Rare Medium Group Inc. and New Valley Corporation to Invest $10 Million in Atomic Pop
NEW YORK--(BUSINESS WIRE)--Oct. 1, 1999--
Agreement is a Key Part of Rare Medium Group's Broad
Digital Music Strategy
The Rare Medium Group (Nasdaq:RRRR) announced today it will make an equity investment in the Internet music company Atomic Pop, in conjunction with New Valley Corporation (OTC:NVAL). The investment round will total approximately $10 million. In addition, Rare Medium, Inc. -- the services arm of The Rare Medium Group -- will provide Internet development services to Atomic Pop.
Atomic Pop, the 21st century music company, is based in Santa Monica, California, and operates the Internet site www.atomicpop.com. Founded by Al Teller, the former head of MCA Music Entertainment Group and president of CBS Records, Atomic Pop is a new model music company dedicated to leveraging the digital medium to change the way music is acquired, promoted, sold and distributed. The company has signed its first set of true online record deals with major artists such as Public Enemy, ICE T and L7.
The Atomic Pop investment is part of The Rare Medium Group's broad digital music strategy that includes investments in www.ChangeMusic.com.
Rare Medium is a leading Internet solutions firm and is engaged in the business of making venture and incubator investments in Internet companies. Apollo Investment Fund IV, L.P. and related entities recently completed an $87 million investment in Rare Medium (www.raremedium.com).
New Valley is principally engaged in investment banking and brokerage through Ladenburg Thalmann & Co. Inc., in real estate development in Russia through BrookeMil Ltd., and in ownership and management of commercial real estate in the U.S. through its New Valley Realty division.
About Rare Medium Inc.
Rare Medium Inc., www.raremedium.com, a wholly-owned subsidiary of Rare Medium Group, Inc., is an Internet solutions firm that helps clients develop E-commerce Internet strategies, improve business processes, develop marketing communications, branding strategies and interactive content using Internet-based technologies and solutions. Rare Medium develops Internet- and Web-based solutions primarily for large and medium-sized corporations, including Microsoft, "The New York Times," Merrill Lynch, Intel, Epson, Hotel Reservation Network and Fox, among other leading companies.
About Rare Medium Group, Inc.
The mission of Rare Medium Group is to incubate paradigm-shifting ideas and build the next wave of blockbuster companies by leveraging its award-winning Internet development arm, Rare Medium Inc. Companies currently in development include: www.liveuniverse.com, a "Micro-Portal Enabler" with over 100,000 Web sites in its network; www.iface.com, a "VoIP" company, "Voice Enabling" the Internet; www.changemusic.com, a company at the vanguard of the digital music revolution -- using the Internet to find, promote and distribute the best new music first; and, www.regards.com, an online greeting card and viral marketing company. Rare Medium Group Inc. employs approximately 400 Internet professionals and is headquartered in New York with additional offices throughout the United States and Canada.
Except for historical matters contained herein, the matters discussed in this press release are forward-looking and are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Investors are cautioned that these forward-looking statements reflect numerous assumptions and involve risks and uncertainties that may affect Rare Medium Group Inc. (Nasdaq:RRRR), and its subsidiaries' business and prospects and cause actual results to differ materially from these forward-looking statements. Among the factors that could cause actual results to differ are Rare Medium's limited operating history; competition; low barriers to entry; reliance on strategic relationships; rapid technological changes; inability to complete transactions on favorable terms and those risks discussed in the company's filings with the SEC.
CONTACT:
Rare Medium Group Contact:
Seth Tapper, 646/227-5480
KEYWORD: TEXAS
BW0230 OCT 01,1999
13:06 PACIFIC
16:06 EASTERN |
