GENROCO (GRCI) Announces Timetable to Spin Off VideoPropulsion
Digital Video Business to Drive Next Generation TV
SLINGER, Wis., June 2 /PRNewswire/ --
GENROCO, Inc. (GENROCO) (OTC Bulletin Board: GRCI), a world leader in Storage
Area Network (SAN) technology, announced the schedule to spin off its
wholly-owned digital video subsidiary, VideoPropulsion, Inc. (VPI), to
stockholders next month.
GENROCO shareholders of record as of June 30, 2000 will receive one share
of VideoPropulsion for each share of GENROCO owned, with any restrictions on
original GENROCO shares passing through to the resulting VPI stock.
VPI, when distributed via share dividend to holders of GENROCO stock, is
expected to shortly begin trading publicly as a separate company through the
Electronic "Pink Sheets". Management will seek a listing on the NASD OTC
Bulletin Board as soon as possible. The new firm is considering opportunities
to sell shares to employees and outside investors.
GENROCO submitted a Securities and Exchange Commission (SEC) Form 10SB
application for VPI in March and is now in receipt of an SEC "no comment"
letter allowing VPI to begin independent operation as a reporting public
company. The Form 10 was filed to register VideoPropulsion's common stock
pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934
(the "Exchange Act").
"VPI is now ready for an exciting life of its own," said Carl A. Pick,
Chairman, President, and CEO of GENROCO, who will also act as Chairman for
VideoPropulsion. "We believe that this new company will be a bright star in
the emerging digital television marketplace."
In 1995, GENROCO created a Digital Video Broadcast (DVB) product line
based on the technology used in its traditional high performance storage and
networking host bus adapters (HBAs). DVB HBAs are used as the interface to
deliver MPEG transport streams from video servers to cable headends, satellite
uplinks, and a wide variety of equipment for the digital video studio. By
1998, this business operated as a division of GENROCO. Last year, the Company
created VideoPropulsion, Inc. as a wholly owned subsidiary and put all of its
video transport assets into the new entity. When VPI is spunoff, GENROCO will
be positioned to concentrate on its core SAN market while adding to
shareholder value with a firm fully focused on the arising digital television
industry.
VideoPropulsion will provide its line of VDOProd hardware and software
offerings which have been selected as the technology of choice in UNIX and
Windows NT video servers and digital video systems by firms such as Open
(BIB), SGI, Sun, Compaq, and others. The Company will also resell GENROCO's
Fibre Channel networking products into the digital video market.
Barbara R. Pick, co-founder of GENROCO, as well as VideoPropulsion's
President and CEO added, "VideoPropulsion and its partners will provide and
install digital video infrastructure that will make up the world's largest
network. Today, the major networking companies are pursuing markets in
which users need to have a computer. VideoPropulsion is providing enabling
technology for future networks that will only require users to have a TV."
Systems using VideoPropulsion hardware and software will soon provide the
infrastucture, which will allow consumers to use their TV sets for interactive
services such as email, home shopping, web browsing, IP telephony, and other
internet applications. Though volumes for DVB have been relatively low to
date, the market is expected to soar as tens of millions of digital set top
boxes find their way into homes over the next few years and interactive
digital television services begin to roll out. Several dozen VideoPropulsion
customers have been developing a wide variety of applications, such as video
on demand (VOD), for the Company's DVB controllers since 1995.
Product offerings have grown in sophistication and are being repeatedly
selected as the highest performance, lowest cost per video stream on the
market today. VPI software support includes drivers for computers using Linux
or Windows NT, as well as Sun, Compaq, and SGI platforms running Oracle Video
Server (OVS) and other applications.
About GENROCO
GENROCO, Inc. is a 25-year-old, publicly-traded engineering and marketing
company that specializes in developing I/O solutions for users of high
performance storage area networks (SANs). By providing cross-platform
support for its patented technology, the Company is able to offer unique,
extraordinarily high bandwidth, low host overhead products for these markets.
GENROCO enjoys a global customer base that includes Compaq, Fujitsu, SGI,
Sun, StorageTek, the US Departments of Defense and Energy, CERN, and other
research institutions.
Additional information about GENROCO can be found at www.genroco.com .
About VideoPropulsion
VideoPropulsion, Inc. is a leading edge digital video technology company
with expertise in providing high performance, low cost hardware & software
solutions for MPEG transport. The company's partners include Oracle, SGI,
Compaq, Sun, Lysis, Mindport, and other major video server and iDTV
applications suppliers. VDOPro products have been in active use in Europe
since 1995. Incorporated into offerings from OpenTV, Concurrent, Open, Lysis,
Peach, and others for applications such as interactive TV services and VOD,
VPI has been leading the way with its reliable and innovative products.
Additional information about VideoPropulsion can be found at
www.videopropulsion.com .
This release contains forward-looking statements based on current
expectations that involve a number of risks that could cause actual results to
differ materially. Information on the factors that might affect the financial
results of GENROCO, Inc. and/or VideoPropulsion, Inc. can be found in the
respective company's filings with Securities and Exchange Commission (SEC).
CONTACT: Carl Pick, CEO of GENROCO, 414-732-7433, or fax, 262-644-6667,
or info@genroco.com
This release was issued through DigitalWork.com -- Your Business Workshop.
More information on DigitalWork.com may be found at digitalwork.com
SOURCE GENROCO, Inc.
/CONTACT: Carl Pick, CEO of GENROCO, 414-732-7433, or fax, 262-644-6667,or
info@genroco.com/
/Web site:
genroco.comhttp://www.videopropulsion.comhttp://www.digitalwork.com/
Jun-02-2000 10:37 GMT
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US;GRCI
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