance demand for long term data storage solutions, Plasmon Inc. continues to be poised to address the growing enterprise archiving market opportunity. Our newly announced ‘3-2-1 Archive Architecture’ for accessible and secure long-term data storage provides exactly what the enterprise market is looking for:  at least 3 single instance data copies, on 2 types of media, 1 of which is removable, long-lived and powered down. Plasmon Inc. continues to develop its leadership position in this rapidly growing market and we expect, as a result, to return to growth and positive cash flow this fiscal year.

As always feel free to contact us at partner_info@plasmon.com and we will continue to keep this message updated on our Website with the current status and progress on key milestones during this re-organization. We wish to thank our customers, partners and key suppliers for their continued support through this transition period.