Thomson multimedia to Acquire Professional Broadcast Content Creation Activity from Philips to Strengthen its Server and Automation Professional Solutions

May 09, 2001, 01:00 ET from Thomson multimedia

    PARIS, May 9 /PRNewswire/ -- Thomson multimedia (NYSE:   TMS) has reached a
 preliminary agreement with Royal Philips Electronics for the purchase by
 Thomson of Philips' Content Creation activity for professional broadcast
 markets, a part of Philips Digital Networks' MP4Net Group.
     The transaction is expected to be completed in the coming few weeks and
 follows on Thomson's acquisition of the Philips Professional Broadcast
 activities which was completed in March. Financial details will not be
     The Content Creation activity, comprising 47 employees, is located in Salt
 Lake City, Utah USA and develops products for professional broadcast Playout
 and News Editing products.
     The proposed transaction will strengthen Thomson IT Broadcasting with
 internal strengths in both server and automation solutions, along with 3rd
 party partners in editing, automation, and asset management. IT Broadcasting
 is an activity dedicated to IT and network technologies for broadcasters. The
 transaction fits with Thomson multimedia's recently announced Digital
 Multimedia Solutions (DMS) strategy and will complement its existing
 professional broadcast activities.
     The activity will be part of Thomson's Broadcast and Network Solutions, a
 business segment focused on business-to-business solutions for broadcasters,
 content providers, network operators and advertisers aiming at deploying full
 digital video content solutions.
     This press release contains forward-looking statements regarding prospects
 for the future that involve a number of risks and uncertainties.  Among the
 factors that could cause actual income to differ materially from those
 expected are the following: business conditions and general economic
 conditions; competitive factors such as pricing and marketing efforts of rival
 companies; timing of product introductions; ability of contract manufacturers
 to meet product price objectives and delivery schedules; legislative,
 regulatory, and industry initiatives that may affect planned or actual product
 features and marketing methods; and the pace and success of product research
 and development. For more information on the potential factors that could
 affect the company's financial income, please review the relevant SEC filings.
     About Thomson multimedia
     With sales of 9.1 billion Euros (U.S. $8.3 billion) in 2000 and
 73,000 employees in more than 30 countries, Thomson multimedia
 (Paris Sicovam: 18453) (NYSE:   TMS), provides a wide range of technologies,
 systems, finished products and services to consumers and professionals of the
 entertainment and media industries.  To advance and enable the digital media
 transition, Thomson multimedia has five principal activities: Digital Media
 Solutions, Displays and Components, Consumer Products, New Media Services, and
 Patents and Licensing. The company distributes its products under the popular
 THOMSON, RCA and TECHNICOLOR brand names.  For more information: .
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