EXHIBIT 99.2
Pinnacle Systems to Offer Total News and Sports Solutions
Acquired Montage Group and Digital Editing Services
MOUNTAIN VIEW, Calif. , 4/7/2000--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 BroadNeTTM 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 nations 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.
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