Trimble Navigation Limited
935 Stewart Drive
Post Office Box 3642
Sunnyvale, CA 94085
Trimble Completes $26.75 Million Private Equity Placement
SUNNYVALE, Calif., Dec. 21, 2001 - Trimble (Nasdaq: TRMB) today announced that it has completed a private placement of 1,783,337 shares of its common stock at a price of $15.00 per share to certain qualified investors. Additionally, Trimble has granted these investors five-year warrants to purchase an additional 356,670 shares of common stock, subject to certain adjustments, at an exercise price of $19.475 per share. Trimble plans to use the net proceeds from this transaction to pay down a portion of its outstanding debt. Salomon Smith Barney served as financial advisor to Trimble.
"Over the past year, we have made significant progress towards reducing our overall costs to remain profitable in an uncertain economic environment," said Mary Ellen Genovese, vice president and CFO of Trimble. "By completing this transaction, we are complementing our ongoing cost cutting initiatives and increasing our financial flexibility. This will allow us to more aggressively pursue opportunities that we believe will drive our growth over the next several years."
From a financial perspective, Trimble expects this transaction will save approximately $2.0 million in interest expense during fiscal 2002. In addition to this transaction, the company said it also retired approximately $29 million of bank debt during its fourth fiscal quarter through normal operating initiatives.
The securities sold in this private placement have not been registered under the Securities Act of 1933, as amended, and may not be offered or sold in the absence of an effective registration statement or exemption from registration requirements. The Company expects to file a registration statement with the Securities and Exchange Commission for purposes of registering the resale of the shares of common stock issued to the investors in the private placement.
Trimble is a leading innovator of Global Positioning System (GPS) technology. In addition to providing advanced GPS components, Trimble augments GPS with other positioning technologies as well as wireless communications and software to create complete customer solutions. Trimble's worldwide presence and unique capabilities position the Company for growth in emerging applications including surveying, automobile navigation, machine guidance, asset tracking, wireless platforms, and telecommunications infrastructure. Founded in 1978 and headquartered in Sunnyvale, Calif., Trimble has more than 2,000 employees in more than 20 countries worldwide.
Investor Relations: Investor Relations of Trimble: 408-481-6914
Media Contact: LeaAnn McNabb of Trimble: 408-481-7808
Media Contact: David Pasquale of The Ruth Group: 646-536-7006