EXHIBIT 99.1
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Videolocity Int'l, Inc. and Cornell Capital Partners, LP
Announce $20,000,000 Equity Funding
SALT LAKE CITY--(BUSINESS WIRE)--May 29, 2002--Videolocity International Inc.
(OTC BB: VCTY), Salt Lake City/Park City, Utah, announces that the $10,200,000
financial commitment between Videolocity International, Inc. and Cornell Capital
Partners, LP, announced on March 27, 2002, has been increased to $20,000,000 and
the execution of the final agreements between the parties was completed on May
28, 2002.
Pursuant to the terms of the funding agreements with Cornell Capital, a New
Jersey-based domestic investment fund, Videolocity has the right, but not the
obligation, to require Cornell Capital to purchase shares of the Company's
common stock in amounts up to $1,000,000 per month to a maximum of $20,000,000
over the next 24 months. Such equity draw-downs are entirely at the discretion
of Videolocity and there are no minimum draw-downs required in the agreements.
The draw-downs are subject to an effective registration statement with the
United States Securities and Exchange Commission covering the resale of the
shares, which will be filed in the next few days.
Videolocity's CEO Robert Holt, stated, "We are pleased to have executed
agreements with Cornell Capital on terms beneficial to both parties. These
agreements allow us access to the working capital necessary to implement our
business plans over the next twenty-four months. Further, the agreements provide
us with the flexibility to control the timing and amount; it also allows us to
effectively manage the potential dilutive effects that are characteristic of
many forms of equity financing."
Mr. George Kanakis, Vice President of Cornell Capital Partners, LP, added,
"We are excited and grateful for the opportunity to play a role in supporting
the efforts of Videolocity in its quest to provide a state of the art
Video-On-Demand "Digital Entertainment System(TM)" for the hotel, hospitality
and residential markets. We think Videolocity is a special situation and the
company is strongly positioned to take long term advantage of the high growth
opportunities offered by the constantly changing needs of hoteliers and
hospitals for improved technologies. We look forward to working closely with
Videolocity's management, and providing investment banking services in addition
to the equity commitment to help Videolocity realize its full growth potential."
About Videolocity
The Videolocity Digital Entertainment System(TM) delivers video on demand
streaming at 1Mbps or less in an Mpeg4 format while achieving "like" DVD
quality. In addition to video content viewing, the Digital Entertainment
System(TM) provides high speed Internet access, digital music on demand, games,
full web surfing and a variety of e-commerce applications as well as customer
specific informational and educational content.
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The Videolocity Digital Entertainment System(TM)can be deployed in a closed
network environments such as in hotels, timeshare condominiums, hospitals, and
assisted living facilities, or over wide area networks serving intelligent
communities, residences and PDA's. The system is currently adaptable to Wireless
802.11 WAN/LAN, Fiber, Satellite, Ethernet or DSL network architectures.
Videolocity currently offers Microsoft and/or Linux based solutions using
standard protocols and equipment enhanced by the company's innovative
proprietary technologies and methodologies. The flexible, highly customizable
and fully scalable delivery platforms combined with advanced embedded software
applications allow for full remote system upgrades and easy updates of content
and/or features.
This release may contain "forward-looking" statements with respect to future
strategic plans, goals or objectives of Videolocity International Inc. and its
affiliated companies. Any forward-looking statements, including those regarding
Videolocity, respective management's current beliefs, expectations,
anticipations, estimations, projections, proposals, plans or intentions, are not
guarantees of future performance or results and involve risks and uncertainties,
such as those discussed in Videolocity International Inc.'s Form 10-KSB for the
year ended Oct. 31, 2001, together with any subsequent 8K and 10Q filings. The
forward-looking statements are based on present circumstances and on
Videolocity's predictions respecting events that have not occurred, that may not
occur, or that may occur with different consequences and timing than those now
assumed or anticipated. The Company does not undertake the responsibility to
publicly update or revise its forward looking statements even if experience or
future changes make it clear that projected results (expressed or implied) will
not be realized.
Videolocity International Inc.
Investor Relations, 801-521-2808
www.videolocity.com
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