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To: Manuel Vizcaya who wrote (50625)	2/3/2001 9:59:39 AM
From: John Rieman	Respond to of 50808

ReplayTV sells out............................... geek.com SONICblue to buy ReplayTV posted 11:56am EST Fri Feb 02 2001 NEWS SONICblue announced that it has signed a letter of intent to acquire ReplayTV, Inc. Under the terms of the letter, SONICblue will give ReplayTV an aggregate of 16 million shares of common stock and options and warrants to purchase shares of SONICblue common stock. In exchange, SONICblue will receive ReplayTV's outstanding equity interests, and ReplayTV will become a wholly-owned subsidiary of SONICblue. Read more in the press release. JOEL'S OPINION I didn't see this one coming. Most recently, ReplayTV announced that it was going to start licensing its technology to set-top box manufacturers. I figured that the licensing would turn the company around and bring about profitability. It looks like the company couldn't wait and is being acquired instead. As for SONICblue, the company has made a major impact on consumers with its RIO brand of MP3 players, HomeFree home networking solutions, Diamond Internet access products, and frontpath Information Appliances. It also released its own PDA--the Diamond Mako--which is making a HUGE splash in the United States. Now it wants to play in the digital video area, too, so it gobbled up ReplayTV. I'm looking forward to seeing what this acquisition does to ReplayTV. SONICblue has an amazing distribution channel so I can only imagine that we'll see the ReplayTV technology popping up in a number of set-top boxes. I wouldn't be surprised if SONICblue decides to continue making the ReplayTV devices and tries to sell them through its distribution channels. If it does decide to go that route, expect very low-priced ReplayTV devices in the near future. After all, the company released the Diamond Mako (a rebranded Revo Plus) for far below what the Revo Plus was selling for. I can only assume it would do the same with ReplayTV. One more thing: the CEO of ReplayTV is quoted as saying, "We believe that integrating our two companies' technologies will allow us to deliver the next generation of digital entertainment products to consumers." This could mean that SONICblue is planning to take the technology of ReplayTV and integrate it into its other offerings and offer a new device capable of storing and playing MP3s, networking to the home network, and allowing you to control your television. I can't wait!