Sagem Communication Announces the Acquisition of Interstar Technologies

Sagem Communication announced the acquisition of Interstar Technologies Inc. and the creation of a new Sagem Interstar subsidiary based in Montreal, Quebec.

Interstar designs, develops and distributes IP based fax servers for converged communications networks.

Interstar is a pioneer in Fax over IP (FoIP) technology. The company started a revolution in the fax server space in 1996 with the launch of LightningFax, an analog based solution and then reinvented the fax server in 2002, with the introduction of the innovative XMediusFax product line based on IP technology.

This IP based fax server solution utilizes the ITU real-time T.38 FoIP protocol, thus eliminating the need for specialized communications hardware. The solution is aimed at both enterprise customers and service providers alike. Thousands of Interstar products are installed in over 30 countries in companies of all sizes representing a broad range of industries including finance, healthcare, manufacturing, government agencies as well as telecommunications and IT service providers.

"The acquisition of Interstar technologies supports our market penetration and growth strategies by allowing us to bring together the technologies required for the delivery of an end-to- end solution that merges the ease of use of our traditional document management and fax solutions with an all IP communications architecture", said Patrick Sevian, Deputy Chief Executive Officer of Sagem Communication.

"This acquisition will allow us to significantly expand our activities in North America and to become the number one Fax over IP technology provider in the world."

For the fourth consecutive year, Interstar leads the industry with a 75% market share of real-time FoIP servers according to the latest Davidson Consulting report. This market segment is expected to grow at a rate of 10% per year through 2009.

Interstar's expertise in the design and development of FoIP servers coupled with the Sagem Communication's expertise in the development of multifunction terminals integrating fax will allow the combined entity to offer innovative and efficient solutions perfectly integrated with the IP world.