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Technology Stocks : C-Cube -- Ignore unavailable to you. Want to Upgrade?

To: BillyG who wrote (42519)	7/1/1999 4:25:00 PM
From: John Rieman	Respond to of 50808

Pinnacle picked-up HP's(C-Cube) server business to complement Thunder................................... tvbroadcast.com Pinnacle Systems Inc. Announces Agreement To Acquire HP's Video-Server Business Mountain View and Palo Alto, CA (6/30/1999)--Pinnacle Systems, Inc. and Hewlett-Packard Company announced that the companies have signed an asset-purchase agreement to sell HP's broadcast-video-server business to Pinnacle. Under the terms of the agreement, Pinnacle will acquire practically all assets of HP's Video Communications Division, including key technologies and intellectual property, the MediaStream family of products, and selected additional assets, as well as most managers and employees. The full purchase price is expected to be about $40 million, adjusted for changes in inventory and backlog as of the closing date. One third of the final purchase price will be paid in cash, and the remaining two thirds will be paid in Pinnacle Systems common stock. The transaction is expected to close in early August, contingent upon regulatory approval. "HP's new MediaStream servers 700 and 1600 complement Pinnacle's Thunder and iThunder video servers, and will offer broadcasters and video distributors over the Internet an advanced set of solutions for the storage and distribution of high-quality digital media," said Mark Sanders, president and chief executive officer of Pinnacle Systems. We welcome the injection of HP's talent and technology, and the advantages it will bring Pinnacle in providing industry leading solutions to create and distribute digital video content." Tom White, vice president and general manager of HP's Communications Solutions Group, added, "The synergies in our two businesses made it readily apparent that we could capitalize on our mutual strengths by simply eliminating barriers between us and combining our two digital-video groups. We believe that [our customers] will be better served by the new breadth of services under Pinnacle Systems' management." The agreement, under which HP will receive most of the purchase price in Pinnacle Systems stock, which also includes a technology-transfer agreement, underscores the two companies' vested interest in a successful merger of operations toward an improved product and service offering. The small number of HP employees who do not join Pinnacle Systems will be reassigned within HP. For more information visit www.hp.com and www.pinnaclesys.com.