Mark:
The fundamental data is from the old 7th Street Co., After the merge, they have new products, new CEO, all from the private co. Street Technologies, Inc. BTW, The CEO is from Lehman Brothers, should have lots of connections in the financial world! Read the following news...
7th Level, Inc. and Street Technologies, Inc. Merge to
Form 7th Street.com
RICHARDSON, Texas, Feb. 17 /PRNewswire/ -- 7th Level, Inc. (Nasdaq: SEVL - news) and privately held STREET
Technologies, Inc. today announced a merger of the two companies to form a powerful organization in the online
enhanced-learning and communications market leveraging their leading Internet interactive streaming and animation technology.
The name of the new entity will be 7th Street.com and will trade on Nasdaq under the symbol ''SEVL''.
7th Street.com will provide its customers with essential training and communication products and services. The company's
products will feature the most advanced prepackaged and customized learning offerings for Internet and intranet delivery and a
suite of high impact communications products targeted toward web community development and website enhancement. 7th
Street.com's suite of products are based on the convergence of two highly advanced Internet streaming technologies which
allow interactive multimedia and animation to be accessed instantly over networks. The new company brings market and
technological leadership that will enhance the existing customer base of both companies.
7th Street.com's learning and communication orientation serves as the ideal vertical market for the company's long-term
strategy of providing a critical value-rich service to promote enhanced education for the corporate training and consumer
markets, as well as, education and communications for Internet community development. Website navigation, automated help
desk and custom tutorials are all products offered by 7th Street.com.
Donald Schupak, former Chairman of 7th Level, and new Chairman of 7th Street.com, commented, ''Our ongoing strategy is
to create value for our shareholders by leveraging and vertically integrating our technology, starting with the strong base that
Street has developed in the corporate training and consumer markets. By the end of 1998 Street's library consisted of
approximately 200 enhanced multimedia titles and its distribution network consisted of more than 50 active resellers of its
corporate training offerings and several hundred web sites selling its private labeled training to consumers.''
Effective Feb 16, Stephen P. Gott has been named as President and CEO of 7th Street.com. Mr. Gott was previously the
Chief Technology and Operations Officer of Lehman Brothers and the founder, President and CEO of STREET Technologies.
Donald Schupak adds ''Stephen Gott has the wealth of experience and knowledge to firmly guide 7th Street.com in this rapidly
growing market. He had the vision, confidence and operating experience to leave Lehman Brothers to start STREET
Technologies and build it to its current position of prominence.''
Gott, commented, ''We are excited about the new opportunities that will be available to us through 7th Level's advanced
animation technology. This technology, coupled with STREET Technologies' multimedia streaming capabilities, will enrich 7th
Street.com's service offerings and provide the added dimension to drive our training business to higher and more sophisticated
levels.''
7th Street.com is a content aggregator and through its association with world class publishers offers hundreds of learning titles
delivered to the desktop, all with interactive fullscreen multimedia. The catalog continues to grow with over 200 interactive
multimedia tutorials on popular business applications, such as Microsoft Office 95 & 97, Windows, Microsoft Certified
courseware, programming, network training, the Internet, financial applications, soft skills and more.
7th Street.com will focus on the online training market, where STREET Technologies currently provides services to a market
estimated to grow to $4.1 billion by the year 2001 according to industry analysts. IDC estimates that the technology-based
training category will grow at a compounded 30% per year growth rate as compared to 7% for traditional instructor led
training. Ellen Julian, Senior Analyst, IDC, described the boom market for web-based training as ''one of the most dramatic
growth industries in existence today, showing clear signs for long term viability.''
In conjunction with today's announcement, the company also announced the launch of its new consumer brand, Tutorials.com,
the most dynamic and enriching personal tutorial community available on the Internet. 7th Street.com already provides
consumers all over the globe with the opportunity to learn hundreds of subjects over the Internet at a fraction of the cost of
traditional methods such as classroom or CD-ROMS.
Tutorials.com is the world's leading provider of immediately accessible multimedia training courses and tutorials. This online
library is targeted to both the mass consumer audience who frequently uses the Internet as well as the large and growing
segment of professionals and students who can be characterized by self-sufficiency and who demand instant results. Users of
Tutorials.com can choose from a variety of courses covering a wide range of subjects. Customers can also access 7th
Street.com's products through private branded resellers such as America Online, CompuServe, Prodigy, Gateway, IBM,
Beyond.com and Digital River.
In addition to Tutorials.com, LearningUniversity.com provides corporations with a comprehensive source for employee training
and enrichment. Companies such as Ciba Specialty Chemical, IBM, Dow Jones and Metamor are among the organizations
benefiting from the productivity gains as a result of using LearningUniversity.com.
The new entity is strategically positioned to provide its corporate, government and academic customers and resellers a wide
range of relationships with its vertically integrated learning service and community-enhanced animated communications suite of
solutions.
7th Street.com's award-winning patented animation technology has evolved from its early roots as an entertainment software
engine to create CD-ROM content. Its current capability of providing streamed animation over the Internet has uniquely
captured the need for enriched and engaging content.
In consummating the transaction, 7th Level today issued to Street's shareholders 4,948,182 shares of 7th Level Common
Stock and shares of 7th Level Series D 8% Preferred Stock with an aggregate liquidation preference of $21,643,970. Upon
the receipt of shareholder approval, the Series D shares will convert into the Company's Common Stock at $3.00 of liquidation
preference and dividends per share. In addition to the preferred dividends, the Preferred shares are entitled to participate with
the Common Stock in dividends and distributions and to vote on most matters on an ''as converted'' basis.
Donald Schupak, Chairman of 7th Level, Inc. will be the Chairman of the new entity. Stephen P. Gott, President and CEO of
four year old STREET Technologies and former Chief Technology and Operations Officer of Lehman Brothers from 1986 to
1994 will be President and CEO of the merged Company. Marc E. Landy previously CFO of STREET Technologies will
serve as Chief Financial Officer. Kevin C. Riley joins the 7th Street.com senior management team as Executive Vice President,
Sales and Marketing. Kevin was the former Vice President of Sales and Marketing at Ziff Davis Education.
The new Board of Directors will include Donald Schupak, Stephen Gott, Merv Adelson, Jim Cannavino, and Robert Ezrin, all
of whom serve as directors of the constituent companies.
The financial adviser to 7th Level is Donaldson Lufkin & Jenrette.
7th Street.com is committed to providing its customers with the most advanced learning and high impact communication
products available over the Internet and intranets. The 7th Street.com suite of products is based on the convergence of two
highly advanced Internet streaming technologies, which allow interactive multimedia and animation to be accessed instantly over
the Internet and intranets. For further information contact us at 7thstreet.com.
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