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Exhibit 99.1
FOR IMMEDIATE RELEASE
WAVO CLOSES CIDERA DEAL FOR $14.5 MILLION
SALE OF SATELLITE DIVISION TO CIDERA PROVIDES CAPITAL AND ADDITIONAL REVENUE
PHOENIX, AZ - OCTOBER 12, 2000 - WAVO Corporation (NASDAQ: WAVO) announced today
that it has completed the transaction to sell its satellite delivery division to
privately held Cidera, Inc. for $14.5 million. Terms of the deal include the
sale of WAVO's FM and satellite network assets for $12 million in cash, $2.5
million in Cidera common stock and the assumption of certain liabilities. In
addition, Cidera has entered into a $1.2 million, renewable service agreement
with WAVO to utilize WAVO's MediaXpress service to provide Internet-based
delivery for select Cidera customers.
"We're delighted and are looking forward to helping Cidera
support their rapidly expanding customer base," said Michael Coffin, President
and COO of WAVO. "Our service agreement with Cidera represents approximately a
40% increase in our MediaXpress revenue base."
43 of WAVO's Salt Lake City-based employees will transfer to
Cidera at the time of closing.
"The acquisition of this division will enable Cidera to provide
our customers with enhanced delivery options and services," said Richard J.
Hanna, Cidera President and Chief Executive Officer.
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.
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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, our ability to maintain our listing with Nasdaq, 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:
Elizabeth Perrine, Senior Vice President, Marketing
WAVO Corporation
602-522-7768
[email protected]
Al Cunniff, Public Relations Manager
Cidera, Inc.
301-598-0500, x 4424
[email protected]
