Avstar Systems Launches as iNEWS; Name Change Reflects Expanded Strategy, Encompassing Move Into the Internet and Interactive Markets.

Business Editors/High-Tech Writers

IBC 2000

MADISON, Wis.--(BUSINESS WIRE)--Aug. 23, 2000

Avstar Systems LLC, the worldwide market leader in newsroom computing systems, today announced that it will now be known as iNEWS. The new name reflects the company's vision and commitment to developing new rich media solutions for the Internet and interactive markets, while continuing to support the world community of traditional television and radio broadcast journalists. In brief, iNEWS is the essence of "convergence newscasting."

"The past year has been one of incredible growth for the company and the industry at large," said Matt Danilowicz, iNEWS CEO and president. "We have established ourselves as the primary portal for broadcast news journalists, delivering award-winning newsroom and iNewscasting solutions to both traditional broadcasters and Internet companies. With our accelerated push into the Internet and interactive markets, iNEWS will be the leading provider of tools for convergence newscasting."

Danilowicz also commented, "Our parent companies, Avid Technology and Grass Valley Group, are equally pleased about the name change since our new image reflects the bridge we provide to guide our traditional broadcast customers and Internet companies into this new world of convergence newscasting."

The name change initiative was prompted by the broadcast industry's current state of flux, as the various outputs for news content broadcasting -- networks, local stations and webcasting -- converge. Each of these prospective purveyors of news content shares a common challenge; they must leverage their existing operations to proliferate content across multiple outputs. Already serving as the primary portal for most of the world's TV and radio journalists, iNEWS will continue to address what broadcasters and rich media providers are recognizing: the opportunity associated with (re)purposing content for the web. With the launch of iNewscasting at NAB 2000, and the recent successful installations of the Newsroom Computer System (NRCS) at Yahoo! FinanceVision and WebFN.com, as well as upcoming IBC announcements such as JagFN.com and strategic partnerships with Vertigo Multimedia and Media Exchange International to facilitate content brokering, the iNEWS name continues to signify the company's vision and market direction.

"The name iNEWS reflects the ability and willingness to push the frontiers of news technology into new markets," said Jim Adams, iNEWS vice president of global marketing. "The 'i' in our new name, stands for information, interactivity and the Internet. Our current and forthcoming iNewscasting tools will continue to extend the company's value-add to the market, enabling easy purposing and repurposing of rich media for web development. We are committed to providing the most flexible and robust tools available on open, interoperable and standards-based platforms."

The move by iNEWS into the Internet and interactive markets will be further detailed at the iNEWS IBC press conference taking place in Room E, RAI Centre, Amsterdam on Friday, September 8, 2000 at 10:00 a.m. and the iNEWS launch party at the Rembrandt House (Rembrandthuis) Museum, Amsterdam on Sunday, September 10, 2000 starting at 5:30 p.m. iNEWS product offerings can be viewed at IBC on Stand No. 5.237 and at RTNDA on Booth No. 1113. Effective immediately, the new iNEWS domain name will be changed to www.inewsroom.com.

About iNEWS

iNEWS (formerly Avstar Systems LLC), is the primary portal for the majority of the world's TV and radio journalists. Dedicated to supporting the international community of purveyors of rich media news content -- TV, radio and Internet journalists -- through technological innovation, iNEWS ensures the continued independence of news media by developing tools that are content-independent. Headquartered in Madison, Wisconsin with additional offices worldwide, iNEWS products are installed in the world's leading broadcast and Internet facilities serving more than 80,000 journalists and webcasters. For more information, see the iNEWS Web site at http://www.inewsroom.com or call 608/274-8686.

iNEWS FREQUENTLY ASKED QUESTIONS

Company:

