Wednesday January 24, 8:17 am Eastern Time
Press Release
Chyron Acquires Streaming Media Design and Development
Expert Interocity
Transaction Creates Strong Play in Business to Business
Streaming Services
MELVILLE, N.Y.--(BUSINESS WIRE)--Jan. 24, 2001--In a move
aimed at establishing a leadership position in the business
to business streaming media market, Chyron Corporation
(NYSE:CHY - news), a leading provider of broadcast
technology, has acquired the privately-held, New York City
based-Interocity Development Corporation. The combination
will create a streaming services company that specializes in
delivering high end solutions and services in communications
technology.
The transaction, which will be accounted for as a purchase,
was completed for $5 million in cash and $1 million in Chyron
Common Stock. The Company expects that this transaction will
not be dilutive to earnings.
``By bringing these two organizations together, we have
created a strong business which offers powerful solutions to
clients who are implementing streaming technology,'' said
Roger Henderson, President and Chief Executive Officer of
Chyron. ``We had, at an early stage in the development of
Streaming Services, identified the need to move closer to the
customer and be involved in the decision chain at an early
stage. Many of our prospective clients need advice and
consultancy in order to help them develop often embryonic
ideas and bring them to fruition. With this acquisition,
Chyron is addressing this need by providing creative and
technical solutions at the front of the streaming media value
chain while also plainly differentiating itself from network
and encoding companies.''
Henderson continued, ``In addition to offering our clients a
full spectrum of services and products, we are gaining a
rapidly growing, profitable organization with an impressive
client base. Streaming services is an important element of
our business strategy, one which we believe will be a
significant catalyst for future growth, and we are currently
exploring how best to deploy the resources of both companies
to achieve our growth objectives for the combined entity.''
Interocity, founded in January, 1999 had revenue for the
trailing 12-month revenue period ended December 31, 2000 of
approximately $3 million, an increase of 100% over the prior
year period. Rebecca Howland, Co-Founder and Chief Executive
Officer of Interocity, will be named President, Chyron
Streaming Services and take responsibility for operations
worldwide. Interocity has provided services to a wide range
of companies, including BarnesandNoble.com, Deutsche Bank, T.
Rowe Price, T.D. Waterhouse and the Associated Press.
``Rebecca has demonstrated the ability to run a profitable
company in the new media space,'' Henderson said. ``She has
great energy and knowledge of new media and has assembled a
skilled team of people. Interocity brings both creative
capability and technical skills to our organization, and will
provide synergistic benefits to our current streaming
services.''
Rebecca Howland commented, ``In this emerging landscape of
communications technology, every company is a broadcaster -
whether you are a television network or an investment bank.
By coupling Interocity's proven track record in business
communications with Chyron - one of the most respected names
in broadcast technology - we have created a powerful new
leader in streaming media services.''
About Interocity
Interocity Development Corporation is a leading Internet
services company specializing in streaming media design and
development. With a strong focus on strategic solutions,
Interocity works with a wide range of Fortune 1000 companies
to determine and deploy streaming and rich media solutions.
From video production to systems and database engineering,
Interocity is on the forefront of rich media technology,
providing innovative and comprehensive solutions.
Founded in January, 1999, Interocity's clients have included:
T. Rowe Price, BarnesandNoble.com, Deutsch Bank, the History
Channel, People Magazine, SEI Investments, and TD Waterhouse,
among others. Interocity was supported by shareholder
Metropolitan Venture Partners, a transatlantic venture
capital firm.
About Chyron
Chyron Corporation is the world leader in the development and
delivery of products and services in the media casting market
- an area which delivers media to consumers that includes
high definition TV, standard definition TV, interactive TV or
any form of broadband. The company provides broadcast
graphics, high bandwidth and multi media signals, streaming
media technology and content management. Chyron is the only
global company with 30 years of expertise and technology to
provide the services and solutions for streaming media and
interactive television, enabling the highest quality
experience to be delivered to consumers.
Chyron Corporation's existing customer base is comprised of
nearly all television stations and TV networks throughout
Europe and North America. With offices in the U.K., France,
Hong Kong and U.S. and an enviable client list that includes
the world's leading broadcasters, Chyron has been providing
the owners of content with value added products and services
for over 30 years.
Certain of these statements contained in this press release
may be deemed forward-looking statements. Such statements,
and other matters addressed in this press release, involve a
number of risks and uncertainties. Among the factors that
could cause actual results to differ materially from these
statements and matters are the risks and other factors
detailed, from time to time, in the Company's reports with
the Securities and Exchange Commission, including, but not
limited to, the Company's Annual Reports on Form 10-K and its
Quarterly Reports on Form 10-Q.
All trademarks are the property of their respective owners.
Contact:
Chyron Corporation
Dawn Johnston, 631/845-2000
djohnston@chyron.com
or
Lippert/Heilshorn & Associates
Investor Relations: Jody Burfening/Ted Crawford
212/838-3777
Jody@lhai.com / ted@lhai.com
or
Media: Elissa Grabowski, 212/838-3777
Elissa@lhai.com |
