Graphics Agrees to Spin Off European Broadcast Operations to SGI Japan
MOUNTAIN VIEW, Calif. (April 25, 2006)—As a continuation of its strategic agreement with SGI Japan, Silicon Graphics (OTC: SGID) announced today that it has reached a preliminary agreement to spin off Silicon Graphics Broadcast Europe which has served as a dedicated broadcast business unit in EMEA since 2004. The European broadcast group will become an independent SGI reseller through a 100-percent investment by SGI Japan Ltd.
In November 2001, SGI entered into a long-term exclusive distribution agreement with SGI Japan to supply SGI equipment, services and solutions in Japan. SGI Japan is jointly owned by SGI, NEC and NEC Soft. Under the agreement, Silicon Graphics Broadcast Europe will be named Silex Media and continue to provide SGI-based solutions to broadcast customers throughout Europe. Silex Media will become an asset of SGI Japan.
"Today's announcement is representative of a more cost effective and a new strategic approach to address some of our vertical segments that we will continue to develop," said Dennis McKenna, CEO, SGI. "The new company combines the independence of a channel partner with proven experience in providing and integrating SGI solutions for broadcast. This new structure gives the EMEA broadcast team the flexibility to develop more new products that address the needs of this demanding vertical market, while continuing to add value to SGI products and the SGI brand."
SGI continues to work closely with SGI Japan, most prominently on collaborative workgroup and production workflow solutions for NHK. The European broadcast team developed a mass storage solution for Saarländischer Rundfunk (SR) in Germany; a solution was later deployed by NBA Entertainment in the United States.
As Silicon Graphics Broadcast Europe, the EMEA team leveraged its industry expertise and architected IT infrastructures for such customers as Danish Broadcasting Corporation (DR); ORF, Austria's public service broadcaster; Saarländischer Rundfunk (SR), a public broadcaster in southwestern Germany; and Euskal Irrati Telebista (EiTB), the Basque Country Regional Television from the north of Spain.
SGI remains committed to supporting and serving its international production and post-production facility customers such as Deluxe and Ascent Media. These customers will be served directly by SGI.
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