At the beginning of June Costar Technologies, Inc. signed a definitive agreement to acquire Cohu HD, the camera, at that time the purchase price for Cohu HD, including potential earn-out payments, was expected to be $10 million in cash, subject to certain post-closing adjustments set forth in the definitive agreement. The acquisition, which is structured as an asset purchase, was subject to customary closing conditions. Costar is financing the transaction with proceeds from a new credit facility with Bank of Texas. The present Cohu HD management team and other Cohu HD employees are expected to join Costar following the closing of the acquisition.

Costar President and Chief Executive Officer James Pritchett stated, "This is a great strategic fit for Costar as we combine with one of the most well respected
brands in the industry."

Cohu HD is a leading provider of video cameras and related products, specialising in IP video solutions for traffic monitoring, security, surveillance and military applications; and accessories such as cables, camera mounts, lenses and data storage devices. Cohu HD is the market leader in offering high-definition video systems designed for the performance requirements associated with critical infrastructure environments, and sells to a customer base that includes corporate end-users, state and federal government agencies, original equipment manufacturers, distributors, system integrators and value-added resellers.

Pritchett went on to say, "The Cohu HD acquisition is consistent with our strategy of providing high quality solutions to our customers. Our customers will have access to a broader product line while continuing to receive the same high level of sales, service and support that they have come to expect from Costar and Cohu HD.”

Costar Technologies, Inc. develops, designs and distributes a range of security solution products including surveillance cameras, lenses, digital video recorders and high-speed domes. Costar also develops, designs and distributes industrial vision products to observe repetitive production and assembly lines, thereby increasing efficiency by detecting faults in the production process. Headquartered in Coppell, Texas, Costar’s shares currently trade on the OTC Markets Group under the ticker symbol "CSTI”.

Alston & Bird LLP acted as Costar’s legal counsel in connection with the transaction.