Doctor Sun is creating a Cube competitor........................................
biz.yahoo.com
Friday July 18 9:00 AM EDT
Company Press Release
DIGITAL VIDEO SYSTEMS TO PURCHASE DIVISION OF ARRIS INTERACTIVE
SANTA CLARA, Calif.--(BUSINESS WIRE)--July 18, 1997--Digital Video Systems, Inc. (DVS) (Nasdaq:DVID) and Arris Interactive L.L.C. today announced that they have reached an agreement for DVS to purchase certain assets of the Digital Video (DV) division of privately held Arris Interactive (a joint venture between NORTEL and ANTEC).
DVS will acquire DV assets including intellectual property rights, proprietary technology such as its Ad Insertion and Near Video on Demand (NVOD) systems, as well as its advanced MPEG-2 hardware.
The DV/DVS technology allows DVS to take a leadership position in producing digital to digital video that can directly communicate with set top boxes, accommodating the inevitable requirements of digital cable and Internet access such as Web TV.
``As important as the strong customer base and ongoing revenue stream is to the success of this venture, an immediate benefit of this exciting partnership is the teaming of DV's talented hardware development group with our software engineering expertise,'' said Tom Parkinson, president and COO of DVS.
``This is an ideal complement to our strategy of building additional opportunities in the existing ad insertion, NVOD, broadcast, hospitality, and emerging digital video markets.''
Dr. Edmund Sun, founder and CEO of DVS said, ``The U.S. ad insertion market offers a solid base for building our presence, but our sights are set on more significant market segments in the broader global digital technology markets.''
``This acquisition is good for the professional video industry,'' said Bob Stanzione, CEO of Arris Interactive. ``The combination will bring a synergistic product mix that will allow Digital Video and DVS to address a wider range of digital store and forward applications.''
A definitive agreement between the two companies is expected within 30 days. Details of the terms of the agreement haven't been disclosed, although Arris Interactive will receive a combination of cash, DVS stock, and an interest in Digital Video Systems' future revenues from the DV division.
Digital Video Systems develops and markets Video CD players, Video on Demand network products, and MPEG encoding and authoring products for entertainment, business, and educational uses. DVS is presently developing Digital Versatile Disk (DVD) player products. Established in 1992, DVS is a publicly held company based in Santa Clara, California, with branch offices in Taipei, Tokyo, and Hong Kong.
This release contains forward-looking statements within the meaning of the ``safe harbor'' provisions of the private Securities Litigation Reform Act of 1995 that involve various risks and uncertainties, including, without limitation, statements with respect to the Company's strategy, proposed sales of the Company's products, markets for the Company's products, and the development of the Company's products. The Company's actual results may differ materially from those described in those forward-looking statements due to a number of factors, including, but not limited to, the need to satisfy certain customary closing conditions for DVS to complete the acquisition of DV, risks of competition in the ad insertion market and the enforceability of DV's patents and other intellectual property rights, risks relating to the development and market acceptance of products of DVS and DV, and risks relating to the planned rapid growth of the business of DVS and the conduct business by DVS in foreign countries, which factors and others described in documents that DVS files from time to time with the Securities and Exchange Commission, including its Current Report on Form 8-K dated January 7, 1997.
Digital Video is a division of Arris Interactive, a joint venture between NORTEL and ANTEC Corporation. Based in Atlanta, GA, Digital Video designs, manufactures and distributes MPEG-2 decoding, switching, streaming, and multiplexing solutions that deliver advanced video services like digital ad insertion and near video on demand to subscribers. Arris Interactive will focus on the continued development and support of its industry leading Cornerstone Hybrid Fiber Coax telephony system.
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Contact:
Diana Nelson Jeff Lloyd/Tom J. Ekman
Digital Video Systems Sitrick And Company
(408) 748-2100, ext 137 (310) 788-2850 |
