Why are SIRSI and DRA combining?

According to the Library Systems Newsletter (March 2001), SIRSI is ranked the No. 4 vendor in the library automation industry in terms of installed systems and the No. 1 vendor in the industry based on the number of new-name sales. By acquiring DRA, a long-time, well-respected library systems vendor, SIRSI effectively doubles its customer base.

SIRSI believes that its iBistro Electronic Library and Hyperion Digital Media Archive System can be integrated effectively into the DRA family of software products and offer significant benefits to DRA users.

SIRSI gains from DRA's 25-plus years in the library automation business. From this experience, DRA brings extensive expertise in library science, complex system implementations, and integration of new technology components into new and legacy products. Additionally, DRA has a strong presence in standards organizations that address both library technology and general information technologies.

SIRSI customers will benefit from the outstanding Web and Internet/intranet expertise and services that DRA provides to libraries, as well as other opportunities to use DRA technologies found in DRA systems, including DRA Classic, INLEX/3000, MultiLIS, and Web2. SIRSI is committed to the continued support of all DRA systems as well as continued aggressive development of the DRA Taos system.

The SIRSI-DRA team is committed to a strategy of multiple base platforms, enabling customers to leverage their investments in ever-changing technologies. SIRSI-DRA will build on the DRA experience in making new technologies available on mainstream platforms as well as, to the extent possible, existing legacy platforms.

Why is the acquisition beneficial for the employees and customers of each company?

By bringing together these two industry leaders, the combined company will be uniquely positioned to serve its combined customer base. SIRSI and DRA, as long-time participants in the library automation industry, have extensive installed customer bases, enjoy strong customer loyalty, and are known for delivering outstanding library technology.

The combined SIRSI-DRA organization will create a formidable force in the library automation industry. For the future, the synergy created by the combined SIRSI-DRA organization will push SIRSI-DRA technology and expertise into the marketplace farther than either company would be able to do on its own.

An additional benefit that comes from the acquisition is the improvement in economies of scale that result from two separate entities joining forces to serve a common marketplace.

What will be the market standing of the combined SIRSI-DRA organization?

When combined, the new SIRSI-DRA company will be the No. 2 vendor in the library automation industry, based on number of installed systems, according to data compiled and published in the March 2001 Library Systems Newsletter. The combined company will have approximately 2,400 installed systems around the world. The combined company will also have the following additional distinctions in the industry, according to data published by the Library Systems Newsletter:

• No. 1 in new-name sales in 2000 (150+)
• No. 2 in number of installed systems worldwide (2,400+ )
• No. 1 in number of systems installed supporting 200+ concurrent users (450+)
• No. 2 in number of staff members dedicated to customer support (200+)
• No. 1 in number of staff members dedicated to software development and maintenance (190+)

Will DRA's operations – sales and marketing, product development, service and support, accounting, etc. –continue after the acquisition?

Yes. SIRSI is committed to servicing and supporting DRA's customer base over the long term, recognizing that these customers have made significant investments in DRA products. With this in mind, DRA's operations will continue with minimal changes. Employees will continue their job functions. Administrative activities will continue at DRA. Management will develop a plan for long-term operation of the combined companies after an extensive study of DRA operations to ensure their familiarity with all aspects of DRA, its employees, and its customers.

Will DRA departments and/or personnel be cut as a result of the acquisition?

No. To best serve all customers of the combined companies, no cuts in organizations or employees are planned, although over time we may find synergistic opportunities.

Will DRA offices in the United States and abroad be closed as a result of the acquisition?

No. DRA's corporate headquarters in St. Louis, as well as offices in California, Canada, Singapore, and France will continue operations as they do today.

What role will DRA's current management play after the acquisition?

Once the acquisition is complete and SIRSI owns all DRA assets, DRA will become a privately held, wholly owned subsidiary of SIRSI. As a result, DRA's board of directors will be dissolved. However, Michael Mellinger, currently chairman of the board and CEO of DRA, will be a part of the management of the combined organization. Mellinger will act as chairman of the new DRA, and will join the SIRSI board of directors.

Will DRA's products continue to be supported?

Yes. DRA systems in place will continue to be supported by DRA service and support organizations.

Will the DRA Taos system continue to be developed?

Yes. SIRSI and DRA are committed to the aggressive Taos development schedules.

What happens to existing DRA purchase, upgrade, and maintenance contracts?

The SIRSI-DRA transaction has no effect on existing DRA customer contracts. They continue in full force.

Will SIRSI change the current DRA upgrade policies?

No changes to DRA upgrade policies are planned at this time.

Will SIRSI provide DRA customers a plan for upgrading to Unicorn, rather than Taos?

Yes. SIRSI will develop a plan for DRA customers who wish to upgrade to SIRSI's Unicorn system.