3DO Receives Remaining $40 Million of $100 Million License Fee From Matsushita for M2 Technology.REDWOOD CITY Redwood City, city (1990 pop. 66,072), seat of San Mateo co., W Calif., on San Francisco Bay; inc. 1868. Manufactures include commmunications, electrical, electronic, and medical equipment. , Calif.--(BUSINESS WIRE)--July 1, 1996--The 3DO Company today announced that it has received the remaining $40 million from Matsushita Electric Industrial Company Ltd. for license of its 64-bit M2 technology. 3DO has now received the full $100 million up front license fee from Matsushita, the first $60 million having been received last December. The $40 million fee was received on completion of the M2 core technology. The $100 million, less 10 percent withholding tax The amount legally deducted from an employee's wages or salary by the employer, who uses it to prepay the charges imposed by the government on the employee's yearly earnings. , is being recognized in fiscal 1996, 1997 and 1998 as the company completes engineering services for Matsushita. "Today's announcement validates our expertise and strength in the 64-bit technology area" said Trip Hawkins William M. 'Trip' Hawkins III (born December 28[1], 1953) is a Silicon Valley American entrepreneur and founder of Electronic Arts, The 3DO Company and Digital Chocolate. , chairman and CEO (1) (Chief Executive Officer) The highest individual in command of an organization. Typically the president of the company, the CEO reports to the Chairman of the Board. of The 3DO Company. "With Matsushita -- a worldwide consumer powerhouse -- backing M2, we expect our technology to proliferate a new wave of consumer electronics." In December 1995, 3DO signed a definitive agreement with Matsushita to license its M2 technology for a $100 million license fee plus additional royalties commencing in 1998. Under the agreement, Matsushita has exclusive rights to use the M2 technology to power next-generation consumer and commercial products including 64-bit video game systems, Digital Video Disc See DVD. Digital Video Disc - Digital Versatile Disc (DVD DVD: see digital versatile disc. DVD in full digital video disc or digital versatile disc Type of optical disc. The DVD represents the second generation of compact-disc (CD) technology. ) players and interactive television set-top boxes. Matsushita also has the rights to sublicense the M2 technology to hardware companies and software developers. 3DO has the rights to develop and distribute software and peripherals compatible with M2 hardware products, and to use the M2 technology for the development and distribution of computer software and hardware products, and software development authoring systems. Except for the historical information contained herein, the matters discussed in this release are forward looking statements that involve risks and uncertainties. Potential risks and uncertainties include, without limitation, market demand and acceptance for the company's current and future products, the company's ability to develop and ship future products, and the consequences of competitive factors in the marketplace. Further information on potential factors which could affect the company's financial results are included in the company's filings with the Securities and Exchange Commission, including the company's Report on Form 10-K Form 10-K A report required by the SEC from exchange-listed companies that provides for annual disclosure of certain financial information. Form 10-K See 10-K. for the fiscal year ended March 31, 1996. The 3DO Company, headquartered in Redwood City, Calif., designs, integrates and sells advanced interactive technology and software titles for the mass market. With offices in North America North America, third largest continent (1990 est. pop. 365,000,000), c.9,400,000 sq mi (24,346,000 sq km), the northern of the two continents of the Western Hemisphere. and Europe, the company licenses technologies and creates entertainment software for 32-bit and 64-bit video game platforms, the personal computer market and the Internet. Additional company information is available on the World Wide Web at www.3do.com and on America Online See AOL. (keyword: 3DO). -0- Note to Editors: 3DO and the 3DO logos are trademarks and/or registered trademarks of The 3DO Company. All other product names are trademarks and/or registered trademarks of their respective owners. CONTACT: The 3DO Company Shernaz Daver, 415/261-2792 Tuesday Uhland, 415/261-3142 |
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