LWIN news - Leap Makes Two Acquisitions to Support Fresh Approach to Wireless Data
Next 'Leap Innovation' to Marry Voice and Data, Offering Consumers an Intuitive, Personalized Wireless Service
SAN DIEGO, March 19 /PRNewswire/ -- Leap Wireless International, Inc. (Nasdaq: LWIN - news), an innovator of wireless communications services, today announced two acquisitions that support the first of its planned wireless data services, which will offer a mobile media service. Leap has agreed to acquire Backwire, a publisher of customized e-mail newsletters and developer of one-to-one content customization technologies. In addition, Leap has purchased all the proprietary technology and intellectual property of Spotcast Communications, giving Leap a personalized mobile media delivery service that can distribute targeted content by voice as well as text. Terms of the deals were not disclosed, and Leap expects to complete the Backwire acquisition during April 2001. Leap plans to integrate these technology acquisitions with its location-based myAladdin wireless technology that the company purchased in December 2000.
(Photo: newscom.com )
``These three recent data-related acquisitions are expected to give us the building blocks to develop a very simple, intuitive service that provides information to consumers the way they like it best -- by voice,'' said Harvey P. White, Leap's chairman and CEO. ``We want to deliver the right content to the right person at the right time, place and price.''
By combining its own technology and service development efforts with technology from all three of these recent data acquisitions, Leap is in the process of building a stable of intellectual property and proprietary technology protected by patent positions. Leap expects to begin commercial roll out of its new mobile media service in selected markets in the first half of 2001. Leap is designing this new service to deliver quick voice clips directly to the customer's wireless phone. The mix of clips messages is expected to be weighted toward fun, informative and personalized content and to be supported by value-focused promotions and relevant advertising. Leap plans to target different messages to customers depending on their location and time of day, as well as their own personal profile of interests and preferences. As Leap is doing with its Cricket flat-rate, all-you-can-talk local wireless service, the company plans to market this new mobile media service under a new brand name, which will also be tagged ``Another Leap Innovation.''
``The simplicity of our easy-to-use voice interface is designed to appeal to the mass consumer, a market we understand well,'' said Susan G. Swenson, Leap's president and chief operating officer. ``After trialing the service and talking extensively with our customers, we are creating a personalized, comfortable new service that we think will attract a new group of people to the world of wireless data.''
Leap expects to offer the new service initially to its Cricket customers as an add-on feature. Leap ultimately expects to roll out its new mobile media brand alongside Cricket service in all of its operational markets. For competitive reasons, Leap is not disclosing the brand name, price or initial launch markets for the new service at this time.
``Our mobile media strategy is to turn wireless service into a true information medium, like newspapers, radio, television and most recently, the Internet,'' said Doug Hutcheson, Leap's senior vice president of wireless data development. ``Our first new service will create a 'personal channel' delivering customized information, entertainment and news straight to the wireless phone. Our customers will get the best of print and broadcast delivered in bite-sized pieces. And if they want more than breaking news headlines or information snippets, additional details will be just a click away.''
Expanding Leap's mobile media capabilities
Backwire's personalization engine and team of Internet content editors are expected to give Leap the ability to select, edit, and aggregate relevant Internet content that can be delivered straight to the customer's wireless phone, customized to personal preferences and demographic data.
Leap's acquisition of Spotcast's assets gives Leap technology that provides a robust functionality in intelligent profiling, targeted content selection and distribution, data mining, data warehousing and real-time media and advertising campaign management, which allows content providers to fine-tune their demographic targets and frequency over the Internet. Leap has licensed the technology to Spotcast for use outside North America.
As the result of the acquisitions, Leap will open an East Coast office just outside the nation's capital in Alexandria, Va. Leap also will add nearly 60 employees, including Internet content editors, technical experts, software developers, e-marketing specialists and experienced executives, bringing Leap's workforce to nearly 1,000 people across the country.
About Backwire
Backwire, a leading e-marketing company, has developed a proprietary customization technology to deliver one-to-one content, commerce and advertising via electronic messaging. Backwire's system aggregates consumer preferences and demographic data and matches content, commerce and advertising to specific consumers. Since Internet executives founded the company in January 2000, the permission-based marketer has grown to serve approximately 2.7 million subscribers in its opt-in email service. Subscribers register to receive email publications in 32 popular lifestyle categories such as Health & Fitness, Travel, Personal Finance, Food & Wine, Entertainment, and Internet & Technology. In addition to its technology, Backwire has a team of editors with experience from media organizations such as MSNBC, Sports Illustrated and Forbes dedicated to aggregating the best in-depth content from 1,000 brand-name sites from Red Herring to Martha Stewart Living.
About Spotcast
Spotcast Communications introduced an advertising-sponsored mobile phone service technology that allows advertisers to ``precision target'' advertising based on a caller's, demographic profile, lifestyle interests, and time of call. Headquartered in Washington DC, with executive offices in London and Jakarta, Spotcast will continue to work with operators and media companies outside North America to create independently branded services that are linked to each other through a global network.
About Leap
Leap, headquartered in San Diego, Calif., is a customer-focused company providing innovative communications services for the mass market. Leap pioneered the Cricket Comfortable Wireless service that lets customers make all their local calls from within their local calling area and receive calls from anywhere for one low, flat rate. Leap currently has several new services in development, including data services designed to further transform wireless communications for consumers. For more information, please visit www.leapwireless.com .
Except for the historical information contained herein, this news release contains ``forward-looking statements,'' including statements reflecting management's current forecast of certain aspects of Leap's future. Forward-looking statements, which are based upon certain assumptions and describe future plans, strategies and expectations of the Company, are generally identifiable by the use of the words ``believe,'' ``expect,'' ``intend,'' ``plan,'' ``anticipate,'' ``estimate,'' ``project'' or similar expressions. These statements are based on current information, which we have assessed but which by its nature is dynamic and subject to rapid and even abrupt changes. The forward-looking statements in this news release speak only of management's views as of the date of this release and we do not undertake any obligation to update this information from this date. Our actual results could differ materially from those stated or implied by such forward-looking statements due to risks and uncertainties associated with our business. Factors that could cause actual results to differ include, but are not limited to: changes in the economic conditions of the various markets our subsidiaries serve which could adversely affect the market for wireless services; our ability to access capital markets; a failure to meet the operational, financial or other covenants of our credit facilities; our ability to rollout networks in accordance with our plans, including receiving equipment and backhaul and interconnection facilities on schedule from third parties; failure of network systems to perform according to expectations; the effect of competition; the acceptance of our product offering by our target customers; our ability to retain customers; our ability to maintain our cost, market penetration and pricing structure in the face of competition; uncertainties relating to negotiating and executing definitive agreements and the ability to close pending transactions described in this release; technological challenges in developing wireless data services and customer acceptance of such services if developed; our ability to integrate the business and technology we acquire; rulings by courts or the FCC adversely affecting our rights to own and/or operate certain wireless licenses; and other factors detailed in the section entitled ``Risk Factors'' included in our Annual Report on Form 10-K for the fiscal year ended December 31, 2000 and in our other SEC filings. The forward-looking statements should be considered in the context of these risk factors. Investors and prospective investors are cautioned not to place undue reliance on such forward-looking statements. We undertake no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise. Leap and the logo design are trademarks of Leap Wireless International, Inc. Cricket is a registered trademark and Comfortable Wireless and the Around-Town Phone are service marks of Cricket Communications, Inc.
SOURCE: Leap Wireless International, Inc.
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