To: Ian deSouza who wrote (32769 ) 4/28/1998 2:49:00 PM From: DiViT Respond to of 50808
Nimbus & DIVX... Nimbus CD International and Digital Video Express Announce Multi-Million Disc Replication Agreement; Nimbus Further Expands DVD Production Capacity 04/28/98 Business Wire (Copyright (c) 1998, Business Wire) CHARLOTTESVILLE, VA--(BUSINESS WIRE)--April 28, 1998--Nimbus CD International, Inc. (Nasdaq: NMBS) and Digital Video Express, LP, developer of the new Divx home video entertainment system, announced today that they have signed a five-year, multi-million disc replication agreement. The companies estimate the potential for total disc production could exceed 150 million units over the contract period. The actual number of discs produced will depend upon the ongoing growth of Divx in the consumer marketplace. Additional terms were not disclosed. Lyndon J. Faulkner, Chairman and Chief Executive Officer of Nimbus, said, "This large-volume manufacturing contract is an important part of our growth strategy. We are delighted to be the first of only a few suppliers in our industry selected to bring this exciting new product to market. Divx has great market potential, and this five-year agreement places Nimbus in an excellent position to capitalize on the opportunities." "This agreement puts in place another key component of the Divx launch strategy and long-term business plan," said Richard L. Sharp, Chairman and Chief Executive Officer of Digital Video Express. "By bringing together many of the top resources within the entertainment industry, including leading hardware manufacturers, studios, retailers and replicators such as Nimbus, we have positioned Divx for a strong introduction into and sustainable growth within the home entertainment marketplace. We look forward to tapping the considerable experience and expertise of Nimbus." Nimbus, which distinguished itself as one of the first compact disc replicators to offer DVD production services, is one of the world's largest independent manufacturers of DVDs, having already replicated nearly 2.5 million discs. The Company also served as a paid consultant to Divx during the development of the format in 1997 and early 1998. Nimbus also announced today that it is expanding its DVD production capacity to accommodate the anticipated increase in demand. The new equipment, which will be installed within Nimbus' U.S. operations, will support all DVD formats including DVD -9 as well as Divx discs. The expansion will add an additional 12 million DVDs to Nimbus' existing annual capacity, bringing the Company's total worldwide production capability to more than 28 million discs. continued...biz.yahoo.com