For: Activision, Inc.
Contacts: John Baker
Senior Vice President, Corporate Development
(310) 255-2222
Maryanne Lataif
Vice President, Corporate Communications
(310) 255-2704
Morgen-Walke Associates
Andrea Kaimowitz/Katherine Mittelbusher
(212) 850-5600
Press: Sheryl Seapy/Amanda Christensen
FOR IMMEDIATE RELEASE (415) 296-7383
ACTIVISION AND EXPERT SOFTWARE ANNOUNCE
AGREEMENT TO MERGE
Transaction Will Catapult Activision into Top Tier
of Value Software Business
Santa Monica, CA, Coral Gables, FL - March 3, 1999 -- Activision,
Inc., (Nasdaq: ATVI) and Expert Software, Inc. (Nasdaq: XPRT), a
leading developer and publisher of value-priced consumer
software, today jointly announced the execution of a merger
agreement pursuant to which Activision will acquire Expert
Software. The deal furthers Activision's growth strategy by
positioning the company as a top player in the value-software
category, one of the fastest growing segments in the PC
interactive leisure software business. The agreement follows
Activision's acquisition eight months ago of Head Games
Publishing, a leading developer and publisher of value-priced
outdoor sports and lifestyle interactive software products.
Under the terms of the agreement, Expert Software's shareholders
will receive $2.65 per share from Activision for a total
transaction value of approximately $23 million, payable in either
stock, cash or a combination of stock and cash. The transaction,
which will be accounted for as a purchase, is expected to be
completed by June 1999 and is subject to customary closing
conditions including the approval of Expert's shareholders. Upon
completion of the acquisition, Expert Software will become a
wholly owned subsidiary of Activision, Inc.
"Combining Expert's products with our Head Games line, catalogue
titles and recognizable brands will further establish Activision
as a leading player in the value-priced software business, which
according to the International Development Group has grown by
more than 75% in dollars from 1997 to 1998," states Ron Doornink,
president of Activision, Inc. "This agreement reinforces our
strategy to capitalize on the tremendous opportunities that exist
for lower-priced PC software and enables us to develop and market
leisure software with recognizable brands at affordable price
points to a mass consumer audience. Activision will now have a
division focused solely on the consumer, product development
process and distribution channels that are unique to the value
business."
"We are very excited to partner with Activision which is
committed to developing a larger value-priced PC software
business," added Ken Currier, Expert's chief executive officer
and co-founder. "By aligning ourselves with them, we will have
the capital, the marketing clout and resources to prosper in the
rapidly consolidating and increasingly competitive market for
consumer software. Additionally, we believe that combining the
popular Expert brands, which include Bicycle Cards and Sega
games, with the Head Games products, as well as an aggressive
exploitation of Activision's substantial library of titles, will
result in a powerful presence in the value-priced market."
Currier continued, "Purchases of quality home PCs priced below
$1,000 steadily increased during 1998. According to research
firm PC Data, 66% of all PC's sold in January 1999 were below
$1,000. We believe that the growing number of home PC owners
worldwide will increase consumer demand for branded,
high-quality, value-priced software titles."
Expert Software's senior management team, including founders Ken
and Sue Currier, have signed long-term employment agreements with
Activision.
Headquartered in Coral Gables, Florida, Expert Software, Inc.
(Nasdaq: XPRT) is a leading developer and publisher of
high-quality, value-priced software titles. The company
specializes in sophisticated yet easy-to-use programs addressing
a broad array of everyday consumer interests, including
entertainment, education, lifestyle, personal productivity and
small office/home office. Most Expert titles are priced under
$15 and are available in more than 25,000 retail locations
throughout the world including computer superstores, office
supply stores, warehouse clubs, supermarkets and drug stores.
Over 27 million units of Expert products have been sold,
including Home Design 3D(R), Landscape Design 3D(R), Diet & Fitness,
Resume Writer, and Casino. The Expert Software family of brands
also includes the popular Sega PC Collection, and Bicycle(R) Card
Games. Expert Software can be found on the World Wide Web at
http://www.expertsoftware.com.
Headquartered in Santa Monica, California, Activision, Inc. is a
leading worldwide developer, publisher and distributor of
interactive entertainment software for personal computers and
advanced console game systems such as the PlayStation game
console and Nintendo 64. Founded in 1979, Activision posted
revenues of $370 million for the calendar year ended December 31,
1998.
Activision maintains publishing and development operations in the
US, Canada, the United Kingdom, France, Germany, Japan and
Australia, and distribution subsidiaries in the United Kingdom,
Germany, The Netherlands and Belgium. More information about
Activision and its products can be found on the company's World
Wide Web site which is located at http://www.activision.com.
The statements contained in this release that are not historical
facts are "forward-looking statements." The companies cautions
readers of this press release that a number of important factors
could cause either Activision's or Expert's actual future results
to differ materially from those expressed in any such
forward-looking statements. These important factors, and other
factors that could affect Activision and Expert, are described in
Activision's Annual Report on Form 10-K for the fiscal year ended
March 31, 1998, and Expert's Form 10K and Quarterly Reports on
10-Q, which have been filed with the United States Securities and
Exchange Commission. Readers of this press release are referred
to such filings.
[End of press release]