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Traxdata Enters North American Market, Announces Distribution Plans
SPOKANE, Wash., Jan. 27 /PRNewswire/ -- The largest distributor of CD-R media in Europe has selected a Spokane firm to be its exclusive distributor for North America. Traxdata of the United Kingdom and Virtual Systems Distributing LLC (VSD) of Spokane signed an agreement in Spokane today to have VSD distribute 200 million CD-R's throughout North America over the next three years.

The ten-year distribution agreement covers CD-R (CD-Recordable), CD-RW (CD-Rewritable), and DVD (Digital Versatile Disc). CD industry estimates are that 60% of personal computers being shipped worldwide today have a CD writer installed that allows the user to record and store data, video and music on CD-R discs. Traditional CD drives can read CD-ROM's and CD-R's but not record onto them. The American market is the fastest growing worldwide and will represent 45% of the world sales in the year 2000.

Virtual Systems Distributing LLC was started in 1999 as a natural expansion of Video Source Distributing, Inc., founded in 1992. VSD is headquartered in Spokane and has well-established retail and wholesale distribution channels throughout the Pacific Northwest, primarily in video products. VSD has worked closely with many of North America's largest distributors of video products and is a registered government vendor, allowing for overseas distribution, primarily to military bases.

"Traxdata's selection of VSD as exclusive North American distributor of their CD-R media products is phenomenal and exciting news for us," said Raymond A. Pipella, majority owner of VSD. "Traxdata's clout in the international CD-R market will allow VSD to grow, and ultimately Spokane, Eastern Washington, and the Pacific Northwest will benefit as we show the global marketplace that Spokane is a good place to do business."

Traxdata, headquartered in Loudwater, in Southeast England, is Europe's number one CD-R Company and has established the brand as the largest volume seller in Europe. Traxdata's goal is to sell one million CD-R's a day in 2000. Last year the company had a business volume of $200 million; this year Traxdata expects volume to increase to $500 million.

"Traxdata is on pace to become the global leader in the distribution of CD-R media," said Kevin Edwards, CEO of Traxdata, "and our successful strategy of working with exclusive distributors enables Traxdata to develop strong working relationships and maintain control of overhead."

Traxdata currently has selected 25 exclusive distributors around the world to serve the growing CD-R media market. In September 1999, Traxdata announced a strategic alliance with Ritek, the number one manufacturer of optical disc technologies in the world.

SOURCE: Traxdata/VSD

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