2014

Pinnacle Systems to Offer Total News and Sports Solutions Acquires Montage Group and Digital Editing Services



Newly Acquired Companies Form Basis of Pinnacle Systems' New Totally Networked

News(TM) Solutions Family for Broadcasting and Webcasting



    MOUNTAIN VIEW, Calif., April 7 /PRNewswire/ --
 Pinnacle Systems, Inc. (Nasdaq:   PCLE), a leader in professional and consumer
 video solutions, today announced the acquisition of Montage Group Inc., a
 pioneer of networked non-linear editing, and Digital Editing Services Inc.
 (DES), a leader in real-time video analysis and database solutions.
     As a result of these two acquisitions, Pinnacle Systems is launching an
 exciting broadcast and Internet news solution, Totally Networked News(TM)
 comprised of networked news solution, VorteXNews(TM), and a new networked
 sports video server and analysis solution, Omega.  "We believe that networked
 content creation solutions in news and sports can provide exciting growth
 potential as broadband networks are widely deployed," said Mark Sanders,
 president & CEO of Pinnacle Systems, Inc. "News and sports are two of the most
 critical revenue drivers for broadcasters, cable operators and web content
 producers. Our strategic aim is to supply these important markets with
 compelling solutions that scale across the broadcast, cable and Internet
 marketplace."
     "The Montage Group and DES are proud to be part of the Pinnacle Systems
 family, and we look forward to working together to develop the best, most
 comprehensive solutions for broadcasters and sports organizations across the
 country," said Dave Engelke, president of both the Montage Group Inc and DES.
 
     About VorteXNews(TM)
     VorteXNews gives users the ability to ingest, edit, store, broadcast and
 stream to the Internet live news and sports content entirely in the digital
 domain. It is BroadNeT(TM) compliant, enabling graphics and text to be easily
 moved across networks for seamless production. Stations can network this
 non-linear newsroom editing system, to digitize video feeds from tape or via
 satellite as it's streaming into the facility. The digitized video can be
 stored on a networked video server to enable immediate access to content by
 the entire news production team.
     "As content creators and distributors make the switch from tape to
 digitally-based solutions, they will need comprehensive editing and graphics
 solutions that integrate seamlessly," said Bob Wilson, vice president for
 broadcast group at Pinnacle Systems, Inc. "Broadcasters and webcasters need a
 fast and flexible networked solution for content having time value -- a
 'Totally Networked News Solution.' This is a major step in our continuing
 drive to supply innovative solutions for broadcasters and webcasters."
 
     About Omega Sports
     A fast growing segment of the video marketplace is making networked video
 content easily available for analysis and re-purposing. The Omega sports
 package from DES has been chosen by many leading professional and college
 teams for their video server and image database needs. Leading NFL teams such
 as the Denver Broncos, New York Jets, and Seattle Seahawks as well as some of
 the nation's top college teams such as Stanford, UC Berkley, UCLA, Wisconsin
 and Florida State University have chosen the Omega system. Pinnacle Systems
 intends to leverage DES's market positions with its own industry leading video
 platform technologies and streaming solutions as sports organizations and
 rights holders expand the use of video at live venues as well as streaming
 their content to the Internet.
 
     Details About the Acquisitions
     Pinnacle Systems is acquiring all intellectual property, product and
 software rights, together with all other assets and liabilities of both
 Montage Group and DES, and will account for both transactions as a purchase.
 Under the terms of the two stock-for stock purchase agreements, Pinnacle
 Systems will issue a total of approximately 400,000 shares of Pinnacle Systems
 common stock in exchange for all outstanding shares of both Montage Group and
 DES. This equates to an approximate combined purchase price of $12 million,
 plus the assumption of approximately $3 million in assumed liabilities. In
 addition, Pinnacle Systems will pay additional "earn-out" amounts for each
 company based on their respective sales and profitability during the following
 12 months for DES and the following 24 months for Montage Group. The DES
 purchase transaction closed on March 30, 2000 and the Montage purchase
 transaction closed on April 7, 2000.
 
     About Pinnacle Systems, Inc.
     Pinnacle Systems' broadcast, desktop, and consumer products provide video
 professionals and consumers cutting-edge digital video tools to create, store,
 distribute and view web enabled digital video easier and more affordably than
 ever before. Pinnacle Systems may be reached at 650-526-1600 or on the World
 Wide Web at www.pinnaclesys.com.
     NOTE:  All trademarks and registered trademarks are the property of their
 owners and are used for identification or reference purposes only, with no
 intent to infringe on copyrights.
 
 

SOURCE Pinnacle Systems, Inc.
RELATED LINKS
http://www.pinnacle.com

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