VIDEOPROPULSION AND GENROCO IN DISCUSSIONS TO RE-MERGE
Reassembled Firm Anticipates Focus on "Glass to Glass" Digi-
tal Video
SLINGER, Wisconsin, May 1, 2001 - VideoPropulsion, Inc.
(OTC BB: "VDOP"), which was spun off from GENROCO, Inc. (OTC
BB: "GRCI") ten months ago, has begun negotiations to merge
with its former parent subject to approval by shareholders,
finalization of an agreement endorsed by each of the boards,
and completion of filings with the Securities and Exchange
Commission (SEC). The surviving company is expected to take
on the VideoPropulsion name and stock symbol, and focus its
efforts on providing hardware and software products for the
emerging interactive television and high definition digital
video image processing market.
Subject to board approval, Barbara R. Pick is expected to
remain President and Chief Executive Officer of VideoPropul-
sion. Carl A. Pick, who has been President of GENROCO and
Chairman of the Board of both organizations, is expected to
continue as Chairman of VideoPropulsion, once affirmed by
the board.
"The combined resources and infrastructure of the two
smaller firms will assist VideoPropulsion attempting to seek
a leadership role in the deployment of interactive digital
TV content and delivery," exclaims Barbara Pick. "We antic-
ipate offering unique and powerful 'glass to glass' solu-
tions involving moving video from the glass of the movie
camera lens to the glass of television screen."
GENROCO has been a producer of high performance storage and
networking products for nearly 27 years. Recently, the Com-
pany demonstrated record TCP/IP network performance on a
variety of open system UNIX platforms. In 1995, the Company
undertook a custom development project to produce a Digital
Video Broadcast (DVB) interface for a Fortune 500 computer
manufacturer. This led to the beginning of a DVB product
line, the evolution of digital video to divisional status,
the creation of the VideoPropulsion subsidiary, and its
ultimate spin-off as a separate public company in June 2000.
"When we decided to spawn an autonomous digital video busi-
ness from our traditional networking core last year, we felt
that two independently focused entities would have better
opportunities to attract capital and talent for growth,"
Carl Pick remarks. "As it has turned out, under the current
market conditions, the two smaller companies have had a more
difficult time reaching critical mass than a single one
probably will now. Additionally, interactive TV is closer
to being a significant commercial market than we had
expected it would be by this time. Our collective manage-
ment believes that reuniting the companies and reinventing
one enterprise dedicated to high bandwidth solutions con-
necting people to digital video content is the right path to
follow."
The business consolidation and name change require board and
shareholder approval, necessitating various filings. To
date, the boards of both companies have only agreed to the
transaction in principle.
VideoPropulsion showcased its "Tools for iTV" at the
National Association of Broadcasters convention in Las Vegas
April 23-26 along with its strategic partners Sun, Philips,
Agency.com, Strategy & Technology, and Mindport. The Company
expects to continue to offer high bandwidth networking prod-
ucts under the "GENROCO" brand name.
About VideoPropulsion
VideoPropulsion, Inc. provides broadband access tools for
delivering interactive applications over digital television
networks and for UNIX systems. VPI's "Tools for iTV" are
open standards hardware and software products created by
high performance networking experts and optimized for digi-
tal video transport. By offering cross-platform support for
its technology, the Company is able to deliver unique prod-
ucts for this market. VideoPropulsion's strategic partners
include Sun Microsystems, SGI, Fujitsu, Philips, Compaq,
Lysis, Mindport MCT, Scientific-Atlanta, and other major
digital video server and applications suppliers.
Learn more about VideoPropulsion on the web at:
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
VideoPropulsion, Inc. and GENROCO, Inc. can be found in the
companies' filings with the Securities and Exchange Commis-
sion (SEC).
Contact:
Don Woelz, VP of Sales & Marketing
GENROCO, Inc.
don@genroco.com
262-644-2505 |
