*think Streaming Media----> Microsoft Invests $30 Million in Intervu to Accelerate Broadband Delivery
Services; Companies Form Strategic Alliance to Bring High Quality Broadband to
Consumers
Business Editors/High Tech Writers
SAN DIEGO--(BUSINESS WIRE)--Dec. 20, 1999--INTERVU Inc. (Nasdaq:
ITVU), the leading service provider for Internet audio and video
delivery solutions, today announced a strategic partnership with
Microsoft to expand its broadband streaming media network based on the
Windows Media platform. The companies also announced that Microsoft
will invest $30 million in INTERVU.
"INTERVU is a pioneer in distributing streaming media content,
and we share a vision of bringing broadband into the mainstream for
millions of consumers," said Will Poole, general manager, Streaming
Media Division at Microsoft. "This alliance will significantly advance
the quality, broad availability, and efficient delivery of broadband
Windows Media content."
INTERVU and Microsoft are aligning to rapidly develop an
infrastructure that is cost-effective for the development of Internet
broadband audio and video delivery. Content providers will receive
forward-based pricing combined with a quick deployment of edge media
delivery centers located at high-speed access points. In addition, the
cost-effective Windows Media solution will serve as a platform for
building value-added applications such as targeted audio/video
advertising insertion, pay-per-view, and digital rights management,
creating new business opportunities for content providers.
"Our strategic alliance with Microsoft is a strong endorsement of
INTERVU's strategy to build the most advanced broadband network
dedicated to multimedia content," said Harry Gruber, chairman and
chief executive officer of INTERVU. "We will use this investment to
expand our broadband network capabilities and develop value-added
applications to provide our customers with an end-to-end solution for
streaming media management and delivery at a price designed to jump
start the broadband streaming media industry."
INTERVU provides content providers and corporations with turnkey
audio and video delivery services over a proprietary network built on
the Internet. INTERVU's patented network consists of distributed media
delivery centers (MDCs) that are co-located across multiple Internet
backbones for optimal Internet distribution and reach. With
Microsoft's investment, INTERVU will co-locate and interconnect its
MDCs on cable, wireless and digital subscriber line (DSL) networks and
in other "edge" locations in order to reduce, and eventually
eliminate, egress distribution costs for its content provider
customers. This regional expansion of INTERVU's network will also
offer broadband service providers and their subscribers with the
highest quality audio/video experience possible by bypassing Internet
congestion through intelligent network delivery.
Microsoft will purchase shares of a new series of INTERVU senior
convertible preferred stock for $30 million. The preferred stock may
be converted into common stock at a conversion price of $90.00 per
share, which represents a 27% premium over the previous 20-day average
closing price of INTERVU's common stock. The terms of the security
specify an annual dividend rate of 6.5% payable quarterly in stock or
cash. Microsoft will receive a five-year warrant to purchase 60,000
shares of INTERVU's common stock with an exercise price of $90.00 per
share.
About INTERVU Inc.
INTERVU provides Web site owners and content publishers with
services for the delivery or "streaming" of live and on-demand video
and audio content over the Internet. INTERVU's services automate the
publishing, distribution and programming of video and audio content.
INTERVU uses a scalable, patented distribution network comprised of
servers strategically located in major Internet hosting centers.
INTERVU's customers use its video and audio distribution services to
transmit entertainment, sports, news, business communications,
advertising and distance learning content. INTERVU's current customers
include CNET (Nasdaq: CNET), CNN (NYSE: TWX), Excite@Home (Nasdaq:
ATHM), House of Blues, Microsoft (Nasdaq: MSFT), MSNBC, NBC (NYSE:
GE), Onradio.com, Quokka Sports (Nasdaq: QKKA), Saatchi & Saatchi
(NYSE: SSA) and Turner Broadcasting. Additional information can be
found at www.intervu.net.
Except for the historical information contained herein, this news
release contains forward-looking statements that are subject to risks
and uncertainties that might cause actual results to differ from those
foreseen, including the market acceptance for INTERVU's specialized
services, the growth of the market for streaming media services,
INTERVU's history of operating losses and expected future losses,
technological change and intense competition, as well as the other
risks detailed from time to time in INTERVU's SEC reports, including
the report on Form 10-K filed on March 30, 1999.
--30--jh/ny*
CONTACT: INTERVU Inc.
Anjeanette Rettig
858/623-8400 x134
arettig@intervu.net
KEYWORD: CALIFORNIA
INDUSTRY KEYWORD: COMPUTERS/ELECTRONICS INTERNET MARKETING
AGREEMENTS
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