This press release from eCommercial, announcing a $4 million investment in Pixelon, attracted a number of potential investors, including Advanced Equities, which ultimately arranged $28 million in funding.
DISTRIBUTION: TO BUSINESS AND TECHNOLOGY EDITORS
HEADLINE: eCommercial.com, Pixelon Sign $6 Million Investment and Strategic Agreement; Exclusive Partnership Formed for Asynchronous, Streaming Media Applications
DATELINE: ALISO VIEJO, Calif., May 25
BODY:
eCommercial.com, Inc. (OTC Bulletin Board: ECRL), a provider of asynchronous rich-media Internet advertising (www.eCommercial.com), and Pixelon, Inc. (www.pixelon.com), developers of the patented leading technology for high-performance media compression and network delivery, have agreed to an exclusive strategic partnership and a $6 million mutual equity investment transaction.
Pixelon has eight patents surrounding its advanced media compression technology, which it has built from the ground up, including its microchip design. The company's technology was used in the Internet marketing campaign for the most recent Star Trek film.
Under the agreement, the two companies will become exclusive partners for asynchronous messaging and "streaming" media applications such as the video delivery services offered by Broadcast.com (www.broadcast.com). eCommercial.com has the exclusive right to use Pixelon's technology in the asynchronous delivery of video and audio over the Internet, and will use the technology for its eCommercials when streaming media is utilized. An executive from each company will sit on the other's Board of Directors.
Under the agreement, eCommercial.com will invest $4 million in cash to own 10% of privately held Pixelon's fully diluted equity. Pixelon has agreed to purchase $2 million of eCommercial.com common stock. eCommercial.com will have approximately 9.3 million shares outstanding upon completion of the transaction.
The transactions are expected to close by the end of June 1999.
"We are using our patented media compression technology to deliver true TV-quality video and stereo-quality audio over the Internet rather than the moving slideshow available from other technologies," said Michael Fenne, founder and chief technology officer of Pixelon. "Right now, we are able to deliver media at 30 frames per second at 400 kilobytes, and over the coming months we expect to bring the next generation of our hardware online, leading to even greater, higher-performance media compression at lower bandwidths."
"This is one of several investments we hope to make that complement our existing technology and furthers our advantages in the marketplace," said Tom Blakeley, CEO of eCommercial.com. "This is the most advanced compression technology available, and enables us to provide companies like Broadcast.com (www.broadcast.com) with actual TV-like quality on the Internet."
About eCommercial.com
eCommercial.com, based in Aliso Viejo, California, is a leading provider of asynchronous rich-media messaging for electronic commerce. The company has partnered with several global entertainment companies seeking to expand the traditional advertising of film, television and music onto the World Wide Web. The company maintains a growing staff of professional software application and network engineers, content designers, producers and other professionals.
About Pixelon
Pixelon, based in San Juan Capistrano, California, has developed the industry's most advanced proprietary system for compressing analog media sources into digital multimedia files viewable by personal computers worldwide. The company holds eight patents surrounding its technology, which allows for TV-quality audio and stereo sound to be experienced over the Internet. Pixelon has an array of specialized delivery systems of software, hardware and environmental capture cards for its clients in the entertainment, advertising, sports, corporate and live broadcast industries.
This press release may contain certain forward-looking statements with respect to the company that are subject to risks and uncertainties that include, but are not limited to, the company's ability to obtain contracts, competition in the marketplace and general market conditions. Actual results may vary materially.
SOURCE eCommercial.com, Inc.
CONTACT: Wayne Brown, Senior Vice President, wayne@ctaonline.com, or Denise Zainea, Account Executive, denise@ctaonline.com, both of Carl Thompson Associates, Inc. for eCommercial.com, Inc., 800-959-9677
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