1. Why has Avstar changed its name?

Avstar has changed its name to reflect the company's vision and commitment to developing new rich media solutions that can be leveraged across multiple platforms -- ie: web, datacasting, wireless devices,TV, and radio. Avstar recognized this opportunity at NAB 2000 when it launched its iNewscasting strategy, announcing successful installations at Yahoo! FinanceVision and WebFN. The iNewscasting solution was a precursor to Avstar's long term vision and commitment to offering open, interoperable and standards-based solutions across multiple outputs while continuing to serve as the primary portal for most of the world's TV and radio journalists. To that end, the Avstar name, which was closely associated to the product brand, no longer served as a descriptor of the product's full scope and company strategy. Similarly, "iNEWS" better typifies the new areas of expertise that Avstar is moving into, such as facilitating tools for content brokering and additions to our Internet and interactive strategy, all of which will be announced at IBC.

Lastly, the Avstar name is too similar in nature to various other company names. With Avstar's entry into new Internet and interactive markets this could lead to confusion.

2. What is the charter of iNEWS?

The iNEWS vision is to be the leading provider of solutions for "convergence newscasting" for traditional broadcasters and Internet companies, broadcasting rich media assets across multiple platforms -- spanning networks, local stations and webcasters.

3. What is convergence newscasting?

Convergence newscasting leverages rich media assets which can be distributed across multiple outputs, potentially including the web, broadband, ultra-band, over-the-air TV and radio broadcast, interactive TV devices, hybrid datacasting using the ATV spectrum and wireless devices (WAP-enabled devices including phones and pagers.)

4. What are rich media assets?

Rich media assets include multiple media types such as: text, data, graphics, sound and moving images all of which can be leveraged by the multiple mediums, including the Internet, and layered interactively to create a new level of consumer experience known as "rich media." According to research analysts Friedman, Billings, Ramsey & Co. and Forrester Research, by 2004, rich media revenues will comprise at least 1% or $ 8 billion of the total media, entertainment and communications market (MEC) (projected to be $ 831 billion by 2004.)

5. Does the name change reflect an ownership change?

No. iNEWS remains a 50/50 joint venture between Grass Valley Group and Avid Technologies.

6. Who is iNEWS? What markets will iNEWS be addressing?

iNEWS continues to serve as the primary portal for the majority of the world's TV and radio journalists, dedicated to supporting the international community of purveyors of rich media news content through technological innovation and content-independent tools. iNEWS is the essence of "convergence newscasting," embodying the future of broadcasting rich media assets across multiple platforms -- spanning networks, local stations and webcasting via traditional broadcasters and Internet companies.

7. Is iNEWS positioning itself as a dot.com?

No. The company continues to position itself as a provider of broadcast newsroom solutions for the international community of television, radio and Internet journalists. iNews will continue this commitment, enhancing these tools with next-generation functionality that encompasses webcasting, datacasting, television and radio broadcasting.

8. How are customers reacting to this announcement?

iNEWS customers, particularly the traditional broadcasters, are reacting very positively to the name change since the new strategy that is embodied in the name change reflects the current broadcast market trends: an explosion in the use of various new media, spanning from WAP-enabled devices to the web. Additionally, they see this as an opportunity to align themselves with the market leader, who is addressing these pressing issues by providing innovative solutions through actual deployments.

9. Where will the headquarters of iNEWS be located? What will the operations structure be?

iNEWS's headquarters will remain in Madison, Wisconsin focusing on the Americas with additional offices in the UK, Germany, France, Spain and Australia to target the European, the Middle Eastern and Asia-Pacific markets. Additionally, in the countries in Europe, Asia-Pacific, the Americas and the Middle East where iNEWS does not have its own offices, a distributor network has been established and both Avid and Grass Valley Group sales teams are continuing to being utilized.

10. Who is on the management team of iNEWS?

The management team of iNEWS did not undergo any restructuring and remains to include:

Matt Danilowicz, President and CEO Bob Long, Chief Technical Officer Patrick Liegel, Vice President of Finance Dan Desjardins, Vice President-Research and Technology Jim Adams, Vice President of Global Marketing Linda Post, Vice President of Sales for the Americas & Asia-Pacific Adrian Scott, Vice President-European Marketing Mathias Eckert, Director of European Sales

11. Is the iNEWS name change a short term strategy?

No, the iNEWS name change does not reflect a short term strategy. It is definitely long term, as it reflects the company's vision and new direction that was first initiated at NAB 2000 with the launch of iNewscasting.

