BDE...I don't think this has been posted yet
Julie
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Brilliant Digital and e-New Media Form Multimillion Dollar Strategic Relationship for Asia
Business Wire - March 01, 2000 08:41
LOS ANGELES & HONG KONG--(BUSINESS WIRE)--March 1, 2000--
- First Joint Venture Partnership in Asia Includes License for
Content Distribution, Content Co-Production and a
Strategic Equity Investment -
Brilliant Digital Entertainment, Inc. (AMEX:BDE), a leading Internet entertainment content and tools developer, announced the formation of its first strategic Internet distribution, content co-production and revenue sharing relationship for Asia, with the Hong Kong-based telecommunications, information services and Internet company, e-New Media (0128-Hong Kong).
In conjunction with the agreement, e-New Media has also purchased an approximate 5% equity stake in Brilliant Digital through the purchase of $4 million of common stock for $6.00 per share. Additionally, e-New Media has been granted warrants to purchase 307,692 shares of Brilliant common stock for $6.50 per share, allowing them to increase their stake to approximately 7%.
Under the terms of the content agreement, e-New Media will pay $2.5 million and royalties to acquire a 6-year license to localize and distribute select existing and newly created Brilliant Digital Entertainment 3-D digitally animated content in territories including Japan, China, Hong Kong, Singapore, Taiwan, Korea, Malaysia, Indonesia, Philippines, Thailand, Vietnam and Sri Lanka.
In addition, Brilliant and e-New Media each have a short term option to form a 50/50 joint venture to create content using Brilliant's B3D Studio tool suite in Asia. Brilliant would contribute to the joint venture a 5-year license to its alpha level B3D tools technology in exchange for $2.5 million and an ongoing revenue-based royalty from the joint venture. Additionally, e-New Media would fund production of content produced by the joint venture.
Mark Dyne Chairman and CEO of Brilliant Digital Entertainment commented, "e-New Media shares our vision for the evolution of the digital marketplace, and our broad, multifaceted partnership with them provides the perfect platform from which to penetrate the enormous and fast growing Internet market in Asia. Given the variety of cultural and language barriers in tapping the Asian market, a major local partner is essential to success. We are excited to have a company of e-New Media's regional strength on board with us.
"We intend to build numerous joint venture and technology licensing relationships with partners in specific content and territorial market segments to develop the most appropriate platform for advancing our technology, our content distribution methods and unique content applications."
Andrew Wilson, a director of e-New Media commented: "We are very pleased to cement this relationship. Brilliant produces the world's most exciting Internet properties and owns the most powerful 3D visualization, narrative and digital editing tools and technologies for the web today. e-New Media is focused on helping Asian content providers leverage the Internet to build new profitable business models that benefit from the rapidly converging worlds of content and commerce. We look forward to a positive future together"
About e-New Media
e-New Media, which is listed on the Hong Kong Stock Exchange (Stock number 128), is an international telecommunications and Internet company providing specialized solutions for telephone and Internet based transactions. The company operates systems that enable its customers to sell and deliver digital products and services through the worldwide telecommunications and Internet infrastructure to the end-user and to collect the payments. e-New Media will employ Brilliant's proprietary technologies to provide a three-dimensional interactive environment for the pan-Asian e-commerce platform it is currently developing, which also leverages the company's recently acquired HyperLOCK technology and the billing capabilities of the company's Internet payment system, NetCharger.
About Brilliant Digital Entertainment
BDE is engaged in the development and distribution of cutting-edge interactive content and related e-commerce capabilities for the Internet, broadband, television and other media. Brilliant is focused on two markets: (1) 3-D, digitally animated content developed using Brilliant's proprietary software tool set and Brilliant's B3D file format, and displayed on Brilliant's Digital Projector; and (2) "live" online and television auction broadcasts as well as Internet and telephone bidding and e-commerce services, in conjunction with top auction houses through its The Auction Channel subsidiary. More information on Brilliant Digital Entertainment may be found at bde3d.com and on The Auction Channel at auctionchannel.com.
Information about Forward Looking Statements
Statements in this news release that relate to Brilliant's intent to build joint venture and technology licensing relationships with other partners in specific content and territorial market segments, expectations of market growth, future plans, financial results or other projections, events or performance are forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Act of 1934, as amended. Actual results may differ materially due to a variety of factors including: (i) the commercial success of Brilliant's content with customers of e-New Media, (ii) e-New Media's commercial success, (iii) the commercial success of Brilliant's Multipath Movie titles to be distributed in e-New Media's Territory, (iv) consumer willingness to initiate larger downloads over lower bandwidth connections, and (v) other factors set forth in Brilliant's most recently filed Form 10-KSB report and 10-QSB report which are available from Brilliant Digital Entertainment's Investor Relations department and may be obtained by calling or writing to our investor relations company, Jaffoni & Collins at 212-835-8500 or bde@jcir.com.
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