DIVA PLANS EXPANSION OVERSEAS
Leading Provider of Video-On-Demand in the U.S. To Open London Office
Garry Stephen, Managing Director of DIVA U.K., To Head Effort
MENLO PARK, CA
(FEB. 4, 1999) – DIVATM Systems Corporation, the leading provider of video-on-demand through cable television systems in the U.S., announced today that the first phase of its expansion internationally will begin with the establishment of DIVA U.K. as its agent in London. DIVA Chairman, Paul M. Cook, said London will serve as the base for DIVA's first overseas activity, focused initially in the United Kingdom, after which the company plans to expand elsewhere in Europe. Investment banker Garry Stephen, Managing Director of DIVA U.K., is the executive in charge.
"We believe that the market potential overseas will be very significant," Cook said. "And we especially think that market conditions in the U.K., where cable television is already available to nearly 12 million homes but penetration is still barely 30 percent, represents a tremendous opportunity for economically-viable and compelling video-on-demand services such as DIVA's. We are very excited about the prospects of working with multichannel video providers there to demonstrate just how appealing instant and easy access to hundreds of movies and television programs is to consumers."
Stephen will be responsible for spearheading DIVA's overall business development activities in the U.K., including relationships with cable and telecommunications companies, programming agreements and operations. His experience in strategic and financing issues related to telecommunications and new media businesses more recently included serving as Managing Director of Broadview Associates, of which he was founder of their telecommunications practice in 1996. His career has also included management, major financing, and merger and acquisition responsibilities with NatWest Markets, Credit Suisse First Boston Ltd., Lloyds International Ltd., and CSR Ltd.
DIVA, a full-service organization, provides cable operators with seamless integration of a complete video-on-demand solution including headend hardware and software, billing interface, digital broadcast interoperability, bandwidth efficiency, marketing, cable system training, a wide-range of compelling programming, 24-hour/7 day support, and a user-friendly on-screen navigator. DIVA commercially launched its digital video-on-demand entertainment network over cable television systems in the Fall of 1997 and is now deployed in five U.S. cable systems. DIVA's on demand TV gives customers instant access to hundreds of the latest Hollywood movies, classic "library" titles, and an outstanding package of children's and family programming at any time. Additionally, the service offers fast-forward, pause, and rewind functionality.
DIVA has entered into licensing arrangements with major movie studios and other programmers covering more than 3,000 titles. Among the studios and cable networks that
license movies and other content to DIVA are Warner Bros., Disney, Sony, Tri-Star, Universal Pictures, Dreamworks, Twentieth Century Fox, ESPN, Bravo, Playboy TV and HBO. For its initial deployments, DIVA receives new movie releases in the same window as DBS and pay-per-view services.
DIVA Systems Corporation (www.divatv.com) is a privately held company founded in June 1995 and is headquartered in the heart of California's "Silicon Valley" on the campus of SRI International (formerly the Stanford Research Institute), in Menlo Park.
Certain statements contained in this release, including those relating to the Company's continued leadership status in the domestic VOD industry and access to programming content, its future establishment of business relationships in the U.K. and in elsewhere in Europe, the future conduct of operations and other business development activities in the U.K. and in Europe, its ability to successfully deploy and compete in the U.K., its ability to successfully deploy and compete elsewhere in Europe, the size and opportunity presented by the market for VOD services in the U.K., and the Company's ability to access that market are forward looking statements. No assurance can be given that future results will be achieved. Actual events or results may differ and may differ materially as a result of risks facing the Company or the risk that assumptions may differ from those underlying the statements contained in this release. Such risks include, but are not limited to, that the Company has substantial future capital requirements, its business is dependent on long term cable operator agreements and continued access to movies other content which cannot be assured domestic business model is unproven and the ability to alter its business model to meet market and regulatory factors outside the U.S. is not established, it may not be able to undertake or sustain the cost of development efforts necessary to adapt its technology for use in the U.K. and in other European countries, any delay necessitated by such development efforts may have an adverse effect on deployment opportunities in the U.K. and elsewhere in Europe, and that its business will depend on obtaining appropriate non-U.S. rights to programming, tailoring them to foreign markets, and subscriber acceptance of its service. These risks and other risk factors are set forth in the Company's filings with the Securities and Exchange Commission.
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