[TowerTalk] Info re VS/Motorola Merger from Yaesu VP

[Joe Giacobello <k2xx@swva.net>]

From Dennis, K7BV:

Friends,

By now, many of you may have heard that Vertex Standard Co., Ltd, 
(Vertex Standard USA’s parent company) announced that they have agreed 
to form a collaborative joint venture with Motorola, Inc. I personally 
believe the most important words in this sentence are “collaborative 
joint venture� – a business relationship that indicates a far 
different outcome intent than the demise of one of the venture partners.

Since Yaesu is the Amateur Radio Division of Vertex Standard, I am sure 
you are just as curious as me, a Yaesu employee with a job at stake, to 
know what this business transaction will mean to all of us in the hobby. 
Predictably, I see that the news about the pending new Motorola 
relationship with Vertex Standard, hence Yaesu, is giving life to all 
sorts of misinformation and “doomsday� Internet postings by the 
usual cast of characters who always seem to know so much more about 
things than the rest of us mere mortals. After studying public 
announcements and considering the internal information that is made 
available to me in my role as the leadership individual for North 
American sales at Yaesu, I would like to offer the following FACTS about 
this exciting development.

Motorola, Inc. (NYSE: MOT) will launch a tender offer to acquire a 
controlling interest in Vertex Standard Co., Ltd. (JASDAQ: 6821). Upon 
successful completion of the tender offer and subsequent restructuring 
process, Motorola will own 80% of Vertex Standard and Toko Giken, a 
privately held Japanese company, controlled by Jun Hasegawa, current 
president and CEO of Vertex Standard, will retain 20%, forming a joint 
venture. On 5 November 2007, the Board of Directors of Vertex Standard 
expressed their support of the tender offer. Yaesu, of course, as one of 
the Vertex Standard operations, will be included in this exciting 
development.

I want our Yaesu customers and concerned others to know the following 
about the proposed merger:


Vertex Standard (meaning Yaesu to us in the Amateur Radio hobby) will 
remain a separate, global organization with distinct resources governed 
by the Board of Directors comprised of four Motorola representatives and 
one Toko Giken representative. Toko Giken is a privately held Japanese 
company, controlled by the founder’s family. It currently holds 29.2% 
shares of Vertex Standard.
Mr. Jun Hasegawa (my boss), son of Sato Hasegawa JA1MP, the founder of 
Yaesu will continue to take part in the management of Vertex Standard in 
his capacity as the Representative Director, President and CEO of Vertex 
Standard after the Tender Offer. The day-to-day management of the joint 
venture will be the responsibility of Mr. Hasegawa and his senior 
leadership team, who are also expected to continue. Count me as one of 
those who will continue with Yaesu.
Our business will continue to be operated as is, and we will continue to 
actively develop new products and operate the business as a leading 
manufacturer of amateur radio, marine, land mobile, and airband radios.
The Vertex Standard brand of equipment (Standard brand in Japan) will 
continue to exist. The current Vertex Standard brand strategies are 
highly respected by Motorola and will be continued. Since Motorola 
appreciates our Yaesu brand strategy, there will be no change to it.
There will NOT be a Motorola brand of Amateur Radio equipment replacing 
or competing with Yaesu.
Yaesu customers can expect to see positive benefit from the fact that:
Vertex Standard has an experienced engineering team that, combined with 
Motorola’s extensive engineering talent, will develop new innovative 
products. Personally, I cannot wait to see what this joint engineering 
effort will bring to Amateur Radio!
Cost synergies will be realized through the use of Motorola’s buying 
power to reduce the joint venture’s costs for raw materials. Hams are 
known to enjoy seeking out the best buy for their hard earned money – 
expect to see Yaesu products remain highly competitive and providing 
excellent value for your investment.

Because Mr. Hasegawa will continue to manage the day-to-day operations 
of Vertex Standard, we do not expect to see changes in the existing 
Yaesu dealership, pricing and rebate philosophies as a result of the 
joint venture.

These are historic exciting times for Yaesu, our customers, and Amateur 
Radio. The future is bright and the potential for incredible 
technological advancements for Amateur Radio are immense. We are glad 
you will be there with us as the positive affects of the Vertex Standard 
/ Motorola joint venture unfolds.

73,
Dennis Motschenbacher K7BV
k7bv@vxstdusa.com


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