MP3 issue solved!
Tue, 13 Apr 1999, 7:26am EDT
REALNETWORKS ACQUIRES XING TECHNOLOGY CORP., LEADING MP3 SOFTWAR
Developer
Agreement Places RealNetworks at Center of Legal MP3 Market
Serving More Than 10,000 Artists
SEATTLE, April 13 /PRNewswire/ -- RealNetworks(R) (Nasdaq: RNWK), the
recognized leader in media delivery for the Internet, today announced it has
signed a definitive agreement to acquire privately-held Xing Technology
Corporation, the leading developer and provider of MP3 software. Xing has
been a leader in the development of high performance, standards-based digital
audio and video encoding and decoding technology since 1990.
"Xing has been at the core of the exploding MP3 revolution since its
inception," said Rob Glaser, founder and CEO, RealNetworks, Inc. "With the
acquisition of Xing, RealNetworks can now better serve the huge market of new
artists choosing to use MP3 to legally distribute their work. Moreover, by
bringing Xing's world-class development team into RealNetworks, we've greatly
enhanced our efforts to lead and accelerate the development of the digital
distribution of music and other forms of digital audio and video."
"As the leader in enabling and delivering rich media on the Web,
RealNetworks was clearly the best and most powerful home for our MP3-based
technology," said Hassan Miah, CEO, XING Technology Corp. "By combining our
MP3 and other standards-based technology with RealNetworks' market-leading
RealSystem G2, the near ubiquity of their 57 million RealPlayer registered
users, and their many strategic partners, we think this acquisition has helped
to create a company even more able to deliver the most exciting digital audio
experience."
RealNetworks will acquire Xing in exchange for common stock in
RealNetworks with a maximum value of $75 million. The acquisition, which will
be accounted for as a pooling of interests and is subject to certain customary
conditions, is expected to be completed in the third quarter of 1999.
RealNetworks expects to record a one-time charge for acquisition related
charges upon closing. Upon completion of this acquisition, these new shares
will represent approximately 1% of total shares outstanding.
Xing's core engineering team will remain in San Luis Obispo, California,
which will become a RealNetworks development facility.
Xing believes that the vast majority of all consumer MP3 files have been
created with Xing's encoding technology. Xing's highly acclaimed
AudioCatalyst MP3 software product has received 5 star ratings from MP3.com
and ZD Net. The Xing encoder is several times faster than other MP3 encoders
and the company's exclusive Variable-Bit-Rate technology allows for even
greater compression and audio quality than any other MP3 solution.
About RealNetworks
RealNetworks, Inc. (Nasdaq: RNWK), based in Seattle, is the recognized
leader for media delivery for the Internet. It develops and markets software
products and services designed to enable users of personal computers and other
consumer electronic devices to send and receive audio, video and other
multimedia services using the Web. RealNetworks can be found on the World
Wide Web at www.real.com
About Xing
Xing Technology Corporation has been a leading provider of standards-based
digital audio and video compression technology for nearly a decade. Xing has
been a leader in the multimedia revolution since 1990 by introducing a
numerous innovative technologies and products to the marketplace, including
the first software JPEG, the first software MPEG audio/video encoders and
decoders, MP3 applications and software-based DVD playback. Xing can be found
on the World Wide Web at www.xingtech.com.
RealNetworks, RealSystem and RealPlayer are trademarks or registered
trademarks of RealNetworks, Inc. Xing is a trademark of Xing Technology
Corporation.
SOURCE RealNetworks, Inc.
-0- 04/13/99
/CONTACT: Press: Steve Haworth of RealNetworks, Inc., 206-892-6051,
shaworth@real.com; Donna Mathews of Xing Technology Corporation, 805-783-0400,
ext. 2259, dmathews@xingtech.com; Financial Analysts: Paul Bialek of
RealNetworks, Inc., 206-674-2342, pbialek@real.com/
/Company News On-Call: prnewswire.com or fax,
800-758-5804, ext. 119814/
/Web site: xingtech.com
/Web site: real.com
(RNWK)
CO: RealNetworks, Inc.; Xing Technology Corporation
ST: Washington
IN: CPR MLM
SU: TNM
-0- Apr/13/1999 7:02
EOS (PRN) Apr/13/99 07:02 86
-0- (PRN) Apr/13/1999 7:17
citie
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