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Lexmark launches NZ channel changes

Thu, 16 Sep 2004

Lexmark launches NZ channel changes

- New enterprise distribution agreement and aggressive new pricing for consumer/SMB products -

Auckland, New Zealand, September 16, 2004 - Lexmark International (NYSE: LXK) today announced a new New Zealand distribution agreement and also dramatically lowering prices on its consumer and SMB products.

Ingram Micro (NYSE: IM) is set to become the sole distributor for Lexmark products in New Zealand. The decision to consolidate distributors will ensure a higher stock availability, increased sales and product management resource and an easier to manage pricing model. The two companies struck a similar deal for consumer and SMB products earlier this year. The new agreement is effective immediately.

Peter O'Dwyer, New Zealand Business Manager, Lexmark said the agreement would provide the printing company with a stronger link with enterprise customers and the channel.

"Enterprise customers in New Zealand, as in other parts of the world, are seeking more sophisticated output solutions that require a high degree of understanding from the vendor and the channel. This agreement with Ingram Micro will ensure a high level of knowledge on products and solutions right through to resellers and their customers," O'Dwyer said.

"Lexmark believes strong relationships with the channel will be instrumental to our continued growth in New Zealand and these initiatives are testament to that."

Ingram Micro New Zealand Ltd is part of the world's largest wholesale provider of technology products and services, with its Head Office and Warehousing in Auckland and two sales offices located in Wellington and Christchurch.

Ingram Micro has recently placed a higher focus on its backend logistics system, enrolling vendor expertise and support and making it easier for vendors and resellers alike to gain access to products and information.

John Dunbar, Managing Director of Ingram Micro NZ welcomed the deal.

"Ingram Micro believes the sole distributor agreement will significantly extend Lexmark's reach into the New Zealand market and builds on an already successful consumer and SMB model," Dunbar said.

"We will provide our resellers with a dedicated Lexmark product manager and other services that will ensure strong and practical on the ground support for the channel."

Lexmark also announced it would slash its consumer and SMB product prices by up to 30 per cent while still maintaining reseller margins.

The single function inkjet Z818 and All In One (AIO) X1185 have both had their Recommended Retail Prices (RRP) dropped by 30 per cent. The Z818 will now be sold at $199 (was $299), while the X1185 will be sold for $169 (was $249).

RRPs for other models have also been reduced such as the Z615 (now $109, was $129), X2250 (now $199, was $279), X5250 (now $349, was $379) and X6170 (now $489, was $599).

ENDS

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