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INDUSTRY NOTES

Racet Signs Pact for Distribution in Far East

December 20, 1986|HENRY RIVERO

Racet Computes Ltd. of Orange said it has signed an agreement under which Kobe Steel Corp. of Tokyo will develop and distribute its computer products in the Far East.

The privately held maker of computer communications equipment said that the agreement calls for Kobe to distribute the devices throughout the Far East through its existing marketing arms.

Ron Johnston, Racet's president, said the agreement also calls for joint development of Racet systems for use in industrial controls and robotics at several Japanese companies. Among those companies will be Kobe itself, which "will use our device for their factory automation configurations."

This agreement will provide the company with further inroads into the Japanese market, which has been cultivated by Racet over the past five years to include "eight of the 10 major corporations" there, including Toshiba and Panasonic.

According to Johnston, the agreement will boost the company's projected sales in 1987 by at least $1 million from the previously anticipated $9 million. Revenues this year will come to about $3 million, he said.

The agreement also called for Kobe Steel to pump $1 million cash into Racet in return for 10% of the company, Johnston said.

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