12. How will the iNEWS name change add value to Avstar's existing position in the marketplace?

The iNEWS name, which embodies an expanded corporate strategy, better addresses the markets (TV, radio and the Internet) leveraged by today's traditional broadcasters. Similarly, iNEWS will continue to provide innovative newsroom solutions to the Internet and interactive markets.

The Market:

1. What primary markets will iNEWS serve?

iNEWS will continue to serve the journalists in the three primary markets:

a. Traditional TV news broadcasters b. Radio broadcasters c. Webcasters

2. What is the current state of those markets?

The reality of these markets is that the television and radio markets, specifically, are consolidating at an unprecedented pace. The market for webcasting, on the other hand, is expanding.

It is our view that traditional broadcasters are just now implementing strategies that take advantage of new convergence newscasting opportunities. During the next two years, we believe that the largest category of investment expenditure within traditional newsrooms will be aimed at new technologies that support new outputs, including webcasting, datacasting, etc. We anticipate major investments in the core newsroom infrastructure from the traditional customer base as well as from the new internet webcasters.

3. How does iNEWS intend to stay competitive in those markets?

iNEWS will continue to capitalize on their world-wide market leadership as the authority of managing and distributing content (based on their role as the "primary portal" for news journalists) through their continued innovation and development of software tools for convergence newscasting. Furthermore, iNEWS will continue to leverage their strategic partnerships with leading vendors and system integrators in the various target markets, including the Internet and interactive markets.

4. How does iNEWS intend to expand/create new markets, including those defined by I-newscasting and content brokering?

It is the utmost policy of iNEWS to continue to provide innovative newsroom solutions and be the primary news portal for the majority of the world's TV, radio and Internet journalists, either by aligning with the appropriate partners, providing R&D with the necessary resources or through mergers and acquisitions.

5. What specific R&D efforts have been undertaken to ensure the future competitiveness of iNEWS products and new releases down the line?

We are in the process of redirecting over 60 percent of our R&D resources into iNewscasting. The remaining resources will continue to focus on our core newsroom tools, such as the iNEWS Newsroom Computer System, NRCS, Broadcast Control System, BCS and Media Browse, MB 2000. Furthermore, the IBC-slated content brokering and multimedia partnerships with Vertigo Multimedia and Media Exchange will enable us to jointly develop next- generation work flow tools that support the (re)purposing of content for datacasting and webcasting.

6. What is the value proposition and customer benefits of the iNEWS product portfolio?

Our product offerings enable all journalists (broadcast TV, radio and Internet) to increase their audience scope by leveraging all outputs and media assets. To that end, our solutions allow the broadcaster to retain and maximize their brand equity without relinquishing it to web aggregators. Additionally, by increasing the audience scope through purposing and repurposing media types for different outputs, broadcaster's potential for increased revenues will also grow. Furthermore, the improved workflows that result from the iNEWS solutions will allow broadcasters to better manage the plethora of media assets, ensuring a more timely and news worthy to-air process, resulting in an increased competitive edge and higher ratings.

7. Does iNEWS intend to acquire new products, technologies or companies?

To ensure that iNEWS's leadership in this space and depending on the required technologies of convergence webcasting in the future, iNEWS will make the necessary decisions with respect to either developing its own solutions and technologies or acquiring complementary technologies.

8. Does iNEWS have plans to make an initial public offering of stock?

iNEWS has no immediate and impending desire to change the iNEWS ownership. As mentioned at the NAB 2000 press conference, the company continues to look at all options, and its current success continues to prompt interest in the company, as would be the case with any other successful company in a similar position.