SyQuest Technology announced that it has signed a letter of intent to acquire controlling interest in Nomai, S.A., a major French manufacturer of removable hard drives and cartridges.

Under terms of the letter of intent, SyQuest would acquire from Marc and Herve Frouin 674,735 shares of Nomai, representing two-thirds of Nomai's outstanding capital stock, in exchange for 3,441,217 shares of SyQuest common stock. SyQuest would then seek approval of French and U.S. regulatory authorities to make a tender offer for the remaining Nomai shares held by the French public.

"We are excited to join forces with Nomai and believe that the two companies will form a new competitive force in the removable cartridge arena," said Ed Marinaro, SyQuest chairman, "This acquisition not only adds depth to our strong product portfolio but increases our share of a growing worldwide market. It is another important step in the restoration of SyQuest as a global competitor."

It is expected that the acquisition of the Frouins' shares will close in early 1997 and that the tender offer to the remaining Nomai shareholders will be completed shortly afterward. The acquisition is subject to the negotiation and execution of definitive agreements, as well as to customary closing conditions, including approval by SyQuest's shareholders.

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