Friday March 24, 9:57 am Eastern Time
Company Press Release
Destiny Media Technologies to Spin Off Streaming Audio Technology to Wholly Owned Subsidiary
Clipstream Technologies, Inc. to market Bannerstream and Clipstream products
VANCOUVER, B.C.--(BUSINESS WIRE)--March 24, 2000--Destiny Media Technologies, Ltd (Pink Sheets:DSNY) announced today that subject to shareholder approval, the Clipstream(TM) and Bannerstream(TM) products will be sold to Clipstream Technologies, Inc., a wholly owned subsidiary. The technology transfer includes the rights to the products, source code, trademarks and patents.
Clipstream(TM) is a fast, easy to implement and ultra small java applet which enables over 90% of web surfers to hear streaming audio, directly embedded on web pages, without having to rely on external applications or bulky plug-ins. The current popular streaming audio solutions from Microsoft (Nasdaq:MSFT - news) and Real Networks (Nasdaq:RNWK - news) require the user to install and configure a plug-in.
Bannerstream(TM) adds streaming audio capabilities to existing web banner ads. Rich media ads can provide up to a 700% increase in `click throughs' to the advertiser's site. According to Media Metrix (Business is Booming, March 20, 2000) the number of companies advertising on the internet grew by approximately 17% in the final quarter of 1999 with the number of ad impressions reaching 38 billion in that time period. clipstream.com
Clipstream Technologies, Inc. will be initially financed with private funding. The proceeds of this funding will be used to build a separate management and marketing team to exploit the large market potential of rich media banner advertising and web page streaming audio technology. The company will consider several future financing opportunities including an Initial Public Offering.
As part of the terms of the agreement, Destiny will retain the right to use the proprietary compression algorithm in other products. The agreement provides for a payment to Destiny and an on going royalty stream.
The spin-off allows Destiny to concentrate on its core competencies including the continued development and marketing of its streaming media products and its proprietary digital music distribution format ``MPE'. MPE is an all-in-one multimedia file format with built-in e-commerce, digital rights management; secure distribution and visual display functions.
Destiny CEO Steve Vestergaard explains, ``The MPE media distribution system has been well received and is taking a lot of management focus. The opportunity for Clipstream is tremendous, but we believe it requires a separate team to exploit the market potential. From both an operations and funding perspective, it makes sense to move this product line into a new corporation.'
Mark Lotz, Destiny CFO adds, ``Clipstream Technologies will be funded separately with the goal of attaining a separate public market listing. This strategy should increase shareholder value in Destiny.'
Destiny Media Technologies Ltd. (http://www.destiny-software.com) has been developing leading edge software since 1991. Destiny develops accessible and cost-effective enabling technologies for online media streaming such as the Destiny Media Player(TM), the world's smallest and most versatile digital music player and Internet radio receiver; the RadioDestiny Broadcaster(TM) software for personal and commercial Internet radio broadcasting; and the Radio Destiny Broadcast Network(TM), a network of eclectic personal radio webcasters. Destiny software applications are designed to be affordable and simple enough for anyone to use.
``Safe Harbor' statement under the Private Securities Litigation Reform Act of 1995: This release contains forward looking statements that are subject to risks and uncertainties, including, but not limited to, the impact of competitive products and pricing, product demand and market acceptance, new product development, reliance on key strategic alliances, availability of raw materials, the regulatory environment, fluctuations in operating results and other risks detailed from time to time in the Company's filings with the Securities and Exchange Commission.
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Contact:
Destiny Software Productions Inc.
Paul Andreola, 604/609-7736 Ext. 25
Toll Free: 1-800-8-DESTINY
Fax: 604/609-0611
email: investor@dice.net
Website: destiny-software.com |
