News Today...
Thursday March 4, 7:26 am Eastern Time
Company Press Release
Princeton Video Image, Inc. Announces
Successful Renegotiation of Agreements With
Latin American Licensee
- Positive Impact on PVI's Operating Results and Cash Flow Going Forward -
LAWRENCEVILLE, N.J.--(BUSINESS WIRE)--March 4, 1999-- Princeton Video Image, Inc. (Nasdaq: PVII;
pvimage.com) and Publicidad Virtual, S.A. de C.V. (http://www.publicidadvirtual.com), Princeton
Video Image's exclusive Licensee in Latin America, today announced terms of a revised joint venture
agreement and a revised license agreement, both designed to bring important new benefits to both parties.
Under terms of the revised agreements and based on Publicidad's projections, Princeton Video Image expects
to receive a minimum of $250,000 to $400,000 of additional revenue and net income in calendar 1999, with
meaningful upside potential in future years.
The revised joint venture agreement provides for the purchase of Princeton Video Image's 50% interest in
Publicidad by Presencia en Medios, S.A. de C.V. and Edward Sitt. Presencia is Princeton Video Image's
current joint venture partner in Publicidad and Edward Sitt is President of both Publicidad and Presencia.
Princeton Video Image will receive an undisclosed payment in return for the purchase of its 50% share in the
joint venture. The revised license agreement provides Princeton Video Image with an undisclosed share of
Publicidad's annual revenues in the form of royalties. Both amendments were effective January 1, 1999.
In 1993, Princeton Video Image and Presencia en Medios entered into a 50/50 joint venture forming Publicidad
Virtual as a Mexican limited liability company, which was granted, in exchange for an up- front fee, an exclusive
license to use, market, and sub-license Princeton Video Image's L-VIS(TM) System throughout Mexico, Central
and South America, and the Spanish-speaking markets in the Caribbean basin.
Dennis Wilkinson, President and Chief Executive Officer of Princeton Video Image, said, ''The restructuring of
these agreements is a significant financial event for PVI as we will now share in the revenues generated by
Publicidad Virtual, without sharing in the corresponding expenses as was the case under the previous
agreements. We expect the resulting impact on PVI's operating income and cash flow will be meaningful.''
Mr. Wilkinson continued, ''Based on Publicidad's projected use of L-VIS we would expect the new license
agreement to generate a minimum of $250,000 to $400,000 of new revenue and net income to PVI's bottom
line in calendar 1999. The financial significance of this new agreement relative to PVI's current revenue base is
clear. Going forward, we anticipate meaningful upside potential of this new agreement as Publicidad's use of
our technology in Latin America continues to grow.''
Mr. Sitt added, ''The implementation of these revised agreements will simplify our relationship with PVI,
enabling us to aggressively expand our business. We intend to reach new heights in the use of PVI's proprietary
technology in the Latin American market.''
Princeton Video Image, Inc. has developed and is marketing a real-time Live Video Insertion System (L-VIS)
that, through state-of- the-art patented pattern recognition technology places computer-generated electronic
images into television broadcasts of sporting events and other programming. These electronic images range
from simple corporate names and logos to sophisticated 3-D images and animated effects. To date, PVI has
provided live video insertion services for nearly 1,000 live telecasts worldwide, including broadcasts of Major
League Baseball, National League Football, professional soccer, motor sports, and thoroughbred horseracing.
The Company is based in Lawrenceville, New Jersey, with offices in New York City.
Publicidad Virtual, PVI's exclusive licensee in Latin America, has begun its fourth year of successful operation
in the virtual advertising industry, providing live and post-production video insertion services in Mexico, Peru,
Brazil, Chile and Ecuador. It is presently expanding its business by developing strategic alliances throughout
the Latin American market. Presencia en Medios is a Mexican limited liability company, owned by a group of
private and institutional investors. Presencia is a PVI stockholder and its President, Edward Sitt, is a member
of Princeton Video Image's Board of Directors.
Any statements contained in this press release that relate to future plans, events or performance are
forward-looking statements that involve risks and uncertainties including, but not limited to, those relating to
market acceptance, dependence on strategic partners and third party sales, contractual restraints on use of
PVI's technology, a rapidly changing commercial and technological environment, competition, possible adverse
regulations, need for additional financing, intellectual property rights and litigation, and other risks identified in
PVI's filings with the Securities and Exchange Commission. Actual results, events or performance may differ
materially. PVI undertakes no obligation to publicly release the result of any revisions to these forward-looking
statements that may be made to reflect events or circumstances after the date hereof to reflect the occurrence
of unanticipated events.
Contact:
Princeton Video Image, Inc.
Lawrence L. Epstein
Vice President of Finance and
Chief Financial Officer
(609) 912-9400
pvimage.com
or
Morgen-Walke Associates, Inc.
Investor Contact:
Cheryl Schneider/Tessa Lavender-Beck
(212) 850-5600 |
