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FRONT PORCH DIGITAL
1140 PEARL STREET, BOULDER, COLORADO 80302
NEWS RELEASE FOR AUGUST 18, 2004 AT XXX AM EDT
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Contact: Allen & Caron Inc Front Porch Digital, Inc.
Jill Bertotti (investors) Thomas P. Sweeney III, Chairman and CEO
jill@allencaron.com Front Porch Digital (Broadcast &
Len Hall (financial media) Media Services Division)
len@allencaron.com Michael C. Knaisch, President
949-474-4300
FRONT PORCH DIGITAL COMPLETES ACQUISITION OF
MANAGEDSTORAGE INTERNATIONAL
BOULDER, CO, AUGUST 18, 2004 - Front Porch Digital, Inc. (OTCBB: FPDI.OB) today
announced that it completed its acquisition of privately-held ManagedStorage
International, Inc. ("MSI") located in Broomfield, CO, effective today. As
previously reported on August 17, 2004, the Company entered into an agreement to
acquire MSI for an aggregate purchase price of approximately $39 million to be
paid in restricted shares of Front Porch Digital common and preferred stock.
Thomas P. Sweeney, Chairman and CEO of the combined company, said, "We
believe the acquisition of MSI is an important step in our strategy to
substantially increase revenues, improve bottom-line performance and enhance
shareholder value. We have strengthened our balance sheet, doubled revenues and
with our expanded product line and additional resources, we are confident we are
well positioned to accelerate penetration of existing markets and expand into
related markets."
The Front Porch Digital Board of Directors also previously approved,
subject to shareholder approval, a change in the name of the Company to Incentra
Solutions, Inc. The Company will apply for a CUSIP number change concurrently
with obtaining formal shareholder approval of the name change.
Wells Fargo Securities, LLC acted as financial advisor to Front Porch
Digital and rendered a fairness opinion to Front Porch Digital and its
shareholders in the transaction.
ABOUT MANAGEDSTORAGE INTERNATIONAL, INC.
ManagedStorage International (WWW.MSISERVICE.COM) helps organizations of
all sizes control their storage management costs and provides best-in-class
outsourced services for data protection and resource management. Its services
are delivered to enterprise and service provider customers in the United States,
United Kingdom, Bermuda and Tokyo. MSI uses its proprietary GridWorks management
system to deliver guaranteed data management and data protection services across
all types of storage systems, both on-site and remotely.
ABOUT FRONT PORCH DIGITAL, INC.
Front Porch Digital, Inc. (WWW.FPDIGITAL.COM) is transforming the digital
world by developing unique software and services that convert audio, video,
images, text and data into digital formats that enable searching, browsing,
editing, storage and on-demand delivery of content in nearly any other digital
format through a single capture. Front Porch is a leading provider of archive
management software to broadcasters throughout Europe and Asia.
FRONT PORCH DIGITAL INC. FORWARD LOOKING STATEMENTS
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THIS NEWS RELEASE CONTAINS FORWARD-LOOKING STATEMENTS WITHIN THE MEANING OF
THE PRIVATE SECURITIES LITIGATION REFORM ACT OF 1995, WHICH REFLECT FRONT PORCH
DIGITAL INC.'S CURRENT VIEWS WITH RESPECT TO FUTURE EVENTS AND FINANCIAL
PERFORMANCE. SUCH STATEMENTS ARE SUBJECT TO CERTAIN RISKS AND UNCERTAINTIES THAT
COULD CAUSE ACTUAL EVENTS OR RESULTS TO DIFFER MATERIALLY FROM THOSE INDICATED
FROM SUCH FORWARD-LOOKING STATEMENTS. THE POTENTIAL RISK FACTORS INCLUDE FRONT
PORCH DIGITAL INC.'S LIMITED OPERATING HISTORY AND EXPERIENCE IN THE DATA AND
VIDEO DIGITAL CONVERSION BUSINESS, FRONT PORCH DIGITAL INC.'S ABILITY TO ATTRACT
SIGNIFICANT ADDITIONAL FINANCING AND INCUR OPERATIONAL LOSSES AND NEGATIVE CASH
FLOW, AND RISKS ASSOCIATED WITH EXPANSION. ADDITIONAL RISK FACTORS ARE SET FORTH
IN FRONT PORCH DIGITAL'S REPORTS AND DOCUMENTS FILED WITH THE SECURITIES AND
EXCHANGE COMMISSION.
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