Letter of Intent Signed
January 09 2001 - 2:00AM
UK Regulatory
RNS Number:8994W
Motion Media PLC
9 January 2001
Motion Media PLC
("Motion Media" or "the Company")
Motion Media establishes US base
Motion Media, announces that it has signed a Letter of Intent to purchase
certain assets of C-Phone Corporation, a Nasdaq listed company for a total
consideration of up to $1.0 million.
The purchase is subject to contract and the approval of C-Phone shareholders.
Under the proposed terms of the deal the Company's recently formed, wholly
owned subsidiary, Motion Media Technology Inc. will acquire certain
inventory, fixed assets and Intellectual Property Rights from C-Phone.
Motion Media anticipates that it will take over the lease on the premises
occupied by C-Phone and will offer employment contracts to key employees,
thereby establishing Motion Media's presence in the US
C-Phone is a provider of video communications technology and products to
general business, security, education and healthcare markets in the US.
Following completion of the transaction C-Phone's products will be re-branded
and added to the existing Motion Media product portfolio.
Of major importance to Motion Media, is C-Phone's existing and new products
based on POTS (plain old telephone system) technology, which enables the
transfer of video images over standard analogue telephone lines. POTS based
products are of great interest within the Telehealth market, one of Motion
Media's key business areas, as higher bandwidth ISDN and IP networks are
generally less commonplace in this market. POTS based products also have
applications in the security surveillance marketplace.
Under the terms of the Letter of Intent, Motion Media has purchased certain
component stocks and will licence technology from C-Phone. The cost of these
items will be deducted from the $1 million total purchase price. The Company
anticipates that the deal will be completed by not later than 30 June 2001.
In the interim, Motion Media will be working closely with C-Phone to develop
products for both existing and new customers of both parties.
Ken Burgin, MD of Motion Media said: "This is an extremely
exciting opportunity for Motion Media. Not only will it gives us an
operational base within the US but with the POTS products and technology, it
will broaden our existing products and services portfolio. This will enable
us to introduce the undoubted benefits of video communications to a far
wider audience."
For further information:
Ken Burgin, Managing Director, Motion Media 01454 313444
Trudi Scantlebury, Press & PR Manager, Motion Media 01454 338581
Jim McGeever, Arm Corporate Finance 020 7512 0191
Patrick Toyne Sewell / Nita Shah, Citigate Dewe Rogerson 020 7638 9571
Notes to Editors:
About Motion Media (MMD)
Motion Media Technology (www.motion-media.com) is a world leader in the
design of video communications products for business, government, and
healthcare organisations around the world. The company provides a range of
low cost, easy to use products with outstanding video quality, including
desktop videophones, group videoconferencing systems, remote surveillance
systems, and a variety of board-level codecs suitable for incorporation into
other products.
Primary markets served are videoconferencing, surveillance, telehealth and
mobile video communications. All are high growth markets now that low cost,
standards-based video communications technology is becoming available.