Hi Steve,
I'm not sure if you have read today's news by SOFN.
But I think it clearly points out that SOFN is capable of a lot greater growth than
either you or I could predict.
They added an additional 1 million customer footprint with MediaCom for only 3.5
million shares of SOFN stock.
Think about it Steve. How many more millions of customers can they add to SOFN
if they need only give away 3.5 million shares each time?
That's the definition of non-dilutive factor.
That brings SOFN to 3 million domestically, and 1 million abroad.
Does this deal change your tune?
MediaCom is a big potato, not a small fry.
biz.yahoo.com
Wednesday July 7, 6:45 am Eastern Time
Company Press Release
SOURCE: SoftNet Systems, Inc.
SoftNet and Mediacom Sign Exclusive 10-Year
Agreement to Add Over One Million Homes Passed to ISP Channel
ISP Channel Increases Homes Passed by More Than 50% to Nearly 3 Million;
Cable TV Veteran
Rocco B. Commisso to Join SoftNet Board of Directors
SAN FRANCISCO and MIDDLETOWN, N.Y., July 7 /PRNewswire/ -- SoftNet
Systems, Inc. (Nasdaq: SOFN - news)
and Mediacom LLC (''Mediacom'') today announced they have signed an exclusive
agreement to deploy SoftNet's ISP
Channel high speed Internet services throughout Mediacom's cable properties.
Including the recently announced acquisitions of
Triax and Zylstra cable systems, Mediacom will deliver more than one million homes
passed to ISP Channel. With nearly three
million committed homes passed, ISP Channel now ranks as the third largest
independent high-speed cable ISP behind
@Home and RoadRunner.
The agreement, which is subject to completion of final documents, is for ten years,
with a minimum of five years guaranteed.
The terms of the affiliate agreement are similar to standard ISP Channel revenue
sharing arrangements and include a
commitment by Mediacom to upgrade its cable systems to carry two-way high
speed Internet services over a three-year
period.
As compensation for Mediacom's upgrade costs, rollout commitments, and for the
exclusive long term rights to deliver cable
modem and set-top high speed Internet access services to Mediacom's customers,
SoftNet will issue to Mediacom 3.5 million
shares of SoftNet common stock. After the issuance of these shares, SoftNet will
have approximately 25.6 million fully diluted
shares and Mediacom will become the largest shareholder of SoftNet, owning
approximately 13.66% of SoftNet's fully diluted
shares. Under the agreement, Rocco B. Commisso, Chairman and CEO of
Mediacom and a recently elected board member of
the National Cable Television Association (NCTA), will become a member of
SoftNet's board of directors and its executive
committee.
Dr. Lawrence B. Brilliant, Chairman and CEO of SoftNet, said, ''Our agreement
with Mediacom is the largest cable affiliation
in ISP Channel's history. Our new partnership with a top-ten MSO gives SoftNet
cable industry sponsorship and the direct
involvement of Mediacom's CEO, Rocco Commisso, one of the most respected
senior executives in the cable industry. Mr.
Commisso's demonstrated track record in aggressively upgrading Mediacom's
broadband networks and delivering enhanced
services to its customers in smaller cable markets is very important to us. I personally
look forward to working with Mr.
Commisso. I welcome his cable industry leadership and believe that his experience
and reputation will significantly contribute to
our campaign to attract additional cable affiliates, large and small, to ISP Channel.''
Brilliant continued, ''This is a great moment for all of SoftNet's shareholders,
affiliates and employees. The addition of
Mediacom's over one million homes passed and existing cable modem customers
represent approximately a 50% increase in
our homes passed numbers and brings our cable modem subscriber count to nearly
5,000. Over the term of this agreement, we
expect to see cable modem penetration rates reach 20% to 30%, giving the ISP
Channel as many as 300,000 additional cable
modem subscribers.
Rocco B. Commisso, Chairman and CEO of Mediacom, said, ''Over the past year
we have extensively evaluated our options
for accelerating the delivery of high-speed cable modem service to our customers.
As the leading MSO focused on providing
cable television service to smaller communities, Mediacom was courted by all of the
top high-speed cable Internet companies.
Based on the markets we serve and the rapid deployment schedule our customers
expect, partnering with the ISP Channel was
by far the superior choice for our company.
''The ISP Channel has the technical resources, financial stability and industry
experience to help Mediacom fulfill its
commitment of closing the 'digital divide' that has developed across America
between the major cities and smaller towns and
communities. Their top-notch management team, led by Larry Brilliant and Ian
Aaron, share our view that the introduction of
high-speed Internet access in the smaller markets should not trail behind San
Francisco and New York. The ISP Channel
understands the needs of the smaller systems better than any company we have seen.
I will work closely with SoftNet's senior
management to ensure that the ISP Channel will become the provider of choice for
quality high-speed Internet service to
small-town America.''
About SoftNet Systems, Inc. and ISP Channel
SoftNet Systems, Inc. is a leading high-speed broadband Internet access and
content services company focused on partnering
with small to mid-sized cable operators. Through its ISP Channel, the company
provides a complete turnkey Internet service to
partnering cable affiliates, similar to @Home.
ISP Channel's services to partnering cable affiliates include cable head-end
equipment and integration, Internet backbone
connectivity, and technical support and customer care twenty-four hours a day,
seven days a week. ISP Channel offers its
customers high speed Internet access at speeds up to 500 KB per second when
downloading files, graphics, audio and video.
Additional ISP Channel services include e-mail, personal web pages, news groups,
and full multi-media capabilities. ISP
Channel also provides access to Microsoft® Internet Explorer and Netscape®
Navigator browsers.
Through SoftNet's Intellicom subsidiary, the company markets a satellite-based
VSAT commercial Internet link. SoftNet's
unique cost-saving technology infrastructure includes Intellicom VSAT satellite links
to the company's network operations
center (NOC), which replace more expensive terrestrial telecommunications data
lines.
SoftNet's NOC is located in Silicon Valley, while its corporate headquarters is
located in San Francisco. For further
information about SoftNet and its services, please visit softnet.com ,
ispchannel.com or call
415-365-2500.
About Mediacom
Mediacom, with headquarters in Middletown, N.Y., is one of the fastest growing
cable television companies in the U.S. Upon
completion of the Zylstra and Triax acquisitions scheduled for the fourth quarter
1999, Mediacom's broadband network will
pass over one million homes and serve 725,000 cable television and Internet
customers in 20 states. These transactions will
establish Mediacom as the leading operator focused on providing cable television
service to non-metropolitan markets and will
position Mediacom among the top 10 independent cable television companies in the
United States. More information about
Mediacom can be obtained by visiting its Web site at: www.mediacomllc.com .
-DavidCG
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