iGo acquisition complete, buyer's cost-cutting starts

Mobility Electronics, Inc. last week completed

its acquisition of Reno's iGo Corp.

Based in Scottsdale, Ariz., Mobility

Electronics said it's undertaking steps to

reduce iGo's operating expenses by more

than 50 percent.

Those steps include:

* Restructuring iGo's cellular business

through the signing of an exclusive supplier

agreement with Andrew Corp. that will

reduce expenses and eliminate inventory

exposure

* Outsourcing fulfillment responsibilities

across iGo and Mobility to PFSweb Inc.

* Moving iGo's operations to a smaller, less

expensive facility in Reno's South Meadows

business park.

* Consolidating iGo and Mobility's sales,

marketing and engineering functions.

* Eliminating duplicated overhead and eliminating

the expenses iGo encountered as a

stand-alone public company.

"We believe the cumulative effect of these

changes will reduce iGo's operating expenses

by more than 50 percent from their historical

levels," said Charlie Mollo, chief executive

officer of Mobility Electronics.

Mobility Electronics, designs and markets

equipment for portable computers. iGo markets

accessories for personal digital assistants

and cellular phones.