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Gold/Mining/Energy : Leitch Technology Corporation - need more info -- Ignore unavailable to you. Want to Upgrade?

To: N_2_T_N_A who wrote (182)	2/11/2000 9:21:00 AM
From: Jay Anderson	Read Replies (1) \| Respond to of 202

Attention Business Editors: LEITCH ANNOUNCES STRATEGY TO ACCELERATE GROWTH Increased Emphasis on Video Over Internet and ASICS TORONTO, Feb. 11 /CNW/ - Leitch Technology Corporation (TSE:LTV) - today announced a multi-faceted growth strategy aimed at accelerating profitable growth by leveraging its core competencies in video processing in new and expanded markets. The strategy aims to achieve Leitch's mission of being the leading global supplier of high quality video technology. It seeks to extend the company's lines of business beyond its two current core markets -- broadcast interface equipment and video servers for news and sports applications. Three additional businesses have been identified for further development: video transmitted over the Internet, video sent via telecom and fiber optic circuits, and Application Specific Integrated Circuits (ASICs). "The world is embracing high quality video and by unleashing our core competencies we intend to become a major participant," said John MacDonald, President and CEO of Leitch. "Video processing skills are rare in today's communications industry and we now have a unique opportunity to take this core competency into broader new markets with tremendous growth potential." The following is a summary of the company's plans in each line of business: - Broadcast interface - Leitch has established a leading position in this market, capitalizing on its expertise in digital broadcasting. This unit is being expanded in response to industry consolidation that has given rise to reduced staffing requirements and increased need for Leitch products. Leitch is responding to this by increasing its emphasis on packaged solutions aimed at solving specific broadcast issues. - The company's Video Servers product line is targeted for the news and sports markets. The Leitch product lineup is being expanded with products like "Newsroom In A Box", an off-the-shelf solution which incorporates internet video streaming to be unveiled at the National Association of Broadcasters convention in Las Vegas during the month of April. - The company's ASICs unit will be expanded with the launch of SiCon Video Corporation. SiCon Video builds on SiCon AB, Leitch's Swedish-based ASIC developer acquired in February 1998, by establishing a corresponding Canadian development team complemented by a marketing team. Leitch already possesses the intellectual property that forms the basis for video solutions. SiCon Video will develop and market microchips from these algorithms that can be embedded into both Leitch products as well as video appliances of the future. - Video Over Internet - The mandate of the division will be to provide solutions for quality video transmission over the Web. Leitch expects to play a major role in quality improvement and will soon open an office in Silicon Valley to expedite product development and develop relationships. By bringing its considerable knowledge of high quality video to this market, Leitch's objective is to develop solutions for delivery of high quality video over IP fabrics. - Video Over Telecom and Fiber Optic Circuits poses similar challenges of image quality. Telcos are currently building a substantial infrastructure for information transmission and they are looking at video as one of the larger opportunities for filling those pipes. Leitch is already working with several telcos in point-to-point distribution of video, video over xDSL and other areas and plans to continue developing this line of business to provide solutions to the industry. Reg Tiessen, Leitch Vice President, Finance and CFO, noted the strategy will require ongoing investment to finance organic growth and acquisitions as the company moves forward. "We feel we have the financial resources and flexibility to achieve our growth objectives," he said. "We expect to be active not only in acquiring companies in new markets but also in our existing markets to broaden our product line or to gain market share." He added that acquisitions will be financed through a combination of stock and cash. Leitch Technology Corporation provides leading-edge solutions to store, switch, distribute, convert, and otherwise process high-quality audio and video signals. Applications for Leitch products span the broadcast, telco, cable, post production, Internet, and business-to-business markets. Leitch is headquartered in Toronto, ON, Canada with other key offices in Virginia, California, the United Kingdom, Brazil, Japan, Hong Kong, and Australia. -30- For further information: Press Contact: Don Thompson, Director of Marketing, Leitch Incorporated, Don.thompson@leitch.com, (800) 231-9673 X101; +1(757) 548-2300; Leitch Investor Contact: Reg Tiessen, VP Finance & CFO, +1 (416) 445-9640, reg.tiessen@leitch.com; www.leitch.com