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TERAGLOBAL REPORTS ON BUSINESS PLAN EXECUTION AND MANAGEMENT RESTRUCTURING.
SAN DIEGO, CALIFORNIA, DECEMBER 21, 2000: TeraGlobal Communications Corp.
(Nasdaq: TGCC) today announced a follow up report to its November 3, 2000
investor webcast and related press release. During the November webcast, the
company announced a revised business plan, including a three tiered approach
targeting the end user, service provider and technology and infrastrucure
markets. Today, the company announced the following activities in those markets:
- END-USERS. TeraGlobal is selling TeraMedia to the end user market,
focusing on sales to the Government, Education and Publication and
Media markets. Since the November release the company has announced
two separate sales into the Office of the CIO of the Navy,
participation at a Navy sponsored International Technology Conference;
has received a letter of intent for a sale to Anthony Wayne Local
Schools a school district in Ohio; and announced a sale to Red Car, a
leading music and video editing company.
- SERVICE PROVIDERS. TeraGlobal is marketing its technology and services
to broadband communications companies, Internet service providers
(ISPs) and application service providers (ASPs). Since November, the
company has conducted a number of demonstrations to broadband
communications companies and ASPs. The company is actively seeking
joint sale and joint marketing agreements with those service
providers.
- TECHNOLOGY AND INFRASTRUCTURE SUPPLIERS. TeraGlobal is actively
targeting licensing and joint development relationships with industry
leading technology and infrastructure suppliers. Since November the
company has announced a Sourcing Agreement with Ingram Micro Canada.
The company's video digitizer product has been selected by Sony to
bring its IEEE 1394 line of cameras to the Macintosh OS platform. The
company is also actively involved in negotiations for licenses of
portions of its code to fingerprint scanning companies, camera
manufacturers and network interface card manufacturers.
In November the company declared its intention to aggressively seek
strategic alliance opportunities. To further those efforts the company
announced today the formation of a Strategic Planning subcommittee of its
board of directors. Bill Reddersen, interim chief executive officer for
TeraGlobal and a member of the board of directors, will chair the Strategic
Planning Committee, whose purpose is to review the company's strategic
direction and alliance opportunities.
In other management restructuring, James A. Mercer III, executive vice
president for TeraGlobal, will head financial operations for the company in
addition to his business development responsibilities. Fred McGee has resigned
from his position as chief financial officer of TeraGlobal to pursue other
interests. Roger Anderson, the company's controller, will continue to manage the
company's day to day accounting issues. Darren Seed will continue to manage the
company's investor relations activities.
Management believes TeraGlobal's cash and anticipated revenues are
sufficient to continue its operations through January 2001. The company is
actively negotiating with a number of financial sources for debt or equity
financing. However, no commitment for any such
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financing exists at this time. The company is also interviewing investment
banking firms to assist it in finding capital sources and evaluating prospective
investment, as well as exploring its strategic alliance opportunities.
ABOUT TERAMEDIA-Registered Trademark-
The first solution incorporating TeraGlobal's network technology, TeraMedia
is a next generation software product suite that enables real-time interactive
delivery of voice, video and data between two or more points simultaneously
across any IP or ATM broadband network. With guaranteed Quality or highest
possible Class of Service, TeraMedia delivers true "same room experience" right
to the desktop. TeraMedia is offered directly and through partners as an
interactive collaborative solution, or as part of a fully integrated enterprise
media application.
ABOUT TERAGLOBAL COMMUNICATIONS
TeraGlobal Communications Corp. enables truly integrated real-time digital
communications through advanced networking software. TeraGlobal's patent-pending
network technology and software solutions provides one of the networking
industry's first guaranteed Quality or Class of Service for delivering
simultaneous voice, video and data on integrated broadband networks. Founded in
1998, TeraGlobal is headquartered in San Diego, California with sales and
development offices in Dallas, Texas, and Logan, Utah, respectively. Additional
information is available at http://www.teraglobal.com or by sending an email
inquiry to [email protected].
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Certain matters discussed in this press release may contain forward-looking
statements that may involve risk and uncertainties including, but not limited
to, future revenues, earnings prospects, customers' ability to realize cost and
other benefits from implementing the TeraGlobal's technology and the Company's
ability to execute its business plan. Although TeraGlobal believes that its
expectations are based on reasonable assumptions, it can give no assurance that
anticipated results will occur. Parties receiving this release are encouraged to
review all filings made by the Company with the Securities and Exchange
Commission.
Contacts: TeraGlobal Communications Corp.
Carl Peede (Trade Media)
[email protected]
Darren Seed (Investors)
[email protected]
(858) 404-5500
HTTP://WWW.TERAGLOBAL.COM
