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Exhibit 99.1
FOR IMMEDIATE RELEASE
WAVO SELLS SATELLITE DELIVERY DIVISION TO CIDERA
WAVO NOW POSITIONED TO ACCELERATE GROWTH OF ITS INTERNET MEDIA DELIVERY BUSINESS
PHOENIX, AZ - SEPTEMBER 12, 2000 - WAVO Corporation (Nasdaq: WAVO) announced
today that it has entered into an agreement to sell its satellite network
division to privately held Cidera, Inc. for $14.5 million. Terms of the
agreement include Cidera purchasing all of the assets of this division for $12
million in cash, $2.5 million in Cidera common stock and the assumption of
certain liabilities. Cidera is an international leader in satellite broadcast of
Internet content.
"Through this divestiture, we have been able to leverage the value of
our satellite assets, which are not part of our strategic focus for the future,
to drive our Internet strategy," said David Deeds, CEO of WAVO Corporation. "It
propels our 18-month business plan into high gear, providing the capital that
enables WAVO to focus on our MediaXpress Internet media delivery business."
In addition, the agreement calls for Cidera to enter into a service
agreement with WAVO to utilize WAVO's MediaXpress service to provide
Internet-based media delivery services for select Cidera customers. Details of
this agreement will be disclosed at closing.
"This is an exciting time for WAVO," said Michael Coffin, President and
COO of WAVO. "Our relationship with Cidera is an important step forward for
MediaXpress. In addition, the completion of this deal provides us with an
immediate cash infusion that relieves the need for equity funding. This
transaction is good for our customers, our employees, our strategic partners and
our shareholders."
"The acquisition of WAVO's satellite operations further positions
Cidera as an international leader in satellite based broadcast delivery of
Internet content," said Richard J. Hanna, Cidera President and Chief Executive
Officer.
The WAVO-Cidera transaction is expected to close in October, 2000.
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ABOUT WAVO
WAVO Corporation (Nasdaq: WAVO) is in the business of moving media. As an
industry leading digital media services company, WAVO partners with the foremost
providers of news, business data, consumer content and multimedia programming.
WAVO provides value added content management and electronic commerce services to
media providers over the Internet, delivering quality content to an information
dependent society. WAVO's products include MediaXpress, the industry's leading
solution for delivering real-time rich media and content to Web servers
worldwide, and Virgin JamCast, an innovative Web service that delivers targeted
high quality music directly to consumers without the wait times associated with
traditional music downloading.
ABOUT CIDERA
Cidera, Inc., the Internet Broadcast Backbone, is an international leader in the
satellite delivery of broadband content to the edge of the Internet. Cidera uses
innovative high-speed satellite technology designed to transport high-bandwidth
data faster, more reliably, and more efficiently to ISPs and DSL and cable
access providers. Cidera is expanding its international network infrastructure
to improve the movement of Website content, streaming audio and video, live
Webcasts, large databases and Usenet news over the Internet. Cidera serves more
than 400 Points of Presence (POPs) in North America, Europe and Asia. Additional
information can be found at www.cidera.com
Certain of the above statements regarding WAVO constitute forward - looking
statements that involve risks and uncertainties. Actual results could differ
materially from such forward-looking statements as a result of a variety of
factors, including, but not limited to, timely development and acceptance of new
products and services, including MediaXpress and VirginJamCast, technology
changes, competitive developments, the success of relationships with third
parties, and the risk factors described from time to time in WAVO's SEC filings.
(C) Copyright WAVO Corporation, 2000. All rights reserved. WAVO and MediaXpress
are trademarks of Wavo Corporation. All other trademarks or service marks
mentioned herein are those of WAVO Corporation or their respective owners.
CONTACT INFORMATION:
FINANCIAL INQUIRIES:
Ken Swenson, CFO
WAVO Corporation
602-952-5500
[email protected]
MEDIA INQUIRIES:
Elizabeth Perrine, VP, Marketing
WAVO Corporation
602-952-5500
[email protected]
Al Cunniff, PR Manager
Cidera, Inc.
301-598-0500, x 4424
[email protected]
