Heppenheim, Germany and Chicago, IL, April 12, 1996 -- ESCOM AG, a German computer manufacturer and reseller and Visual Information Services Corp. (Nasdaq: VICP, Bulletin Board), a developer of interactive TV (ITV) set-top-boxes to enhance television use and viewing by providing Internet access and electronic communications function, today jointly announced that a binding letter of understanding has been signed between the companies.
The letter states that Chicago-based VIScorp would acquire Amiga Technologies, including the intellectual properties of the former Commodore Business Machines, excepted Commodore trademarks. The transaction value is approximately US $40 million. Terms were not disclosed, and the pending acquisition would be subject to approval by both companies' boards of directors.
"This intended acquisition is part of VIScorp's strategy to build market leadership in the fast-growing field of ITV", said William Buck, Chief Executive Officer. "As a result, we would own Amiga intellectual properties, including several that are currently used in our set top-box, Electronic Device (EDŽ). We would also have control over the supplied chip sets used in ED as well as Amiga inventories and access to the company's current sales and distribution channels."
Commenting the proposed acquisition, Helmut Jost, chief executive of ESCOM AG, said: "VIScorp has a clear vision of the Amiga technology potential for ITV applications. We are eager to support and work together over the terms of the letter of understanding to ensure a smooth transition between the two companies. VIScorp anticipates the support of ongoing European sales of popular models such as the A4000T and the A1200 as well as the current developments and future releases of Amiga Technologies."
Petro Tyschtschenko, president of Amiga Technologies stated "I am looking forward to being able to take advantage of the research and development support potential that an Amiga-related company like VIScorp can provide."
Commenting that the primary objective of the proposed acquisition is to give VIScorp full access to the Amiga technology to support development of its ITV device, Mr. Buck noted: "Our intention is to rapidly develop and begin manufacturing TV set-top interactive boxes -- products that give home users capabilities such as telephone reception and dial up capabilities, facsimile, video games, pay-per-view options, electronic mail, and access to on-line services, including the Internet."
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What I have been telling people is not to worry. We are all Amiga lovers here. Unlike ESCOM or even Commodore, VIScorp does not have a single IBM PC person in the development group. We are all solid Amigans from the very beginning. Personally speaking, I don't plan on killing the Amiga. In fact, I'm hoping to build one killer Amiga!