"Monday February 5, 7:37 am Eastern Time
Press Release
Cablevision Systems Corp. and Princeton Video Image Form Strategic Alliance
Princeton Video Image to Receive Cash Infusion of $17.5 Million in Equity and License Fees
BETHPAGE, N.Y. & LAWRENCEVILLE, N.J.--(BUSINESS WIRE)--Feb. 5, 2001--
Alliance Substantially Expands Marketplace for PVI;
Enhances Cablevision's Ability to Offer Compelling Entertainment
and Advertising
Cablevision Systems Corporation (NYSE: CVC - news) and Princeton Video Image, Inc. (PVI) (NASDAQ: PVII - news), today announced a strategic alliance that should help fuel a dramatic expansion of the PVI business, while giving Cablevision full and early access to PVI's groundbreaking technologies across its full range of media, sports and entertainment properties.
PVI is a global leader in digital imaging solutions and applications in virtual advertising. The company develops and markets a real-time video insertion system that places computer-generated electronic images into telecasts - including the acclaimed virtual first down marker featured in NFL telecasts. PVI has also driven major advances in digital enhancements and product placements, and is a member of the joint venture that is developing EyeVision, a breakthrough, 270 degree video system that debuted during the recent live broadcast of Super Bowl XXXV.
For PVI, this agreement will bring an immediate cash infusion in the form of an equity investment and licensing fees. Cablevision will work with PVI to develop, market and utilize innovative digital technological applications across its broad array of businesses including Madison Square Garden, the New York Knicks and Rangers, Radio City Entertainment, Rainbow Media Holdings' numerous national and regional cable networks and other content platforms.
This agreement will give Cablevision access to all of PVI's existing technologies, which are already changing audience expectations of the way they view sports programming, and hold enormous potential when applied to other forms of popular video content. It also allows Cablevision to participate fully in the development of new applications and features that can enhance the customer experience of digital television, which Cablevision will begin offering in its territories this year.
Highlights of the agreement follow:
Cablevision will make a $10 million investment in PVI in exchange for 4,000,000 common shares of PVI's stock. Half of Cablevision's investment will occur immediately, with the balance due upon PVI shareholder approval. Shareholders are expected to vote in the second calendar quarter of 2001.
Upon PVI shareholder approval, PVI will also grant Cablevision three-year warrants that will allow Cablevision to increase its ownership in PVI up to a total of 45% of the company on a fully-diluted basis at an average strike-price of $ 9.00 per share.
PVI has granted a non-exclusive license to Cablevision for all of PVI's current technologies and products, including virtual advertising, programming enhancements (especially for live sports events) and virtual product placement.
Cablevision and PVI agree to develop jointly additional technologies and products, including valuable targeted advertising over new digital set-top boxes utilizing Cablevision's state-of-the-art digital platform in the New York market.
Cablevision will prepay to PVI $2.5 million in license fees promptly and an additional $5 million will be paid upon PVI shareholder approval of the transaction.
Cablevision will receive one seat on PVI's Board of Directors.
James L. Dolan, president and chief executive officer of Cablevision, said, ``Cablevision has a rich history of leadership in the areas of national and regional sports and entertainment programming. And, as we undertake our transformation from an analog to digital platform, the opportunities presented by PVI's technologies are abundant. We welcome this new partnership as an opportunity to offer new and innovative applications which will enhance the home entertainment experience for both Cablevision customers and viewers of our networks.''
Dennis Wilkinson, president and chief executive officer of PVI, stated, ``Cablevision, with its unique and tremendous portfolio of marquee businesses, represents the perfect strategic fit for PVI and gives us the opportunity substantially to broaden our business. Our technologies have demonstrated applications in areas such as advertising, sports telecasting, television and film product placement, all areas in which Cablevision has a significant presence. This new alliance and investment will help to ensure our future growth and ability to deliver strong returns for our shareholders.''
First Union Securities acted as PVI's financial advisor on this transaction.
Conference Call
Princeton Video Image will host a conference call today at 10:00 a.m. eastern standard time to discuss today's announcement. To access the conference call over the Internet, please log on to pvi-inc.com. It is advised that you log on at least ten minutes prior to the call to download the streaming media software required to listen to the Internet broadcast. The online archive of the broadcast will be available within one hour after the live call for a period of one week.
About Princeton Video Image, Inc., (www.pvi-inc.com)
The Emmy Award winning, global leader in virtual advertising solutions for television, PVI has developed and marketed a real-time video insertion system. This system, through patented computer vision technology, places computer-generated electronic images into television broadcasts of sporting events as well as other programming. These electronic images range from simple corporate names and logos to sophisticated 3-D images and animated effects. PVI has provided video insertion services for thousands of live telecasts worldwide, including broadcasts of Major League Baseball, National League Football, professional soccer, motor sports, and other live events. PVI is the exclusive virtual advertising provider for NFL International broadcasts. Beyond sports venues, PVI's virtual imaging technology provides branding-oriented program enhancements for The Early Show on CBS. The Company is headquartered in Lawrenceville, New Jersey, with offices in New York City, Brussels and Johannesburg, as well as licensees' offices in Madrid and Mexico City.
Cablevision Systems Corporation
Cablevision Systems Corporation is one of the nation's leading entertainment and telecommunications companies. Its cable television operations serve approximately three million households located in the New York metropolitan area. The company's advanced telecommunications offerings include its Lightpath integrated business communications services and its Optimum-branded high-speed Internet service. Cablevision's Rainbow Media Holdings, Inc. subsidiary operates programming businesses including American Movie Classics, Bravo, FOX Sports Net and other national and regional services. Cablevision also owns a controlling interest and operates Madison Square Garden and its sports teams including the Knicks and Rangers. The company also operates New York's famed Radio City Music Hall and owns and operates THE WIZ consumer electronics stores and Clearview Cinemas in the New York metropolitan area. Additional information about Cablevision Systems Corporation is available on the Web at www.cablevision.com.
This news release contains forward-looking statements that are based upon the companies' estimates and expectations concerning future events and are subject to certain risks and uncertainties that could cause actual results to differ materially from those reflected in the forward-looking statements. These risks and uncertainties include, among other things, future competitive and market conditions, whether the company's product achieve customer acceptance, future business decisions, and other factors, including those described in the companies' filings with the Securities and Exchange Commission, all of which are difficult or impossible to predict accurately and many of which are beyond the control of the companies. In light of the significant uncertainties inherent in the forward-looking information herein, the inclusion of such information should not be regarded as a representation by the companies or any other person that the companies' objectives or plans will be realized. This press release shall not constitute an offer to sell, or the solicitation of an offer to buy, any securities of the companies.
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Contact:
For PVI
Sam McCleery, VP of Business Development,
609/912-9400 or
Morgen-Walke Associates, Inc.
Investors, Cheryl Schneider, 212/850-5600
or
For Cablevision
Victoria Rodriguez, 516/803-2352
Don Nathan, 212/484-7782"
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