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SIERRA ON-LINE SIGNS AGREEMENT TO ACQUIRE FRENCH SOFTWARE PUBLISHER

 SEATTLE, Oct. 20 /PRNewswire/ -- Sierra On-Line Inc. (NASDAQ: SIER) announced today that it has signed an agreement to acquire Coktel Vision S.A., a French publisher of educational and entertainment software products, for 27 million French francs (equivalent to approximately U.S. $5 million based on current exchange rates) and additional earnout payments of up to an aggregate 30 million French francs contingent on achieving certain revenue and profitability targets over the next four years. The purchase price is payable in cash with contingent installment payments in cash or Sierra common stock, at Sierra's option. The transaction remains subject to French government approval and is expected to be consummated in late October. Coktel Vision had revenues of approximately U.S. $4.2 million (adjusted to reflect current currency exchange rates) for the year ended Dec. 31, 1992, and is best known for its ADI educational series of software products.
 Sierra President Ken Williams stated, "This transaction will give Sierra the opportunity to expand its sales and distribution of educational software into Europe. Additionally, it should provide Sierra with the critical mass required to manufacture our products in Europe and to open an additional European sales/support office. We believe that a consolidation with Coktel Vision will ultimately result in a much stronger European operation for Sierra and increased European sales of our U.S. products. Following closing of the acquisitions, Coktel's founder, Roland Oskian, will assume responsibilities for our overall European business."
 Oskian added, "I don't believe that Sierra has been realizing its full revenue potential in Europe. My goal is to try to realize this potential, profitably and as quickly as possible."
 Sierra On-Line Inc., which includes the ImagiNation(TM) Network, Dynamix Inc. and Bright Star Technology Inc., develops and publishes entertainment and educational software for IBM PCs and PC-compatibles, Apple Macintosh computers and Sega-CD systems.
 -0- 10/20/93
 /CONTACT: Richard Gelhaus, executive VP/Finance & Operations, 206-637-4941; Eugene G. Heller of Silverman Heller Associates, 310-208-2550/
 (SIER)


CO: Sierra On-Line Inc.; Coktel Vision S.A. ST: Washington IN: CPR SU: TNM

LM-MF -- LA041 -- 4762 10/20/93 16:27 EDT
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Publication:PR Newswire
Date:Oct 20, 1993
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