KEY PRESS RELEASE=SOURCE MEDIA ESTABLISHES
VIRTUALMODEM DIVISION FOR CABLE TV
INTERNET SOFTWARE
VirtualModem(TM) Division Organized To Further
Capitalize On Accelerating Digital Cable TV Opportunities
DALLAS, TX.,(BUSINESS WIRE) April 20, 1998 -
Source Media (NASDAQ:SRCM), through its Interactive
Channel, today became the first cable programmer to
announce compatibility with both Microsoft Corp.'s
(NASDAQ:MSFT) Windows CE(tm) and Sun Microsystem's
Inc. (NASDAQ:SUNW) PersonalJava(tm) digital cable
television operating systems for its Interactive Channel(tm),
Source Media, Inc. (NASDAQ: SRCM - news) today
announced that it has strengthened and broadened its
organizational structure with the creation of a third division,
VirtualModem. The VirtualModem division will leverage
Source Media's intellectual property and software combined
with intellectual property and development resources from
Cableshare, Inc., acquired in 1997.
VirtualModem's patented technology enables today's
OpenCable(TM) digital cable TV set-top boxes to deliver the
Internet to consumers' televisions at zero incremental
hardware cost with a simple software download. The
VirtualModem division will focus on licensing and software
sales within the cable TV industry. Separately, Source Media
has plans to open a Silicon Valley office to better meet the
needs of prospective customers of VirtualModem.
Having completed a successful eighteen month commercial
evaluation of Source Media's interactive capabilities in the
Century Communications' Colorado Springs, Colorado cable
system, the Company believes its Dallas-based Interactive
Channel is well-positioned to deliver its digital interactive
applications to the cable industry in conjunction with the
growing rollout of digital set-tops.
The IT Network, the Company's new media content and
advertising operating division, will continue to operate from
its Las Colinas, Texas facilities and studios focusing on
maintaining continuing growth in revenue and earnings. The
market-share leader in interactive voice services, IT
Network today provides a wide range of content, advertising
sales, system management and customer service to over 280
newspapers and 500 Yellow Pages directories nationwide.
Each of the Company's three divisions will report to Tim
Peters, Chairman and CEO of parent Source Media, Inc.
''Our decision to establish a new operating division,
VirtualModem, will provide an operating structure that we
expect to be better tailored for the specific markets in which
we operate. Our intent is to streamline the focus of each
division, and operate within each division with a clear and
concise sense of priorities. By creating the VirtualModem
division, we deliver three unique, scalable businesses:
VirtualModem, designed to match the enormous licensing
and software opportunities driven by opening the digital
cable TV marketplace to the Internet; the Interactive
Channel, the leading interactive TV programming service
designed to be 'packaged' into the new digital cable TV
programming tiers; and the IT Network, a rapidly growing
new media content and advertising business with strong
positive cash flow.''
Source Media is a leader in the development and introduction
of new interactive technologies and programming. Source
Media's IT Network, provides new media content and
advertising services via newspapers and Yellow Pages
directories to over 150 million households and businesses
nationwide. The Interactive Channel is an interactive cable
TV programming service designed for today's digital cable
TV programming tiers, and has carriage agreements with
Century Communications Corporation [Nasdaq:CTYA -
news], Marcus Cable Company L.P. and Cablevision Systems
Corporation [AMEX:CVC - news]. VirtualModem develops
and markets the intellectual property, software, and patents
behind the Company's internet cable TV technology.
Safe Harbor Statement under the Private Securities Litigation
Reform Act of 1995: Statements that are not historical facts,
including statements about confidence and strategies and
plans and expectations about new and existing products,
services, technologies and opportunities, industry growth,
demand, demand and acceptance of new and existing
products, and returns on investments in products and markets
are forward-looking statements that involve risks and
uncertainties that could significantly impact Source Media.
These include but are not limited to the ability to secure
distribution for the Cable SuperSites; failure to make
available advanced analog or digital set-top boxes
incorporating the Company's technology; general economic
and business conditions; industry trends; competition;
equipment costs and availability; loss of any significant
customers; changes in business strategy and development
plans; availability, terms and deployment of capital;
availability of qualified personnel; and changes in, or the
failure or inability to comply with, government regulation |
